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List the marketing management functions, including the elements of a marketing plan, and discuss the importance of measuring and managing return on marketing investment:

A) Marketing functions include only advertising and promotion
B) A marketing plan consists of short-term tactics
C) Return on marketing investment is not relevant
D) Measuring and managing return on marketing investment is crucial for long-term success

1 Answer

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Final answer:

Marketing functions cover a range of activities, not just advertising and promotion. A marketing plan includes various strategic components and links short-term tactics with long-term strategy. ROMI is an essential metric for assessing the effectiveness of marketing efforts.

Step-by-step explanation:

Marketing Management Functions

The marketing management functions encompass a wide array of activities beyond advertising and promotion. They include market research, product development, pricing strategies, distribution methods, customer relationship management, and sales forecasting, among others. Therefore, option A is incorrect as marketing functions are not limited to advertising and promotion alone.

Elements of a Marketing Plan

A comprehensive marketing plan outlines the strategic approach a company will take to reach its marketing goals. This plan includes an analysis of the target market, the marketing mix (product, price, place, promotion), budget, sales forecasts, and performance metrics. The plan should align with both short-term tactics and long-term strategy, making option B incorrect as it suggests that a marketing plan is only about short-term tactics.

Importance of Return on Marketing Investment

Return on marketing investment (ROMI) is a crucial metric that measures the profitability and effectiveness of marketing expenditures. It guides decision making and helps marketers to understand which strategies yield the best results. Since it helps in optimizing marketing cost and maximizing profitability, option D is correct in asserting that measuring and managing ROMI is essential for long-term success, while option C is incorrect as ROMI is indeed relevant.

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