Marketing Plans, 9th Edition

CHAPTER 13MEASURING THE EFFECTIVENESS OF MARKETING PLANNING

SUMMARY

• An appraisal of marketing investment techniques
• Shareholder value added
• Marketing due diligence and assessing the riskiness of strategic marketing plans
• Linking marketing expenditure to corporate financial objectives
• Measuring promotional expenditure effectiveness
• Measures for digital media channels
• Exercises to turn the theory into practice

A THREE-LEVEL MARKETING ACCOUNTABILITY FRAMEWORK

The ultimate test of marketing investment, and indeed any investment, is whether it creates value for shareholders. But few marketing investments are evaluated from this perspective, and many would argue that it is almost impossible to link financial results to any specific marketing activity.

But increasingly, boards of directors and city analysts the world over are dissatisfied with this lack of accountability for what are, very often, huge budgets. Cranfield School of Management decided to tackle this problem systematically with a thorough, multi-year research project through its Marketing Value Added Research Club, later renamed the Marketing Accountability Research Club, a syndicate of several blue-chip companies. The club set out to create and test a new framework which shows how marketing systematically contributes to shareholder value, and how its contribution can be measured in an objective and comparable way.

MARKETING INSIGHT

There is an urgent need for such a framework. Not only does marketing need ...