*Required.
|
 Marketing
Calculator Key Concepts
Marketing Calculator introduces a number of key concepts to build a marketing infrastructure
to improve a marketer's strategic and tactical decision making based on sound data
and analytics. The following concepts represent a few ideas that you will
find in Marketing Calculator:
Marketing Effectiveness Framework
There are three critical activities that can drive improved marketing effectiveness:
- Strategy - Having the right strategy should always deliver better
results in the marketplace. Improving marketing effectiveness has to do with
how that strategy gets executed in the market. With the right data and analytics,
marketers can improve their execution to deliver great results.
-
Creative - Good creative concepts can drive improved marketing effectiveness.
Great creative can change the industry. Having the right data can help support
the company in making the right decisions, but it's still up to the agency to deliver
that great message to the target audience to inspire them to action.
-
Execution - Execution must be considered in context of the mix as well
as the effectiveness of the specific program.
The marketing effectiveness framework structures how marketers can organize their
data collection and infrastructure to make the right decisions and communicate their
results to the rest of the company.
Marketing Effectiveness Continuum
The marketing effectiveness continuum classifies marketers into 5 broad categories.
Each represents steps that can be taken to lead to continuing improvement in delviering
on their strategies and tactics. These five levels are:
- Activity Trackers - At this level marketers can track their activities
looking into the past and planning into the future. This includes all types
of media, pricing and other elements across the 4P3C1E framework.
- Campaign
Measurers - In many cases just measuring the singular reponse to a particular
campaign can improve a marketer's decision making. It ignores critical aspects
of synergy, halo and cannibalization but can still deliver good insight for decision
making.
- Mix Modelers - At this level marketers can measure
the effectiveness of all marketing activities across the 4Ps. It includes
synergy, halo and other elements not possible when measuring only the direct response
to a specific campaign.
- Consumer Analyzers - At this level,
marketers can look at the market with all of its dynamics and plan to optimize for
the future, not just measuring marketing ROI from the past.
- Brand Optimizers
- When measuring marketing ROI at this level marketers' activites not only drive
revenue, profit and share but also share price. In order to holistically measure
the true value of marketing, the incremental value in the share price would also
need to be a part of the equation.
Marketing Effectiveness Culture
The marketing effectiveness culture brings the marketing effectiveness framework
and continuum together to drive increased revenue for every marketing dollar invested.
It has three primary dimensions:
- Measurement and metrics
- Modeling and simulation
- Management and
monitoring
The marketing effectiveness culture is made up of the consistent and appropriate
application of these three dimensions across all of marketing.
4P3C1E Framework
The 4P3C1E framework puts the data collection into a systematic approach.
It is based on:
- The 4Ps (Kotler) - Product, Price, Place and Promotion across
the category
- The 3 Cs - Customer, Competitor and Channel.
Whereas the Place P covers the distribution channel actions taken by the competitiors
in the channel, this Channel "C" refers to actions taken by the channel itself (e.g.,
its own advertising, store growth, etc.)
- 1E - Exogenous factors
are critical in many industries in determining true marketing effectiveness.
-
Outcomes - Implicit in the 4P3C1E framework are the outcomes variables
or success variables. For example, these could be revenue, profit or share,
but also, trial, awareness and other interim variables.
Last Touch Attribution
Quite often campaign measurers use ‘last touch attribution’. Last touch attribution
generally ignores the impact of all other prior or simultaneous touches. If a prospect
receives three newsletters, sees an advertisement on television, but finally purchases
through the 800-number using an offer code provided on a direct mail piece, for
most companies the full weight of the purchase is attributed to that single direct
mail piece. But what is the incremental lift from the television advertising and
the prior newsletters? Last touch attribution is a highly valuable method to determine
the effectiveness of direct response campaigns. It does, however, ignore all other
touches received by the customer. Synergies are ignored, along with the incremental
value of the brand, in determining ROI. Nevertheless, it is a valid method for direct
response marketing managers to use to improve the marketing effectiveness of their
particular media channels. (excerpted)
|
|