2. Background
Marketers CFOs
• 8/10 believe their • I have never found CFO
marketing budgets are that didn’t believe a lot of
under-funded marketing investments
are wasted
But 75% of the value of most companies
is the Brand… so maybe there is some
common ground
4. What is the biggest issue …
• People don’t know and are not measuring
Without measurement R or I
It doesn’t make sense to talk
▫ R = Return About techniques
▫ I = Investment
• Because it is difficult, does not mean it should not be
done… or you shouldn’t worry about it..
4
5. Which is closest to your company’s current
definition of marketing ROI? description
Cus tom er lifetim e value 17
Financial value of brand equity 19
Media pos t buy analys is 21
Cos t per s ale 23
GRPs delivered 30
Reach/frequency 30
Cos t per lead 34
Ratio of ad cos t to revenue In 34
Num ber of leads 40
Market s hare 49
Attitudinal changes 51
Purchas e intent 55
Total s ales from m arketing 55
Changes in brand awarenes s 57
Increm ental s ales 66
Source: ANA – Forrester 2005
If a perfect world you would measure profits
you can also measure profit drivers …
5
9. According to nielsen research
• A study of 862 packaged
goods promotions.
▫ 50% no impact,
▫ less than 1 in 10, plus 10%
As long as you are not measuring what is working
You are burning money…
9
10. Finance people can improve
marketing decisions
You might not want to get involved
but you should
11. Diversity trumps ability
• Imagine you have 2 groups
▫ 10 smartest people
▫ 10 random people
• The random groups almost
always outperforms
▫ A different toolset
▫ “Stupid” questions that
spark thinking
11
12. Solving marketing problems…
• Research at KU Leuven over 2 years…
10 groups working on 10 marketing tasks
▫ All non-marketers
▫ All male marketers
▫ All female marketers Relative results
▫ Mixed marketers Absolute results
▫ Mixed marketers + non-marketers
12
14. Half my advertising doesn’t work..
That would be a bit optimistic
Depending on the study…
80-90% of advertising
does not work…
Why ….
▫ Lack of a benefit
▫ No reason to believe
▫ No call to action If you’re confused…
▫ No clear message Consumers are also likely
to confused
14
17. A golden rule of advertising
Let a customer say NO
because what you offer
doesn’t apply to them.
But NEVER let a customer say
NO because
they don’t understand
what you’re offering.
17
19. My shoot the puppy
checklist
• Is there a benefit (real or
perceived)
• People willing to pay (enough)
• Cost of cut-through acceptable
• People will see the benefit buy
again / recommend to others
• Will someone hate the product
19
25. Less is more !
• Proctor & Gamble reduced the number of Head and
Shoulders SKUs to 15 from 26, eliminating the least
popular varieties, and saw an increase in sales of
10%
• The Golden Cat Corp. eliminated 10 of its worst-
selling kitty-litter SKUs, and saw sales rise 12% (while
cutting distribution costs in half) - resulting in an 87%
increase in profit
25
26. Pricing is too often
forgotten
Work together… sell value
and talk about pricing
29. Summary
• Make a commitment to start measuring
▫ No perfect solution is no reason not to start now
• Help build transparency (so you can repeat what works)
▫ Investments , Return
• Cut and kill: ugly puppies, new cute advertising, weak brand
extensions
• Get involved with marketing
▫ Keep them focused on the basics
▫ Get involved in the pricing game
29
30. In the Fast Bridge network we have ex-entrepreneurs (20), academics (12)
and industry experts (30+). Our specializations are:
• Helping companies expand their business internationally
• Leveraging social media to build brands
• New product and brand development
• Innovation coaching and support
About half our clients work on a retainer basis. For others we get paid based
on the results we deliver.
The 3 things that make our company different from most other consulting
companies are: 1/. A stronger focus on business execution 2/. We work with
more senior consultants 3/. We are willing to link our payments directly to a
client’s business results.
MINDS&MORE cvba
MC Square Building, Lambroekstraat 5A, 1831 Diegem
Tel: +32 (0)2 719 02 55, fax: +32 (0)2 719 00 10, info@mindsandmore.biz
Contact
www.mindsandmore.biz
bryan@fast-bridge.com
+32-475-860-757