Marketing Performance

"When it is obvious that the goals cannot be reached, don´t adjust the goals, adjust the action steps." (Confucius, 551 - 479 bc)
Marketing Performance deals with the three fundamental questions C-level managers have to answer concerning the marketing value drivers "customers", "value (demand) chain" and "technology":
In order to achieve incremental marketing improvements, it is often not necessary to transform marketing strategies and operations. Just answering the above questions in a systematic way can help to achieve the desired goal: improving the return on marketing investment.

Marketing Performance Management

The internet, which enables eBusiness, highly efficient and effective marketing and sales, real-time customer communication and performance-driven advertising, offers great opportunities. Therefore, a marketing-driven company gearing all their activities to their customers should take "Marketing Performance Management" at the core of it´s mission, as it is a fundamental success factor for the entire company.

We understand "Marketing Performance Management" as an
integrated management process that starts with sound planning of marketing objectives and the definition of measurable actions and performance indicators. These are the pre-requirements for monitoring, appraisal, and improvement of marketing performance.

A well-established
performance management framework is the Balanced Scorecard. Basically an instrument for implementing corporate strategies, the key strength of the Balanced Scorecard concept is its applicability to all business functions. Hence, applied to planning and managing marketing performance, we use the Balanced Scorecard as a methodology to define and evaluate marketing goals according to four perspectives:

  • Finance (e. g. Return on Marketing Investment, Profit per Customer)
  • Customers (e. g. Market Share, Online Share)
  • Internal Business Processes (e. g. Product Development, Media-Mix)
  • Learning and Growth (e. g. Skill Development)
By introducing "Marketing Performance Management" we make sure that a company gets a balanced view of internal marketing processes and external outcomes. This workshop-driven management process helps to sharpen and align marketing objectives to the corporate strategy, and to derive key performance indicators, metrics, and actions for marketing. Balanced Scorecards are the basis for regular measurement and ensure that all the people in marketing get their job done in a focussed way.

Marketing Effectiveness and Efficiency

A company which is doing effective marketing ("the right things") and efficient marketing ("the things right") is obviously without any need for change. Assuming stability in the competitive environment or in the consumer landscape, you could leave this page here.

But this is actually rarely the case. Competition, markets and consumers are in a constant flux and Chief Marketing Officers and marketing units should constantly monitor their strategies, tactics, media and agency relationships. Even if there is no change needed in the marketing framework, to maintain ground it is wise to
monitor marketing practices every year in order to figure out improvement opportunities.

Marketing Effectiveness is looking at strategic marketing parameters: customers, markets, competition.
Marketing Efficiency deals with operational marketing parameters: marketing costs, media spendings, processes, organization.

Our value-creating consulting service "Marketing Efficiency and Effectiveness" leads to
continuous improvements of performance within a given strategic and operational marketing framework. Individual workstreams of this service offering are:

  • Market Segmentation, Targeting and Positioning
  • Creative Concept
  • Marketing Budgeting and Budget Allocation
  • Media Audit and Selection, Media Planning & Buying (offline, online, mobile)
  • Marketing Resource Management
  • Multi-Channel Campaign Management
  • Marketing Processes and Organization

Enterprise Marketing Management

The internet has brought tremendous insights into user information. Not just e-commerce-driven companies, also brick and mortar businesses identified the online opportunities in terms of measurability and transparency. Companies are increasingly recognizing these possibilities and invest considerable amounts of money in Enterprise Marketing Management software (EMM).

EMM solutions come in of a wide range of tools providing data, information and decision making support at three levels:

  • Tactial level (Individual): Marketing Resource Management, Digital Asset Management, Content Management Systems
  • Operational Level (Middle Management): Web Analytics, Campaign Management Software
  • Strategic level (Executives): Marketing Dashboards, Predictive Modeling
In a fragmented market with a lot of different vendors and software types, making the right decisions for Enterprise Marketing Management solutions are associated with time and cost. Therefore, a detailed preparation of these buying and implementation decisions have a considerable bottom-line impact. Even if firms decide to apply cost-free tools (e. g. in Web Analytics), they invest in people and hire Web Analytics specialists in order to measure web traffic, analyze data and provide these data to management. So, also personnel costs should be included in preparing decisions for Enterprise Marketing Management.

We support companies and NGO´s who consider investments in Enterprise Marketing Management solutions. We analyze the
requirements of the client at all levels, screen and evaluate potential vendors according to a coordinated list of criteria, prepare and attend the request for proposal process (RFP), and finally support the pitch process. Furthermore, we advise companies regarding implementation of purchased solutions and - if required - adapt marketing processes and procedures.

As
independent consultants, we do not have a preconception for an existing solution provider and are therefore fully committed to the targets of the client. And, as we are also delivering communication and advertising agency services, by using best-practice tools ourselves we know the strengths, weaknesses and costs of available products and are therefore an experienced partner for the topics mentioned.
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The 4 P´s

Strategy

We design and implement digital strategies for sustainable growth. more

Web

We develop creative web sites and applications, portals, and online shops. more

Branding

We build brand reputation and communicate brand messages online. more

Sales

We acquire leads and customers and maximize online sales at target ROI. more

Driving profitable revenue growth is the most important goal for any business. This goal can be achieved either by winning more customers, rising the average order value or increasing the orders per customer. Together with Sales and Customer Service, Marketing has a decisive impact on creating profitable revenue growth, generally using the 4 P´s: Product, Price, Place, Promotion.

The challenge marketing is facing in many firms is to
demonstrate measurable impact on profitable revenue growth. Laurels for revenue are often gained by the Sales team, laurels for profit are gained by Controlling, which keeps cost low. And what about marketing, which for a long time has been the supreme discipline in a company?

On their way to
customer and market focus, many firms are "stuck in the middle" and lag considerably behind market leaders. The reasons we are observing are fourfold and sometimes it is a combination of the subsequent situations:
  • Many marketing departments leave price decisions to finance and place decisions to sales.
  • As a consequence, the marketing role is frequently narrowed to PR, Communications and Promotions.
  • Thus, marketing hires people which are more brand-driven than analytical.
  • Marketing is hesitant to embrace the opportunities of new media.

These are dangerous scenarios. As brand loyalty among customers is on the decrease, marketing has to fundamentaly change its position, role and responsibilites. Big companies with marketing departments should assess the effectiveness and efficiency of their marketing strategies and operations. In small and medium sized companies, it is either the CEO or Sales who should take care of the marketing focus and performance.

"Marketing Performance" is a service supporting this evaluation and optimization process. It goes beyond the scope of mere "Performance Marketing", which is used for the operational implementation of integrated online advertising campaigns with cpx-driven business models.