Marketing Mix Resource Allocation and Planning

Audit and content development updateAug. 4, 2007

Roger Kerin and Rob O’Regan

Summary

• Call for Papers

• Knowledge Audit

• Document Review– Preliminary conclusions– Potential case studies

• Potential Content Deliverables

• Next Steps

Call for Papers

1. Marketing Resource Allocation and Planning: An Overview of Models and Approaches

2. Marketing Effectiveness: Practical Approaches to Measurement and Management

3. Uncovering Marketing Resource Allocation Strategy in a B2B and B2C World

4. Strategic Allocation of Resources: Methods and Insights

5. Practical Measurement of Advertising Impact

1. Marketing Resource Allocation and Planning: An Overview of Models and Approaches

Author: Sunil Gupta, Harvard Business SchoolSummary: Increasing availability of data and the

sophistication in computing technology has enabled the development of new methods to assess the effectiveness of marketing investment. In this paper we will review the academic advances in the models and approaches for allocation of marketing resources and how they can be used by managers.

2. Marketing Effectiveness: Practical Approaches to Measurement and ManagementAuthor: Gordon Wyner, Millward BrownSummary: This article provides an overview of the

approaches companies take to understand how well their marketing investments achieve their intended business goals. It includes the "top down" analyses of the impact of marketing mix elements on market performance over time, "bottom up" approaches to understanding the value of customers, and methods for understanding the impact of individual marketing and communication levers, including new media options. The focus is on how these issues are addressed in practice and used to plan for resource allocation.

3. Uncovering Marketing Resource Allocation Strategy in a B2B and B2C WorldAuthor: V. Kumar, University of ConnecticutSummary: Proliferation of new media coupled with the lack of

justification for the ROI impact of the traditional media have forced firms to evaluate their resource allocation strategies across different media. In this paper, we identify the major trends in resource allocation in B2B and B2C firms. Next, we illustrate through specific case studies how resources are optimally allocated across various marketing activities. In the B2B scenario, we show the distribution of the resources across four direct media channels – face to face, telephone, direct mail and email. In the B2C firm, we show the allocation of resources across mass media channels: TV, Print, PR, Radio, Sampling, Promotion, etc. Finally, we review the value of such allocation and the objective function used for optimal allocation of such resources.

4. Strategic Allocation of Resources: Methods and Insights

Author: Venky Shankar, Texas A&M UniversitySummary: This article discusses how firms strategically

allocate their resources between marketing and non-marketing variables, across products and markets, and over the product life cycle. It presents resource allocation processes, models, and insights with examples and mini cases drawn from multiple companies and industries. It highlights emerging methods and research directions in strategic resource allocation and planning for both executives and researchers.

5. Practical Measurement of Advertising Impact

Authors: Anil Menon/Todd Powers, IBMSummary: This paper will cover the comprehensive

approach to creation, evolution and evaluation of advertising that IBM has employed. Modeled loosely on a hierarchy of effects "funnel" model of marketing effectiveness, the approach involves applying the appropriate measurement tools at key stages of advertising development, including creative input and evaluation, copy testing and in-market measurements. In particular, we explore the use of ad recognition techniques, "favorable selling environment" metrics, and direct ties to pipeline and revenues to demonstrate a measurable return-on-investment for advertising investments.

Knowledge Audit

• Conducted between March-May 2007• Sources included online databases (EBSCO,

Nexis, Atypon), search engines (Google, Technorati), and individual websites of more than two dozen publishers, consultancies, universities, associations, and vendors.

• Approximately 200 documents (articles, white papers, blog postings, research reports, books) selected for review.

Document Review: Preliminary Conclusions• When it comes to new media’s role in the marketing mix,

there are plenty of emerging “centers of excellence,” but little holistic perspective

• Budget allocations are shifting, slowly• Majority of new media investment is new money• Interactive efforts are still largely “test and learn” (two

main exceptions: email and search marketing)• New skills are required, but not yet prevalent • Lots of noise, but not a lot of practical advice and

direction for practitioners• Credible case studies of new media allocation are few

and far between

Money Quote

“34% of consumer media time is spent online, but only 6% of the overall marketing budget is spent online. That’s a pretty big disconnect.”

- Shar vanBoskirk, Forrester

Potential Case Studies

• P&G• General Motors• Burger King• Microsoft• Kodak

• Sony• Diageo• adidas• Verizon• HP

Potential Content Deliverables

• Book (based on solicited papers)• Reference library (from audit)• Online microsite (in conjunction with

marketingpower.com relaunch) featuring:– Articles– Blogs– Case studies– Discussion forums– Wiki

• Original research

Next Steps

•Identify specific knowledge gaps in existing material•Identify/recommend additional contributors from audit materials•Assign/edit/create additional content as needed•Receive, review and edit assigned papers•Finalize deliverables and distribution channels

Questions?

• Roger Kerin– Marketing Professor, SMU Cox School of

Business– rkerin@cox.smu.edu

• Rob O’Regan– Principal, 822 Media, LLC– rob_oregan@822-media.net