Final answer:
The purpose of ROMI is to measure the rate at which spending on marketing contributes to profits. It is a financial metric used by businesses to evaluate the effectiveness of their marketing efforts.
Step-by-step explanation:
ROMI is a financial metric used by businesses to evaluate the effectiveness of their marketing efforts. It helps determine the return on investment for marketing initiatives by comparing the net profit generated to the amount of money spent on marketing. For example, if a company spends $100,000 on marketing and generates $200,000 in net profit, the ROMI would be 2 ($200,000 / $100,000). A ROMI value greater than 1 indicates that marketing investments are generating more profit than the cost, while a value less than 1 suggests that marketing efforts are not providing a positive return.