Question

Topic: Strategy

Kpis In Marketing

Posted by Anonymous on 7/24/2013 at 8:19 AM ET 125 Points
Hi, I'm working in KPIs for Marketing Unit of a medium company (12000 employees). I would like to know how many fte per million dollars of marketing budget is normal in the market? And I will appreciate to know how millions dollars is normal spend per million of revenue budget?

Do you any useful report that I can use?

Thanks a lot!!

Miguel
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RESPONSES

  • Posted by Moriarty on 7/24/2013 at 9:08 AM Accepted
    I'm afraid that there are few hard and fast rules. Your needs will be very different from practically every mid-sized business on the planet. Great for consultants, irksome for folk like you who need answers.

    More to the point, you're speaking about "marketing spend" without much thought as to what its results are. From my perspective, marketing spend without any thoughts to what it does is wasted money. There are ways to ensure that marketing is accountable, and since these methods have been around for a century it astonishes me that so few people use them.

    What are your thoughts on this? Does your business have any ways to make sure your marketing meets the most people? Maximizes returns for the spend? Let me know.
  • Posted by Gary Bloomer on 7/24/2013 at 9:06 PM Accepted
    Which market? Which niche?
  • Posted on 7/29/2013 at 1:37 AM Author
    Sorry, i've been very busy. The market is gas station, it is a petrol company. Thanks for your answers.
  • Posted by Moriarty on 7/29/2013 at 3:00 AM Member
    To be quite honest with you - given the current state of play - I doubt if this is given any weight at all. Marketing is usually seen as a 'spend' not as an investment, and so is counted as 'waste'.

    And this is in the toughest commodity market on the planet. Everybody knows your price and level of service. Moreover, they don't expect anything else.

    Why should they?

    So let's take this question into a more meaningful realm. That is to say, how could a gas company do some original, useful and effective marketing with their money?

    Now you may say this is obvious, but believe me just because it's obvious doesn't mean it's ever done. The issue is subtle, and clearly demonstrated by a young gentleman I met briefly on his way home via Amsterdam airport. He said that as a marketer in a big corporation it was so easy to forget what you were actually doing. By which he meant he spent so much time looking at numbers that he forgot what those numbers actually meant.

    Data, numbers don't just appear out of a computer. Data is generated by someone asking a question, getting an answer and writing it down. It is that simple. Keep this in mind at all times and it will help you remain focused.

    From what this young man said, most marketing departments have forgotten that they are dealing with people at all. They exist as if that data was raw and has no connection to the world outside their office. They handle it, use it and crunch it.

    My point in saying this is to bring you to the reality of marketing: it is an investment. Looked at from this point of view, you could be the company with the least spend yet have the biggest return in the industry. That is to say, your profits grow because people are using your services more. That, after all, is why people spend money on marketing.

    In a commodity market that means you need to sharpen your wits. In a market as commoditized as Gas, you need to make a razor look blunt.
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