Maximizing Marketing ROI

Published by: American Productivity & Quality Center

Published: Dec. 11, 2001 - 80 Pages

Table of Contents

• AT&T Corp.
• Colgate-Palmolive
• Kraft Foods
• The Minute Maid Company

Abstract

KEY FINDINGS

• The pressure is on marketing to demonstrate a quantifiable return and on CEOs
to deliver value to their stockholders and business alliance partners. While managing those stresses, they can't forget that delivering value to customers is a critical requirement for profitability. CEOs are relying on their marketing heads to be more productive stewards of a large share of the corporate budget for which they are responsible.
• ROI-based marketing is sought by more marketers. The development of econometric
marketing mix models (MMM) has enabled best-practice organizations to gain a competitive advantage and increase profitability in a fairly short time. When they have systems in place for an ongoing assessment of alternatives, they have found less need to conduct special studies. And even when additional research is necessary, the interpretation of that research is more rapidly accomplished, which leads to more actionable recommendations. Because ROI-based marketing provides a framework for addressing decisions, it leads to consistent approaches and reduces second guessing. If the management team fully embraces ROI-based marketing, as well as their counterparts' judgments, consensus is reached more readily. This leads to faster marketplace reactions.
• ROI process works best with ongoing programs and interdisciplinary teams. The
team concept involves fluid interaction among marketing, research, media, finance, and others. Team work is essential, as is expertise from research analysts. When ROI-based systems are ongoing, they are an integrated component of budget planning, recommending, and revising. Consequently, they become more consistent contributors to decision making; decision makers find the information they need waiting for them, rather than a requisition process away.
• ROI-based models encourage decision makers to challenge and revise the budgeting
processes. The modeling process can develop principles of successful marketing. Researchers and decision makers can then develop new mental models that positively influence decision making beyond the immediate influence of the ROI-based models. The common language and discipline across the firm facilitates the drive for research functional excellence, even in a decentralized organization.

About MarketResearch.com
MarketResearch.com is an online aggregator selling over 160,000 market research reports, company profiles and country profiles from over 600 research firms. Our reports will provide you with the critical business and competitive intelligence you need for strategic planning and marketing research. Coverage includes the US, UK, Europe, Asia and global markets.