A brief overview of key concepts to help defend you marketing budgets and improve your tactical and strategic marketing decision making

1. Please visit: http://www.Marketing-Calculator.com

2. Marketing ROI is one of top strategies
79% 76%
65% 61%
Customer Satisfaction Customer Retention
Marketing ROI Brand Loyalty
• The top four ranked ‘back-to-basics strategies’
• Each increased from four to 12 percentage
over prior year
Source: Economy Weighs Heavily on Marketing Execs for 2009 Study: Top-Level Marketers Focused on Back-to-Basics Strategy, Struggling With Digital Concepts by
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Beth Snyder Bulik, Advertising Age Jan 8, 2009. Emphasis added.

3. Marketing ROI definition unclear
Is it –
• Better financial returns?
• Backward looking or forward looking?
• Short or long term?
• Improved branding?
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4. Marketers use different tools
Consumer Marketers B2B Marketers
• Marketing mix • Lead generation
• Mass media • Direct response
marketing
• Social marketing
• Marketing & sales
coordination
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5. Definition: Marketing ROI
The purpose of
Return on Marketing Investment (ROMI)
is to optimize Marketing Spend
for the Short and Long term
in support of the Brand Strategy
by building a Market Model
using valid, objective Marketing Metrics and Analytics
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6. 3 Key marketing ROI concepts
• Marketing effectiveness framework
• Marketing effectiveness continuum
• Marketing effectiveness culture
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7. Marketing effectiveness framework
• Marketing effectiveness has many leverage
points
Strategy
Exogenous
Creative Factors
Marketing
Execution Programs
Mix
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8. Marketing effectiveness framework
• Customer centricity is a key component to
drive ROI
Information Brand
Processing Preferences
Channel
Shopping Preferences
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9. Marketing effectiveness continuum
• Most marketers act at the lowest levels, with little
data and analysis Brand
Optimizers
Consumer
Analyzers
Mix
Modelers
Campaign
Measurers
Activity
Trackers
Increasing ROMI Sophistication
• Those marketers operating at higher levels make
improved decisions
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10. Marketing effectiveness culture
• Improving marketing ROI requires a change in
organizational culture
Modeling & Metrics & Monitoring &
Budgeting Measurement Management
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11. A sampling of DemandROMI projects
Quick Serve Restaurant
– 8% projected revenue increase (~$25M) – with no increase in
marketing investment
Major Software Provider
– Identified the 50% of the marketing budget being wasted
Consumer Package Goods
– Product launch marketing mix mismatch cost 2% market share (worth
a 40% increase in revenue)
Where else can you get that type of return on any other
marketing investment?
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12. For more information…
Guy R. Powell – gpowell@DemandROMI.com
Book: Marketing-Calculator.com
Blog: MarketingTactegy.com
DemandROMI
Prove and improve your marketing effectiveness
404-816-4344
www.DemandROMI.com
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