Lately, accountability and transparency have become part of the vocabulary of every newscaster and Wall Street analyst. That should not undermine or reduce their significance and efficacy in business. Entering into the business recovery that is coming, all managers will be expected to instill and utilize smart business fundamentals. Critical elements will include emphasis on budget soundness, metrics, and results tracking.
Marketing Communications practitioners will have to ensure that they have ‘game’ when it comes to evaluation and monitoring. Too often, folks have emphasized the intuitive art of marketing communications at the sake of the marketing science. There must be a place for both, working together can only enhance and improved marketing program effectiveness.
There are no acceptable excuses or rationale EVER, for any marketing program to be launched without a clearly defined, practical and well rounded evaluation and measurement plan.
Below are good examples you should NOT follow. Marketing Leverage LLC has experienced and witnessed well meaning and skilled marketers who committed these very mistakes. They went astray for assorted reasons – lack of time; budget restrictions; misguided assumptions on new products/categories – etc.
1. Don’t Identify Clear Objectives
• All campaigns should have well defined goals and measurable objectives
2. Evaluation Criteria and Approach is Developed After Execution
• Building it in early allows for testing / control measures and helps establish a broader body of data for further analysis
3. Forget about Benchmarks
• Campaign objectives, norms, industry trends and historical data all help the ability analyze and evaluate campaign results.
4. Ignore Historical Data
• Campaigns have to show changes in customer relationship with the brand and how they affected behavior.
• This requires data over time to put results into context. A minimum of 3 years is needed for proper perspective.
5. Ignore Behavioral Outputs
• Many important marketing objectives focus on perceptual changes, awareness, interest and attitudinal shifts
• Ultimately, action is required to translate into business results, so trial, referral, increased usage are even more necessary
6. Results that aren’t projectable
• To be useful, statistical significance is mandatory
• Sample sizes & tests must be vetted by a research pro
7. Results are Not Linked to the Program
• Showing effects is not enough; you must prove the campaign was responsible
• Identify repeated correlations – e.g. - Awareness increases following advertising flights; Volume increases associated with retail promotions
8. Failing to Consider Outside Factors
• Positive results are always believed to be the result of marketing activity
• Good or bad, complete analysis requires consideration of factors unrelated to your program.
i. Other marketing programs by your company – DR, sponsorships, PR, etc.
ii. Channel – increased distribution; retailer promos
iii. Competitor or substitute activity
9. Taking Direct Response Data at Face Value
• DR rates are impacted by any and all other marketing forces at play; you must include some assessment of the factors observed by your analysis
• DR results only measure one perspective of a campaign. Marketing and digital programs can boost awareness and drive retail sales.
• DR doesn’t measure the total contribution. For example, poorly executed programs can drive many unqualified inquiries, increased call handling times or create excess demand; all with additional cost implications
10. Focusing on the short term
• Ideally, a marketing program should be measured on the long term value of contribution to the brand and company
i. Heavy discounting or promotion can undermine a premium position
ii. User of mass or selected retail channels may weaken a luxury brand
11. Silo Analysis
• Looking solely at one channel naïve and self-serving. Effective marketing managers will seek to understand the interaction among channels and how they influence consumers
• Program timing, investment planning and fulfillment all require a holistic view
12. Seeking Volume over Value
• Closely linked to short term thinking, many marketers go for big numbers (responses, share, units); failing to consider the full impacts
• Volume of any sort will have cost implications for a business that must be understood
i. Response handling
ii. Fulfillment
iii. Manufacturing
iv. Customer service
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