This workshop was created to provide a framework for thinking about and measuring marketing investment.
For more marketing advice, contact info@hawkpartners.com
2. Workshop Objectives
The goal of this workshop is to p
g p provide a framework and approach to thinking
pp g
about measuring marketing investment by:
Discussing the overall goals of marketing measurement programs
Exploring the pros/cons of measurement systems and specific metrics
Using various case studies and exercises to practice measurement
identification and selection
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3. Setting the Stage
An introductory discussion of measurement…
y
How should college admissions be decided?
How should marketers decide between programs?
Is marketing an art or science?
– Why does this matter?
ROI of college education?
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Is ROI a puzzle or a mystery?
INTRODUCTORY DISCUSSION CUSTOMIZED TO CLIENT INDUSTRY
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4. What is Marketing?
Marketing – the Original AMA Definition (1935)
“The performance of business activities that direct the flow of goods
and services from producers to consumers.”
Marketing – the New AMA Definition (2004)
“A set of processes for creating, communicating and delivering value
to customers ”
customers.
A Better Definition?
Anticipating the future needs and wants of a target market and
learning how to deliver value and how best to communicate what will
be relevant about that value to the target.
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5. Exercise – Benefits and Obstacles to Measurement
Why Measure? Why Not Measure?
Why Are Measurement Programs Necessary?
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6. Time Frame Matters
What is the timeframe under consideration for measurement?
Prospective/planning
Mid stream
Mid-stream
Retrospective
Short-term vs. longer-term
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7. Team Exercise (for Business Unit Teams)
Team Assignment:
– P
Pros/cons of “The Ultimate Q
/ f “Th Ulti t Question”
ti ”
– Is customer satisfaction the right focal point?
– One measure (for marcom and other marketing) vs. two, or more
– Same measure for each Business Unit?
STRUCTURE AND QUESTIONS FOR EXERCISE CUSTOMIZED FOR CLIENTS
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9. Considerations in Use of Metrics
Issues to Consider When Leveraging Metrics
Marketing metrics separate from business metrics
– What is unique contribution of marketing?
Measurement related to multiple audiences
– Intermediaries
– End user(s)/segments
– Sales channel(s)/people
– Influencers
f
Matching marketing spend to business priorities
CUSTOMIZED TO CLIENT INDUSTRY/SALES DYNAMICS
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10. Types of Measures Used for ROI Across Different
Industries
Share price Share price
Direct-to-sales Revenues versus spending
Purchase patterns Share of wallet
Direct-to-norm (or competitor) Clicks
Revenue change vs. budget change Awareness
Referrals Attitudes (esp. leadership)
Customer “asset” value Reach
Acquisition, development and/or retention
Loyalty/retention
Brand equity
Purchase patterns
Awareness
Referrals
R f l
Attitudes toward purchase
Attitudes toward company/brand Reasons for sales
Tests/experimental design Market share
Internal survey Spending vs. norms, competitors
Internal leadership survey Results vs. norms, competitors
Sales Brand equity
Savings (e.g., decreased cost of sales) Trust equity
Leads/inquiries Customer asset
Redemptions Revenues
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11. The Marketing Conversion Funnel
Marketing is ultimately about influencing target audience behavior
Target Audience Conversion Funnel Typical Questions
Awareness • Where are the key bottlenecks?
• What are causing these
Consideration
bottlenecks?
Preference • How do we invest to overcome
these bottlenecks?
Choice
Loyalty
Recommendation
eco e dat o
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12. Metric Segments
Products/Services
Current Prospects
Current
Customers
gets
Prospects
Targ
Intermediaries
CUSTOMIZED TO CLIENT INDUSTRY/SALES DYNAMICS
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13. Team Exercise: Using the Methodology
Case Study: BMW Films
How would you measure the ROI?
• BMW car is a “star” emphasizing its
star
driving performance without
mentioning the brand
• Link to contemporary actors (Clive
Owen, Madonna
Owen Madonna, Don Cheadle)
and directors (John Woo, Ang Lee)
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14. How the Methodology Works
100 Prospects 100 Current
Clients
Target Audience Conversion Funnel Assumptions to be Assumptions to be
proven proven
Awareness
40 80
Consideration
20 60
50% of aware 75% of aware
Preference
15 50
75% of familiar 87% of familiar
Choice
5 40
33% of accepting 80% of accepting
Loyalty 1 10
20% of preference 25% of preference
Recommendation
-- 10
All of L
f Loyal
l
CUSTOMIZED TO CLIENT INDUSTRY/SALES DYNAMICS
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15. Key Success Factors
Gain consensus
“Generally right”
Describe reason(s) and uses for each metric
Memorialize the rationale and then the learning
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