Look at the some of the fundamental information you collect to guide the strategic market planning process: customer intelligence, competitive intelligence and market intelligence.
Marketers use this intelligence as insight into the types of strategies that are likely to be successful. Bringing financial intelligence into the mix offers new insight into the potential value of strategic and tactical alternatives and also leads to a disciplined approach to marketing campaign development.
With solid marketing return on investment (ROI) techniques and planning tools in place, marketers can improve the effectiveness and profitability of their campaigns.
Marketing ROI as the Core Measure
Traditional marketing measures such as response rates, cost per lead and brand impressions do not capture the complete view of both the incremental profits generated and the expenses invested. Even objectives such as increased customer loyalty must be balanced with appropriate spending levels to ensure that the business generates an acceptable ROI.
Only marketing ROI measures can deliver insight and analysis with sound financial integrity that meet the needs and expectations of the CFO, CEO and the Board of Directors.
For marketers, getting in sync with the objectives of senior executives is not only a business necessity but also a significant advantage. Companies with marketing ROI processes in place experience faster decision-making, support for additional budget funding, and greater respect for their contributions.
Plus, the increased insight into profitability leads to stronger strategies and more precise planning. It is critical to cut the excessive waste of marketing dollars that is abundant in most businesses. Efforts must be concentrated on winning the greatest share—not of customers or revenues—but profits, which benefits shareholders, customers and employees.