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Grip op de marketing performance

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Presentatie voor controllers over marketing accountability. Over het meer transparant maken van uitgaven/investeringen in marketing en de resultaten die hieruit voortkomen.

Presentatie voor controllers over marketing accountability. Over het meer transparant maken van uitgaven/investeringen in marketing en de resultaten die hieruit voortkomen.


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  • 1. Grip op de marketing performance Ed Peelen
  • 2. 2
  • 3. Agenda > Marketing accountability: where do we stand and what are the consequences? – Frequently used metrics > Marketing map: towards an organization specific model – Strategic and operational aspects – Assets – Relating activities, resources to results – Risk > Interface marketing – control 3
  • 4. Current status? Effectiveness of controls by function 4 0 10 20 30 40 50 60 70 80 90 100 finance customer service manufacturing supply chain sales R&D marketing marketing finance Source: Shaw and Frisk
  • 5. Current status? Budgets most likely to be cut by finance 5 0 5 10 15 20 25 marketing HR Training R&D IT Series1 Source: KPMG
  • 6. Current status? >Marketing driver of business success? >Crises of confidence at the top? >Marketing budgets are cure more than any other >Marketing spending is volatile, swinging up an down year-to-year >Marketing controls need overhaul >Marketing resistance to controls 6 Source: Shaw and Merrick
  • 7. Current status? >Accountability – 20% of the expenditures are responsible for 80% of the results? >Decision making – Fact based or a ‘damn good story’ to influence decision making? 7
  • 8. Current status? Marketing metrics > Share of Hearts, Minds, and Markets > Margins, Profits and Return on Investments > Product and Portfolio Management > Customer Profitability > Brand Value > Sales Force and Channel Management > Pricing Strategy > Promotion > Advertising Media and Web Metrics 8 An overview and a detailed discussion of every marketing metric you'd ever want to know. What are the key metrics you use to monitor marketing performance?
  • 9. Current status? The magic numbers? Non financial… 9 0 10 20 30 40 50 60 70 80 90 awareness market share relative price # complaints satisfaction availability # customers perceived quality loyalty relative perc. Qual. % use % reach board % top rating Source: Ambler
  • 10. Marketing map 10 Define market and understand value Determine value proposition Get market Deliver value proposition Monitor value Asset base Strategic zone Operational and Measurement zone
  • 11. Marketing map 11 Define market and understand value Determine value proposition Get market Deliver value proposition Monitor value Asset base Strategic zone Operational and Measurement zone Operational efficiency is usually a necessary but insufficient condition for creating shareholder value and so strategic effectiveness becomes important
  • 12. Marketing map 12 Define market and understand value Determine value proposition Get market Deliver value proposition Monitor value Asset base Strategic zone Operational and Measurement zone Developing marketing expenditure is aimed at increasing the value of marketing assets such as brands, customers relations and channels of distribution Maintenance marketing Building a market
  • 13. 13
  • 14. 14
  • 15. Marketing map 15 Define market and understand value Determine value proposition Get market Deliver value proposition Monitor value Asset base Strategic zone Operational and Measurement zone An objective assessment of whether or not the strategy will create or destroy shareholder value, how to improve The likelihood of tactics and operations to create the necessary competitive advantage in each segment and to achieve objectives
  • 16. Marketing map Relating activities and resources to results Strategy Tactics and operations R W Right (R) Wrong (W) Doing the right things right
  • 17. Calculating Customer Value An example of a Customer Life Cycle Profit Pattern in the Credit Card Industry -80 40 66 72 79 87 92 96 99 103 106111116 120124130 137142148 155161 -100 -50 0 50 100 150 200 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Years Profitin$ Source: Reichheld
  • 18. Impact of a 5% retention increase on Customer Net Present Value Software Publishing Officebuilding management Lifeinsurance Industrialdistribution Creditcard Advertisingagency Industrialbrokerage Branchbankdeposits Auto/Homeinsurance Autoservice Industriallaundry 0 10 20 30 40 50 60 70 80 90 100 Industry Loyalty pays off? Source: Reichheld
  • 19. Customer value map Fair value zone Worse value Better value Relative price H L L 1.0 HRelative quality 1.0 X X X X X X X
  • 20. © ICSB, 0 20 40 60 0 10 0 250 ILLUSTRATION Moving 4 week data Awareness Index GRPs 7 2 Claimed recall Model estimate. Base level 77 10 Campaign A Campaign B 2½ years AWARENESS INDEX The % increase in awareness at 100 GRP’s Campaign B generates 3x as Much advertising recall as campaign A BASE LEVEL Result of past activities
  • 21. Efficient Promotion 0 50000 100000 150000 200000 250000 300000 w1 w2 w3 w4 w5 w6 w7 w8 w9 w10 w11 w12 w13 w14 w15 exfact exdc scan Source: Nielsen
  • 22. Managing the sales process New customer acquisition 1/15 1/5 1/3 Order 115 3+/- 250 1- st visit Various tools Finance Database 225.000 - KvK - Comp Profile - Eigen bestand Telemarketing Lead info enrichment Salesman selects -Postcode -10-15 empl. Call for Appoint ment Training Quotation Call Negioti ating Standard Quote Training skills Sales Lead Time 10 weeks
  • 23. Marketing map
  • 24. Marketing model >Relating resources, efforts to results – Distinguishing factors affecting the demand, the final result – Time lag – Indirect effects: economy, competitors, consumer trends – Optimum 25
  • 25. Risk assessment (quantification) > Market risk – Product category, market existence, sales volume, forecast, pricing > Share risk – Target market, proposition, swot, uniqueness, future > Profit risk – Profit pool, profit source, competitor impact, internal gross margin, other 26 Sensitivity to risks differs; depends on growths, market share, margins, competition Normally, generating growth in sales revenues and profits leads to an increased risk profile in mature markets and for mature products
  • 26. Risk assessment >How to handle risk: – Adjusting the discount rate for risk? >Type of risk: – Potential damage to investment results – Potential damage to existing assets! 27
  • 27. Organizing for the interface between controling and marketing >Policeman >Supporter, coach, advisor >Complementing each other >Informing, coordinating, decision making, monitoring 28