Marketing departments are notorious for not being able to explain their value to the company. Many CEOs, driven by pressure from boards and investors, are now demanding greater financial accountability from their marketing departments.
We believe the marketing department is financially accountable to the same degree as manufacturing, purchasing, human resources and all company functions. The tools of understanding marketing finance include the marketing budget, marketing ROI and other marketing performance measurements.
For most products and services, people need to see the brand and message at least five times before they even register you exist, let alone consider a purchase. And in today's world they need to see it in a trusted venue, something they invite into their personal or professional lives.
What must you spend to market your product or service? Thanks to the internet there are now hundreds of marketing channels and creative options from which to choose, which requires extensive knowledge about how to sort through the options and estimate the financial returns of appearing in those selected. Since it's difficult for most companies to compare and contrast these choices sensibly, however, they tend to pick their marketing mix more by intuition and past experience than anything else.
The problem with intuition and past experience is that they are based on what worked yesterday and do not take into account important new marketing channels that evolve on almost a daily basis now. Plus the single most ubiquitous and cost efficient marketing channel today, the internet, changes on a daily basis.
This makes it quite difficult to estimate the true cost of marketing something new. We can help you create a model of your marketing fixed and variable costs. We can measure the results of your marketing and report them in clear terms that CFOs, boards, investors and other budget influencers understand. Once you have the metrics you can begin prioritizing your marketing spend based on data...not intuition.
Once you know, the answers become clear.
People And Processes
Poor Information Led To Poor Plans