Know-How Exchange : Research/Metrics

Cate,

Most programs we design are effective, but the problem is the client setting aside funds/manpower to follow up on leads/requests that come in.

You would think it's a no-brainer, but it's surprisingly common that they don't get around to it.

Someone here will undoubtably say we need to get a commitment before hand....and they're right. We're working on that!

Michael

Well, costs are often simplified into those which are in effect fixed in the short term (staff, basic copy creation, agency fees) and variable costs which are proportional to marketing activites (advertising, DM expense, staff to man phones when customers respond to a freephone number etc).

One other major cost which people forget is opportunity cost - the cost of not doing an activity. i.e. what will happen to our brand without investment or without that promotion?

Thanks, this all very useful stuff.
How do you categorize costs when talking to clients or to the financial team?
Do you list them all and what about opportunity cost?
How do you make this easier for non-marketers to understand?

thanks
Cate

I think the key is to use their language - i.e. a P&L when talking with the financial team. They are likely to want to go through your assumptions and this is where you can put comments on things like opportunity costs.

The P&L has all the categorisation required for a top line discussion whilst more detailed accounts would be required for an in depth analysis.

thanks for the comments so far,
but I feel that I have been using these terms already.
how do I make myself clear to clients and people who have little understanding about marketing?
thanks for your help on this
cate