managing your marketing roi

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Please visit: http://www.Marketing-Calculator.com

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A brief overview of key concepts to help defend you marketing budgets and improve your tactical and strategic marketing decision making

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Page 1: Managing Your Marketing Roi

Please visit: http://www.Marketing-Calculator.com

Page 2: Managing Your Marketing Roi

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Marketing ROI is one of top strategies

• The top four ranked ‘back-to-basics strategies’• Each increased from four to 12 percentage

over prior year

79% 76%65% 61%

Top-Rank %-age

Source: Economy Weighs Heavily on Marketing Execs for 2009 Study: Top-Level Marketers Focused on Back-to-Basics Strategy, Struggling With Digital Concepts by Beth Snyder Bulik, Advertising Age Jan 8, 2009. Emphasis added.

Page 3: Managing Your Marketing Roi

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Marketing ROI definition unclear

Is it – • Better financial returns?• Backward looking or forward looking?• Short or long term?• Improved branding?

Page 4: Managing Your Marketing Roi

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Marketers use different tools

Consumer Marketers• Marketing mix• Mass media• Social marketing

B2B Marketers• Lead generation• Direct response

marketing• Marketing & sales

coordination

Page 5: Managing Your Marketing Roi

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Definition: Marketing ROIThe purpose of

Return on Marketing Investment (ROMI)

is to optimize Marketing Spend

for the Short and Long term

in support of the Brand Strategy

by building a Market Model

using valid, objective Marketing Metrics and Analytics

Page 6: Managing Your Marketing Roi

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3 Key marketing ROI concepts• Marketing effectiveness framework• Marketing effectiveness continuum• Marketing effectiveness culture

Page 7: Managing Your Marketing Roi

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Marketing effectiveness framework• Marketing effectiveness has many leverage

points

Strategy

Creative

Execution Marketing Mix Programs

Exogenous Factors

Page 8: Managing Your Marketing Roi

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Marketing effectiveness framework• Customer centricity is a key component to

drive ROI

Information Processing

Shopping

Brand Preferences

Channel Preferences

Segments

Page 9: Managing Your Marketing Roi

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Marketing effectiveness continuumAc tivi ty Trac kers

Campaign Measurers

Mix Modelers

Consumer Analyzers

Brand Optimizers

• Most marketers act at the lowest levels, with little data and analysis

• Those marketers operating at higher levels make improved decisions

Increasing ROMI Sophistication

Page 10: Managing Your Marketing Roi

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Marketing effectiveness culture• Improving marketing ROI requires a change in

organizational culture

Metrics & Measurement

Modeling & Budgeting

Monitoring & Management

Page 11: Managing Your Marketing Roi

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A sampling of DemandROMI projects Quick Serve Restaurant

– 8% projected revenue increase (~$25M) – with no increase in marketing investment

Major Software Provider– Identified the 50% of the marketing budget being wasted

Consumer Package Goods– Product launch marketing mix mismatch cost 2% market share (worth

a 40% increase in revenue)

Where else can you get that type of return on any other marketing investment?

Page 12: Managing Your Marketing Roi

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For more information…Guy R. Powell – [email protected]: Marketing-Calculator.comBlog: MarketingTactegy.com

DemandROMIProve and improve your marketing effectiveness

404-816-4344www.DemandROMI.com