Marketing Accountability: How to Measure Marketing Effectiveness Book

Acknowledgements ix

Introduction 1

1 It's tough at the top-CEOs are finally demanding accountability for marketing expenditure 5

Summary 5

1.1 The growing importance of intangible assets 6

1.2 The marketing investment time lag and profit and loss accounts 11

1.3 The tyranny of forecasts and budgets and the consequences 14

References 21

2 Strategic marketing planning - a brief overview 22

Summary 22

2.1 Introduction 22

2.2 Positioning marketing planning with marketing 23

2.3 The marketing planning process 26

2.4 How formal should this process be? 27

2.5 What should appear in a strategic marketing plan? 40

2.6 How the marketing planning process works 42

2.7 Guidelines for effective marketing planning 44

2.8 Twelve guidelines for effective marketing 46

2.9 Conclusions 53

References 54

3 A three-level marketing accountability framework 55

Summary 55

3.1 Introduction 55

3.2 A three-level marketing accountability framework 56

3.3 Three distinct levels for measuring marketing effectiveness 61

3.4 Level 2: linking activities and attitudes to outcomes 67

3.5 Level 3: micro measurement 71

Acknowledgement 71

References 72

4 A process of Marketing Due Diligence 73

Summary 73

4.1 What is the connection between marketing and shareholder value? 74

4.2 What is the Marketing Due Diligence diagnostic process? 77

4.3 Implications of the Marketing Due Diligence process 90

4.4 The linkage of strategy risk to shareholder value 91

4.5 The risk and return relationship 92

4.6 A focus on absolute returns rather than risk 93

4.7 Alignment with capital markets 97

4.8 Turning Marketing Due Diligence into a financial value 98

4.9Highlighting deficiencies and key risks 101

4.10 Implications for users 102

Acknowledgements 103

5 The Marketing Metrics model and process 104

Summary 104

5.1 Introduction 104

5.2 Overview of the Marketing Metrics model 107

5.3 Implementing the Marketing Metrics model 112

5.4 The workshop team 117

References 118

6 Segmentation - the basic building block for markets 119

Summary 119

6.1 Introduction 120

6.2 Markets we sell to 122

6.3 Stage 1 - defining the market 132

6.4 Stage 2 - who specifies what, where, when and how 136

6.5 Case studies 143

6.6 Segmentation and the Metrics model 156

References 161

7 How to become the first choice for the customers you want 163

Summary 163

7.1 What are impact factors? 164

7.2 Qualifying factors 165

7.3 Competitive advantage factors (CAFs) 168

7.4 Productivity factors 172

7.5 Analysing impact factors: a strategy-based alternative 178

7.6 Impact factors: using 'gap' analysis for creating organizational alignment 180

7.7 Helpful pointers 183

References 184

8 Turning strategy into action, and measuring outcomes 185

Summary 185

8.1 Developing action plans 186

8.2 Developing the budget 190

8.3 Budget templates 196

8.4 Establishing linkages 198

8.5 In conclusion 204

References 204

9 Delivering accountability - finalizing the metrics strategy 205

Summary 205

9.1 Developing metrics that matter 206

9.2 Auditing for success 208

9.3 Bringing it all together 209

References 214

10 Why data quality can make or break accountability 215

Summary 215

10.1 The importance of data quality 216

10.2 Are data the weakest link in your marketing strategy? 217

10.3 Data and competitive advantage 217

10.4 Data literacy 219

10.5 Challenges to data integration 219

10.6 Creating a business case (return on investment) for data quality 221

10.7 Creating insight 221

10.8 Technology 223

10.9 Success factors 223

10.10 Identifying the cost of poor data quality 224

10.11 Data management strategy 226

10.12 Why an enterprise-wide approach to data management is vital 228

10.13 Developing an enterprise-wide information strategy 229

10.14 Data governance 231

References 235

11 Measuring the effectiveness of multichannel strategies Hugh Wilson 236

11.1 Introduction 236

11.2 Breaking down conversion metrics by the buying cycle 238

11.3 Tracking cross-channel behaviour 240

11.4 Assessing the overall performance of the route to market 248

11.5 Metrics for the multichannel boardroom 250

11.6 Steering by the stars 256

Acknowledgements 256

References 257

12 Valuing brands David Haigh 258

12.1 Introduction 258

12.2 Intangible assets: driving corporate value in the 21st century 259

12.3 What do we mean by 'brand'? 263

12.4 The approach to 'brand' and intangible asset valuations 264

12.5 Conclusion: financial implications for brands 277

Appendix: Econometrics 279

Bryan Finn and David Merrick, Business Economics Limited Index 283