Final answer:
ROI Analysis is the proper method to evaluate the effectiveness of advertising and marketing efforts, as it compares the profitability relative to the investment made. Cost/benefit analysis is also used, weighing the marginal costs against the marginal benefits to make an informed decision.
Step-by-step explanation:
To determine if your advertising and marketing efforts are effective, C) ROI Analysis is the most appropriate tool to use. ROI, or Return on Investment, measures the profit or loss generated on an investment relative to the amount of money invested. It is a key performance indicator (KPI) in marketing that helps businesses assess the efficiency of their marketing campaigns. By comparing the incurred costs and the benefits that result from a marketing initiative, organizations can decide whether the investment has paid off.Employing a cost/benefit analysis can also assist in this endeavor. In this analysis, marginal costs—the extra cost of adding an additional unit, are weighed against marginal benefits—the extra benefit of adding the same unit. This helps in decision-making by showcasing the relationship between what is sacrificed (costs) and what is gained (benefits). A T-shaped chart is often used where the costs are listed on one side and the benefits on the other, allowing for an easy comparison.