In today’s dynamic business environment, the intersection of marketing and finance has become increasingly crucial for companies aiming to achieve sustainable growth and maximize profitability. Financial metrics used to evaluate and assess the financial performance, health, and stability of a company or an investment. Financial metrics play a pivotal role in shaping marketing strategies and assessing their effectiveness in achieving business objectives. From revenue and profitability to the cost incurred to attract new customers, various key indicators will help to identify the effectiveness of marketing activities. This paper provides an overview of the various financial metrics used in marketing activities and how the financial measures are utilised to evaluate marketing performance and inform decision-making. The paper begins by elucidating the significance of financial metrics in marketing. It then proceeds to discuss the key financial metrics commonly used in marketing and each metric is examined in terms of its definition, calculation methodology, and practical application in assessing marketing effectiveness. It also addresses the challenges associated with financial metric implementation, including data availability, accuracy, and interpretation as well as consideration for overcoming these obstacles. This study explores the integration of financial metrics into the marketing analytics framework.
MONISHA DEVARAJAN (Fri,) studied this question.