Dispelling marketing myths about Marketing ROI – Interim management

Dispelling Marketing Myths about marketing ROI

Many organisations ‘do marketing’ but as various industry surveys testify there is still concern in many organisations that they do not truly understand the value/return on their marketing or they find it confusing.

To dispel the myth, there are in fact various hard and soft metrics to help organisations measure the effectiveness of their marketing spend –

  • a lead/sales generation tool (marketing cost per ‘000 as a CPT metric),
  • net marketing contribution (NMC = £sales revenue divided by gross margin % less £sales & marketing spend),  or
  • brand affinity scores (tracked via a long-term trend tracker survey measuring changes in brand scores month by month), etc….

Media advertising is bought, planned and measured on key metrics – reach, views, frequency, coverage  measured as £CPT or PPC figures.  Increasingly marketing activity has to be integrated with all media elements delivering against their target audience and optimised for smarter marketing spend.

This myth exists not for the lack of measures or financial rigour, so why the issue?

Marketing is like the stock market – it’s a moving feast with some safe bets and some higher risks.  Like stock markets, marketing does not stand still; it needs to be planned for short and long term gains and needs continual fine-tuning to market conditions. This applies equally to private and public sectors where spend and best value are critical.

A few thoughts on getting the best out of marketing spend –

  1. ‘Pre-Nup’ Agreement
  • organisations should agree on the goals and the metric to be used upfront, so management can have a clearer understanding and expectation of results from the activity.

2. Objective Planning

  • take a step back (rather than simply repeating or tweaking last year’s plan) to reflect on what the market is doing, what competitors are likely to be doing, whether the product range and pricing strategy is optimized.  Then look at the marketing framework to see what’s working and what needs to change.

3. Driving Ownership

  • Strategic marketing should be driven and owned by organisations themselves rather than their creative agencies.  By setting out who (audience) and what (proposition) the organisation is in a better place to agree with its agencies on the how (media) and when (marketing plan).

4. Integrated Partnership

  • This is where an interim marketer can help sharpen the ‘pencil’ in terms of marketing spend efficiency and planning.  By partnering busy marketing teams, being their ‘so what’ conscience, using the techniques developed over the years, we can provide a balanced and objective marketing planning & implementation.

You can see Freda Cronks profile and full contact details on this link

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