Calculating Marketing’s Value

Last Updated: January 27, 2014By Chintan Bharwada

Considering fast changing trends in the marketing will surely come off as the most dynamic profession in the business world. You will all agree with me that the traditional marketing approaches like print media have become more or less influential on consumer tastes regarding buying decisions. In the recent past, marketing executives have to be analytical on evaluation of their approach on the advertising and marketing strategies or else, it will be more declining position in marketing expense that don’t bring worthiness as return on investment. This has seen the evolution of industry forcing the marketers to improve their game in order to keep up with the changing business trends and modalities or else they will be rendered absolute with time. The cost of doing business and the environment has grown complex and the technological savvy advancements have also come into play. Media marketing platforms have overly influenced the market trends and seem to be having a solution to many mind of cracking questions. Here are some five and the timely approaches

1. What exactly influences our consumers today?

It will be a futile process without going to the bottom line of the marketing media, technology and the social media punch lines and their influence on the consumer decisions and buying behaviors. The technical savvy generation and the social media are lately playing the biggest share of the consumer decision making. With the use of internet platforms, consumers are able to access all product information including the product reviews and that is why, the marketer does right or misses the biggest market share. As a marketing executive, do the business that people demand, it will be cost effective if you only spend where the percentile returns are promising in your marketing.

2. How well informed is our marketing judgment?

Guessing the marketing outcome projection is as good as a hurt to business. In the old days, for instance, television marketing and advertisement has worked but lately, it is making little or no impact at all in the area of consumer decision to purchase. Then in the current state, we have to have the judgment entwined in facts to be able to achieve the sales form marketing. This will be possible if only our judgment will be inclusive of data and it is backed by analyses to qualify the data.

3. How are we managing financial risk in our marketing plans?

You will agree that marketing is purely communication. Its success is pegged on the right message going to the right people at the right time. Then this has been well calculated action plan that calls for the choice of the advertisement path that has lower risks in comparison to the return on investment. The bigger the risk, the higher the chances of returns, but in marketing, this principle fails in some situations. Risk management tools have to play and notes ought to be straight on the table for risk management.

4. How are we coping with added complexity in the marketing organization?

Overtime, marketers have evolved and lately, they are not only using the official platforms but also the personal social media platforms to do it. The business environment has become complex then calling for such moves by the professionals involved. In the recent past, companies have moved ahead to get the professional brand managers (people whom are able to link up the communication within the company and outside in the market) and finally, have put in place clear distinctions on roles.

5. What metrics should we track given our options?

Last but not least, comparing return from various options has and will see success in the marketing industry. Every new marketing media will come with its trends and we can only know about it, once we try it.

Chintan Bharwada

Chintan is the Founder and Editor of Loyalty & Customers.

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To achieve better sales and profits, most companies could be doing more to cultivate business from their existing customers. However, enthusiasm for customer-retaining strategies must not endanger sound customer-getting efforts. How companies balance the two is the big question. To intensify reaching old customers while still seeking new ones, for many firms, will mean changes in market analysis, planning systems, management incentives, and marketing and/or operations organization. In the rush toward growth, consumer marketers have tended to regard success as stemming from obtaining new customers while unwittingly minimizing the importance of satisfying old ones. It is time for more companies to distinguish between their getting and retaining functions, to assess the balance between them, and to remedy any deficiencies in customer retention. This process requires management to value the potential of current customers and to treat them in special ways to get them to keep coming back. Several major elements should be part of the new marketing mix for customer retention: Product extras Keeping customers frequently requires giving them more than the basic product that initially attracted them. Product extras for individual customers over time can play a sales-expansive role. Reinforcing promotions Product promotion works better when aimed at existing customers. If a marketer knows who these customers are, benefits can be obtained by giving them reinforcing communications. Sales force connections The sales force can play a decisive role in the customer-retention function. At a retail or service counter the salesperson is the focal point of the company's strategy and is the firm to the customer. Post-purchase communication A company must anticipate that some customers will encounter either minor or serious problems after purchasing. If the firm is not ready to hear and correct these difficulties, the customer may not repurchase or may cancel the the relationship. Whether company or customer is at fault, standby post-purchase activities can be instrumental in saving these customers.

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