This document contains the slides from a presentation on marketing and ROI. Some of the key points made in the presentation include:
- Traditional push marketing is becoming less effective due to audience fragmentation and the ability of prospects to research competitors online.
- Branding campaigns can increase both sales and customer loyalty if done well.
- There is no single new model that can replace the old marketing model, but companies need a more strategic approach that builds brand assets and emotional connections.
- ROI is difficult to measure and companies should focus on their goals and use simple models over complex ones when evaluating marketing performance.
2. Hello!
I am Muthoni Maingi
I am here because I love to give presentations.
You can find me at @noniemg on Skype and Twitter
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3. Balancing push
and pull
○ For decades, marketers plied their craft
according to a simple formula: Advertising
creates awareness which in turn produces
sales.
○ However, it has become incomplete. A
variety of trends, including community
marketing, digital technology, social media
and mass personalization—just to name a
few—have conspired against the traditional
view that message and media are sufficient
to create sales.
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4. Push marketing
is not working
for two reasons
○ Cable TV and the
Internet
fragmented
audiences.
Narrowing targets
and raising costs
○ The idea of push marketing has
always been to provoke a response,
such as a phone call or a trip to a
store. But in a digital world,
prospects will engage in
searches. That activity can be
tracked by competitors, who
will retarget those customers with
competing offers.
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5. “
You can catch a fish every
minute if you know which fish
you want to catch
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6. 6
Branding campaigns done well
can not only increase sales, but
consumer enjoyment and
therefore loyalty as
well. Furthermore, discounting,
it seems, can actually hurt sales
in the long run by decreasing
satisfaction and perceived
product performance.
THE PLACEBO EFFECT
7. “
Unfortunately, there is no easy answer. Media budgets continue
to play an important role in successful marketing programs, just as
many of the trendy new tactics often fall short. What is needed is
not a new model, but a more strategic way of thinking.
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If the old model is broken, what should replace it?
8. second
last
first
The best thing
to do is often
the hardest
thing to do.
8Brands, if they are to gain share of synapse, must create
connections that transcend a purchase. That will entail a
paradigm shift from the old model of making contacts to a
new model of building assets in the marketplace.
Eyeballs are fickle organs. They dart here and there,
always searching for something new and different. They
fixate only when engaged and they engage with that
which confers value.
Gut feelings are what great brands evoke. They ingrain
themselves so deeply that they trigger a strong
biochemical response to themselves. We not only buy
them, we crave them. They make us feel good about
ourselves. When confronted with a choice, we find
ourselves making up reasons to choose the one we really
want.
10. 10
There are threetypes of ROI strategies:
CostLeadership: Companies with a cost leadership strategy tend
to be more focused on direct response advertising, so the ROI
picture is somewhat clearer. Direct Response is fairly easy to
measure.
Focus: Companies that focus on a particular market segment
usually have limited marketing budgets. They are either
regionally focused or cater to a particular type of customer. The
marketing ROI equation is somewhat simplified for companies
with a focused strategy. They don’t have that much going on.
Differentiation: Companies with differentiation strategies are
the most marketing intensive. Their success depends on
consumers believing that they offer something better than their
competitors do.
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ROI is probably the most difficult and
contentious issue in the marketing
arena today. There are many ways to
get it wrong and very few ways to get it
right.
12. Common sense
ROI rules to
follow
KISS
Always use the
simplest model that
explains the data
adequately. If you’re
getting reasonably
good insight with a
simple process, there is
no point in trying to be
more sophisticated.
Define your goals
No ROI process can
explain everything. You
can’t optimize your
marketing strategy for
everything. Managing a
business is about
making choices. For one
business it may be
about sales and for
another consumer
perception.
Check your work
Once you believe that
you have identified a
factor that drives your
marketing
performance, try to get
the same result using a
different
method. When
evaluating marketing
ROI, it’s easy to get
false positives.
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13. Common sense
ROI rules to
follow
Avoid bias
If at all possible, people who are
implementing campaigns shouldn’t
be responsible for evaluating
them. Suppliers, for the most part,
shouldn’t even bother with
ROI. Unless there is a very
integrated relationship with the
client the analysis will be ignored at
best. At worst, it can be selectively
used against you.
Eventually your model will fail
Even the best models are based
on past experience and any
bearing on future performance is
tentative. A failed model
shouldn’t necessarily be seen as a
bad thing. It is a signal that the
basis of competition has changed,
and that is very important for a
marketer to know.
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