Chapter 13
MEASURING 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.
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 has been addressing this problem through its Marketing Value Added Research Club and Marketing Accountability Research Club, formed with a number of 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 it, to answer the widespread accusations of poor performance, ...
