May11 Written by:Scott Rakestraw
5/11/2006 10:36 PM
A Georgetown faculty member sparked the idea of a marketing performance management spectrum, thanks Ken. I took the concept and personalized it based on my client experience.
In working with and talking with companies, I hear models a great deal. Models and marketing mix models are great and I am a big believer in models. I even have SPSS on my laptop. But, there is one big challenge with models, they require data. Data from multiple sources and large amounts of data.
My goal with my marketing performance management spectrum is to convey how to get to marketing mix modeling. So, go ahead and take the first step to move up the spectrum.
Levels of Enterprise Marketing Performance Management
6. Marketing spend to sales
• Marketing is measured at a 40,000 foot level by using a barometric measurement to evaluate the marketing spend impact on sales at an aggregate level.
• Internal debates exists on the impact marketing has on sales.
5. Manual Campaign Evaluation
• Evaluating campaigns requires manual data collection, consolidation, manipulation
• Because of the manual process, marketing spend decisions are challenging because of the timeliness of reports and campaign evaluations.
• Internal departments challenge the integrity of reports.
4. Automated Campaign Evaluation but Isolated
• One or two marketing channels (Direct marketing or interactive) have a system for campaign management and a means of measuring directly traceable campaigns.
• Creating a single-marketing view is a timely activity and still requires manual activity.
3. Marketing Resource Management
• A single campaign management system exists for all marketing channels to manage the workflow and cost of campaigns.
• Campaign measurement is limited but does exist for direct campaigns.
2. Marketing Performance Measurement
• Holistic view of what marketing campaigns (include advertising), creative, product, promotions, pricing, channels are working and not working.
• Systematically linking of all marketing activities to response
• Numbers are trusted.
1. Marketing Mix Optimization
• Leverage the past to predict the future, using historical data and statistical models to drive the marketing mix to yield the highest ROI.
• Measure the halo effect
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