Marketing Strategy from the Masters (Collection)

77. Asset-Based Marketing Measurement

Let’s step back to get a broader picture to understand the context of how sales and marketing budgets are established and therefore measured. Is the budget based on individual department goals and marketing programs/campaigns, or is the budget based on the integrated activities to improve customer and market share? These are key questions.

Marketing budgets are often based on departmental budgets that are divided among project expenses to implement a marketing program or campaign. The results, or ROI, are based on the sales generated during the time the program is implemented (revenue generated less marketing expense). This method is overly simplified and is not a good measure of marketing effectiveness. ...