Fashion Marketing ROI and Profitability

Description: Fashion Marketing ROI and Profitability Quiz
Number of Questions: 15
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Tags: fashion marketing roi profitability
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Which of the following is NOT a key performance indicator (KPI) for measuring the ROI of a fashion marketing campaign?

  1. Sales revenue

  2. Customer acquisition cost

  3. Website traffic

  4. Brand awareness


Correct Option: C
Explanation:

Website traffic is not a direct measure of ROI, as it does not directly contribute to sales or revenue.

What is the formula for calculating the ROI of a fashion marketing campaign?

  1. ROI = (Sales revenue - Marketing costs) / Marketing costs

  2. ROI = (Sales revenue + Marketing costs) / Marketing costs

  3. ROI = (Sales revenue - Marketing costs) / Sales revenue

  4. ROI = (Sales revenue + Marketing costs) / Sales revenue


Correct Option: A
Explanation:

ROI is calculated by dividing the net profit (sales revenue minus marketing costs) by the marketing costs.

Which of the following is NOT a factor that can affect the profitability of a fashion marketing campaign?

  1. Target audience

  2. Marketing channels

  3. Brand image

  4. Economic conditions


Correct Option: D
Explanation:

Economic conditions are not directly controllable by the fashion marketer, and therefore cannot be directly influenced to improve profitability.

Which of the following is NOT a strategy for increasing the profitability of a fashion marketing campaign?

  1. Targeting a niche market

  2. Using social media influencers

  3. Offering discounts and promotions

  4. Increasing the marketing budget


Correct Option: D
Explanation:

Increasing the marketing budget does not necessarily lead to increased profitability, as it may not result in a proportional increase in sales revenue.

Which of the following is NOT a benefit of using data analytics to measure the ROI of a fashion marketing campaign?

  1. Improved decision-making

  2. Increased efficiency

  3. Reduced costs

  4. Increased sales


Correct Option: D
Explanation:

Increased sales is not a direct benefit of using data analytics to measure ROI, as it is a result of effective marketing strategies and tactics.

What is the term for the process of evaluating the effectiveness of a fashion marketing campaign?

  1. Campaign analysis

  2. Performance measurement

  3. ROI assessment

  4. Profitability analysis


Correct Option: A
Explanation:

Campaign analysis is the process of evaluating the effectiveness of a marketing campaign, including its ROI and profitability.

Which of the following is NOT a type of cost associated with a fashion marketing campaign?

  1. Production costs

  2. Marketing costs

  3. Distribution costs

  4. Customer acquisition costs


Correct Option: A
Explanation:

Production costs are not directly associated with marketing campaigns, as they are incurred during the manufacturing process.

What is the term for the amount of money a fashion company makes from each sale?

  1. Profit margin

  2. Gross profit

  3. Net profit

  4. Revenue


Correct Option: A
Explanation:

Profit margin is the amount of money a company makes from each sale, calculated as a percentage of the sales price.

Which of the following is NOT a strategy for increasing the ROI of a fashion marketing campaign?

  1. Targeting a specific customer segment

  2. Using social media advertising

  3. Offering free shipping

  4. Increasing the price of products


Correct Option: D
Explanation:

Increasing the price of products may lead to decreased sales and lower ROI, as consumers may be less likely to purchase products at a higher price.

Which of the following is NOT a benefit of using influencer marketing in a fashion marketing campaign?

  1. Increased brand awareness

  2. Improved customer engagement

  3. Increased sales

  4. Reduced marketing costs


Correct Option: D
Explanation:

Reduced marketing costs is not a direct benefit of using influencer marketing, as it may actually increase costs due to the fees paid to influencers.

What is the term for the process of measuring the effectiveness of a fashion marketing campaign?

  1. Campaign evaluation

  2. Performance analysis

  3. ROI assessment

  4. Profitability analysis


Correct Option: A
Explanation:

Campaign evaluation is the process of measuring the effectiveness of a marketing campaign, including its ROI and profitability.

Which of the following is NOT a key factor to consider when evaluating the profitability of a fashion marketing campaign?

  1. Sales revenue

  2. Marketing costs

  3. Customer lifetime value

  4. Brand equity


Correct Option: D
Explanation:

Brand equity is not a direct factor in evaluating the profitability of a marketing campaign, as it is a long-term asset that may not directly contribute to short-term profitability.

Which of the following is NOT a strategy for increasing the profitability of a fashion marketing campaign?

  1. Targeting a niche market

  2. Using social media advertising

  3. Offering discounts and promotions

  4. Reducing the marketing budget


Correct Option: D
Explanation:

Reducing the marketing budget may lead to decreased sales and lower profitability, as it may limit the reach and effectiveness of the marketing campaign.

Which of the following is NOT a benefit of using data analytics to measure the ROI of a fashion marketing campaign?

  1. Improved decision-making

  2. Increased efficiency

  3. Reduced costs

  4. Increased brand awareness


Correct Option: D
Explanation:

Increased brand awareness is not a direct benefit of using data analytics to measure ROI, as it is a result of effective marketing strategies and tactics.

What is the term for the amount of money a fashion company spends on marketing and advertising?

  1. Marketing budget

  2. Advertising budget

  3. Promotional budget

  4. Communication budget


Correct Option: A
Explanation:

Marketing budget is the amount of money a company allocates for marketing and advertising activities.

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