There comes a moment at every company when the CFO asks the CEO, the COO, and the CIO about the CMO. “What is the measure of success? How do you set a budget for something that's so…so…fuzzy as ‘marketing’ and ‘branding’?”
The COO's head shakes and his shoulders rise. The CIO looks blank. The CEO tries to explain some of the above. The CMO looks at the others and expresses gratitude that somebody outside the marketing department has finally showed some interest. After taking a deep breath, the CMO describes the metrics that have been used in marketing for years, starting with public relations and market research. After all, we need to know whom we're targeting.
MARKET RESEARCH: WHOM ARE WE AFTER?
Market research began as a means of identifying just how big the marketplace is for your new invention or special service. Are there enough people who could afford it within the region it's going to be for sale? Are there competitors? Do people perceive the need for it already or do we need to spend some time educating them? What alternatives do people have?
Demographics were needed by radio and television stations to describe their audiences to potential advertisers. Age, gender, education level, and the like within a specific territory were the first data tools. The national census was started and then companies sprang up to conduct more detailed surveys. Pretty soon, custom surveys asked about specific brand awareness, attributes, and ...