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Showing posts with the label Transactional Theory

Pure Michigan Campaign-The Value of Return on Investment to State Taxes

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" Business has only two functions-Marketing and Innovation " (Milan Kundera ).    Pure Michigan, a state sponsored national marketing campaign launched in 2008, created a buzz highlighting the attributes of the Lady of the Lake state. Law Makers are confounded on precisely how much (or little) the campaign has contributed to her prestige and prosperity. Expert numbers span the spectrum leaving doubts and in turn a line item veto that removed the program from state budgets. This article is an effort to shed light on the merit of state-sponsored marketing in Michigan and what policies will improve the transparency and functioning of the program. To assess the program's value we must ask ourselves two fundamental questions about Pure Michigan to better ensure the money is wisely spent. 1. Does it have a positive ROI? and 2. Does it have a negative ROI? A positive ROI could mean we should invest in it because it brings additional revenue while a negative ROI means its wast