What is a key characteristic of treating marketing as a long-term investment?

Question

BlackTom AI · Accepted Answer

Question restatement: What is a key characteristic of treating marketing as a long-term investment?

Option 1: 'Marketing activities are aimed at generating sustained brand equity and customer loyalty' This aligns with the long-term view of marketing, where investments are expected to build lasting brand value and repeat customer relationships rather than just immediate sales.

Option 2: 'The value of marketing efforts is reflected immediately on the income statement' This describes a short-term accounting perspective, not a long-horizon investment mindset. Long-term marketing investments may not yield immediate accounting gains and are often capitalized or amortized in strategic planning.

Option 3: 'Campaign performance is assessed solely by short-term ROI' Relying only on short-term ROI ignores the ongoing, compounding benefits of brand building and customer loyalty that accrue over time, which is contrary to treating marketing as a long-term investment.

Option 4: 'Marketing spend is fully expensed in the year it is incurred' Expensing all marketing spend upfront disregards the enduring effects of branding and relationships, which are expected to deliver benefits beyond a single year and may require capitalization or gradual recognition.

In summary, option 1 best captures the essence of viewing marketing as a long-term investment, emphasizing durable brand equity and loyalty development, while the other options reflect short-term or misaligned accounting perspectives that underestimate the lasting impact of marketing activities.

2025FA_IMC_402-0_SEC20 Final Exam

What is a key characteristic of treating marketing as a long-term investment?

View Explanation

Log in for full answers

Similar Questions

To execute an effective omni-channel marketing strategy, all of the following elements must be aligned EXCEPT ________.

Market data shows that while 68% of consumers say they’ll pay more for sustainable meals, only 22% actually do. Which strategic implication follows from this insight?

Which of the following is a true statement about the front end of marketing?

In the context of ‘Creating and capturing customer value’,according to Armstrong et al. (2015) a customer-driven strategy is closely linked to the selling concept.

In the context of ‘Creating and capturing customer value’,according to Armstrong et al. (2015) a customer-driven strategy is closely linked to the selling concept.

The marketing manager of Refresh Inc., a leading producer of soft drinks, is considering a differentiated marketing strategy. An important consideration is weighing increased sales against ________ before selecting this strategy.

More Practical Tools for Students Powered by AI Study Helper

Homework AI Solver

Stylized AI Paper Writer

Plagiarism Checker Assistant

Citation AI Academic Writing Tool

In-Class Translation Assistant

AI Note Generator

AI Quiz Answers

Past Exam Questions from University Test Bank

Smart Practice Assistant

Adaptive Practice

Making Your Study Simpler