If profit is the goal, Return on Investment (ROI) is the measure. Applied to everything from manufacturing to distribution, ROI is the senior management measure of performance. With "good" ROI comes top line growth and organizational clout for budgeting, resources, and credibility.

Leading Brands gives you visibility into results - With detail at every level, Leading Brands provides visibility into performance at all levels of the marketing organization. At the senior level, high level measures show brand and program-level ROI results. View customized marketing and media mix allocations, brand tracking, and gains against consumer segments. At the tactical level, view campaign performance in near time, optimizing mid campaign or from cycle-to-cycle. View campaign ROI and consumer segment, creative, and media performance detail. Most importantly, Leading Brands puts marketing executives in front of the marketing accountability curve, driving top-line growth.

ROMI Calculations

Factor TG proposes a series of specific Return on Marketing Investment calculations to capture the full effects of the campaign. The top-level or most general ROMI calculation is expressed as a percentage:

ROMI = Return = Gross Margin - Investment = (Revenue - COGS) - Investment
Investment Investment Investment

To understand the campaign's effectiveness at new customer acquisition and returning customer purchase, additional calculations are also conducted.

Calculating the Marketing Investment

Determining which expenses are appropriately assigned as "investment" expenses is a critical exercise in ensuring a sound ROMI calculation. The Factor TG method includes the following for purposes of classifying the advertising investment:

• Creative development and materials
• Media
• Agency fees pro-rated to the campaign effort
• Marketing staff burdened hours associated with campaign management and delivery
• Research expenses including advertising effectiveness and brand tracking prorated to the campaign