Which of the following metrics assesses the financial return of marketing efforts?

Study for the Arizona State University MKT302 exam. Utilize practice quizzes, flashcards, and detailed hints to understand applied marketing management concepts. Prepare effectively for success!

The metric that assesses the financial return of marketing efforts is return on investment (ROI). ROI specifically measures the profitability of investments made in marketing by comparing the gain or loss generated relative to the investment's cost. It provides a quantifiable way to evaluate the effectiveness of marketing strategies, helping businesses understand how much revenue is generated for each dollar spent on their marketing campaigns.

In contrast, customer lifetime value (CLV) estimates the total revenue a business can expect from a single customer over the duration of their relationship, which is more focused on long-term value rather than immediate financial return. Market share indicates the percentage of an industry or market that a company controls, providing insights into competitive positioning rather than direct financial returns on marketing expenditures. Customer acquisition cost (CAC) refers to the cost associated with acquiring a new customer; while it is a critical metric for assessing marketing efficiency, it does not provide a direct measure of financial returns like ROI does.

Thus, ROI stands out as the most relevant metric for assessing the financial effectiveness of marketing efforts.

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