Remove Cost of Capital Remove Goal Remove Marketing Remove Short-term
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A Refresher on Marketing ROI

Harvard Business Review

Companies spend a lot on marketing communications. And more fundamentally, does marketing actually work? Marketing ROI analysis can help answer those questions. What is Marketing ROI, and How Do Companies Use It? Avery explains that it is also referred to by its acronym, MROI, or as return on marketing investment (ROMI).

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How CMOs Can Get CFOs on Their Side

Harvard Business Review

Marketing is in the midst of an ROI revolution. The arrival of advanced analytics and plentiful data have allowed marketers to demonstrate return on investment with a degree of precision that’s never been possible before. To date, however, the reality of marketing analytics has fallen short of the promise.

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What Shareholder Value is Really About

Harvard Business Review

Second, he or she needs to understand how capital markets work. Critics imply that managing for shareholder value is all about maximizing the short-term stock price. Companies that manage for shareholder value, the thinking goes, do whatever it takes to engineer an ever-higher market price.

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How to Quantify Sustainability’s Impact on Your Bottom Line

Harvard Business Review

But we recognize that, in many businesses, resources are often allocated according to short-term, bottom-line pressures. of the world market, and the second-largest beef producer and consumer. These values can be estimated credibly and cost-effectively, and we set about applying them to the Brazilian beef sector.

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4 Ways Leaders Can Get More from Their Company’s Innovation Efforts

Harvard Business Review

Even if executives try to prioritize it, innovation often gets crowded out by more “urgent” short-term pressures. For any business to succeed over the long term, it must earn a return that exceeds its cost of capital. Here are four things leaders can do. Don’t Get Trapped in Your P&L.

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An HBR Refresher on Breakeven Quantity

Harvard Business Review

Marketers often have to make the call on whether a certain marketing investment is worth the cost. Can you justify the price tag of the ad you want to buy or the marketing campaign you’re hoping to launch next quarter? The variable costs to make each pair of flip flops are $14.00. How do you calculate it?

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Why Sit on All that Cash? Firms Uncertain on Cost of Capital

Harvard Business Review

With a record $2 trillion in cash and short-term liquid assets on hand, U.S. Many are deeply uncertain about which initiatives they should fund — and one root of this indecision is a general lack of confidence in the cost of capital projections they are using to make the call. What's holding them back?