ROI- Based Marketing Program Evaluation and Budget Allocation Process
 

ROI- Based Marketing Program Evaluation and Budget Allocation Process

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A three-page excerpt from a guidebook profiling Kimberly Clark and its best practices ROI-Based Marketing Program Evaluation and Budget Allocation Process.

A three-page excerpt from a guidebook profiling Kimberly Clark and its best practices ROI-Based Marketing Program Evaluation and Budget Allocation Process.

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    ROI- Based Marketing Program Evaluation and Budget Allocation Process ROI- Based Marketing Program Evaluation and Budget Allocation Process Presentation Transcript

    • growth team m e m b e r s h i p™A three-page excerpt from our 17-page Best Practice Guidebook:ROI-Based Marketing ProgramEvaluation and Budget Allocation ProcessThe contents of these pages are copyright © 2010 Frost & Sullivan. All rights reserved.
    • growth team m e m b e r s h i p™ 1Best Practice GuidebookROI-Based Marketing Program Evaluation and BudgetAllocation Process guidebook summary Firm: Kimberly-Clark Professional Industry: Provider of hygiene, surface cleaning, worker productivity, and safety solutions Headquarters: Roswell, Georgia, USA Geographic Footprint: Global with four Regions: North America, Europe, Middle East and Africa, Latin America, and Asia Pacific Ownership: Public Revenue (2008): $3 billion USD (Division of a $19.1 billion company) Problem: Business Results: Under pressure to prove the efficiency and ROI on its spending, A 17% improvement in marketing efficiency (measured through net sales Marketing needs a process to allocate funding to programs based on as a percentage of direct marketing expenses). their viability and to monitor their effectiveness. The process must: Resources Required: • Identify the most viable marketing programs • A cross-functional core team including representatives from • Increase the efficiency of marketing expenditures Marketing, Finance, Sales, Sales & Marketing Operations, IT, and • Embed consistent ROI measurements across geographies and Marketing Communications business units • A group of marketers to test the new process and tools Solution: • The use of a vendor to develop the ROI Toolbox Kimberly-Clark Professional develops an ongoing process to identify and • A year-long commitment to build the initial process and train staff monitor the most viable marketing programs by: Applicability of Best Practice to Executive Functions: • Centralizing marketing funding under a cross-business unit team Function Applicability • Developing an ROI Toolbox to guide program creation and monitoring Marketing • Instituting an ROI-based process to evaluate, select and monitor programs Sales Management • Benchmarking program performance to refine metrics and identify Corporate Strategy best in class programsThe contents of these pages are copyright © 2010 Frost & Sullivan. All rights reserved.
    • growth team m e m b e r s h i p™ best practice guidebook 2 key takeaway: Kimberly-Clark Professional creates a process to evaluate, fund, and monitor marketing programs based on their projected ROI and strategic fit ROI-Based Marketing Program Evaluation and Budget Allocation Process Overview scope of application 1. Program Proposal Creation Alignment Objective: The marketing managers create a viable Kimberly-Clark Professional applies this proposal that has a strong ROI (which is the adjusted 2. Program process to align marketing strategy between: gross margin divided by the marketing program cost) Proposal Review • Regions: and supports the overall Marketing strategy. - Phase One: North America (process and A Marketing Leadership Committee (MLC) assesses Toolbox rolled out) proposals to allocate - Phase Two: Europe, Middle East and Africa funds to those that (process rolled out, developing the Toolbox) seem most viable. - Phase Three: Latin America and Asia Pacific 5. Program (future expansion over next three years) Benchmarking ROI Toolbox • Business Units Marketing and sales The ROI Toolbox provides key • Brands leaders assess the infrastructure for the process. It contains: • Distribution channels year’s marketing • A searchable database of current and • End-user segments programs to refine archived programs; • Sales predictive models, • A simulator to create and evaluate identify general Funding different program proposals; program guidelines, Kimberly-Clark centralizes marketing funding and highlight best-in- • A repository for all program 3. Mid-Program for each region to support the global alignment class programs. assessments performed by the MLC Review of marketing strategy and priorities. and Business Unit (BU) Leaders; • A set of best practice benchmarks, The MLC reviews Program Proposal Threshold templates, and tools progress to This process is used to allocate funds and identify any needed monitor approximately 100 marketing adjustments to the programs annually. Programs are assessed and programs. reviewed by their respective BU Leader unless 4. Post-completion they are labelled key initiative programs. Key Assessment initiative programs are projects whose funding The MLC analyzes the marketing requests are either in the top 20% of proposals program’s results to compare or that require sales resources. Approximately actual versus planned 20 of each year’s marketing programs are performance. considered key initiatives.The contents of these pages are copyright © 2009 Frost & Sullivan. All rights reserved. Source: Kimberly-Clark Professional; Growth Team Membership™ research.
    • growth team m e m b e r s h i p™ best practice guidebook 3 key takeaway: Create marketing program proposals in the context of strategy, current programs, and previous programs To begin the proposal creation process, marketing managers use the ROI Toolbox to evaluate their initial program concepts against current marketing strategy and existing and archived programs ROI Toolbox: Marketing Program Database (Illustrative) CURRENT AND marketing program MARKETING STRATEGY ARCHIvED PROGRAMS SEARCH RESULTS proposal prep-work Strategic Goals Program Status: To develop high-ROI based This delineates the current company  Current proposals with a strong strategic objectives and related strategy for  Archived fit, the ROI Toolbox enables each business unit and brand. 1. Program ID: 2864 Example:  Best-in-class marketers to: Description: Distributor program targeting • Penetrate existing Washroom mid-size manufacturing accounts. 1. Review current marketing Accounts with a broader bundle. Planned ROI: 142% strategy to align program with company goals • Penetrate existing Manufacturing Search by: Keyword Actual ROI: 95% End-user Segment with Safety Goal Program Cost: $50,000 2. Evaluate current programs to solutions. and avoid overlap Brand Payback Period: 6 months • Acquire new Manufacturing End-user Segment 3. Assess benchmarked studies and Accounts with Safety or and archived programs to identify Industrial Wiper Solutions. Distribution Channel baselines and patterns in Tactic successful programs 2. Program ID: 7989 4. Identify and export relevant General Program Guidelines archived programs as templates Description: Integrated campaign to drive The guidelines encompass the acquisition of new manufacturing end-user to be used in proposal creation key lessons learned regarding tactics used in previous marketing Limit Search by: accounts. programs. Year: 2006 Year: to Example: Planned ROI: 5% ROI: to Actual ROI: 20% • Avoid dependence on Sales Literature as a tactic given its Payback Period Program Cost: $40,000 low ROI. (Months): Payback Period: 12 months • Utilize distributor promotions EXPORT for success in lead generation. to FOLDER Search Results (1 to 2) of 5 itemsThe contents of these pages are copyright © 2009 Frost & Sullivan. All rights reserved. Source: Kimberly-Clark Professional; Growth Team Membership™ research.
    • growth team m e m b e r s h i p™ Please contact us to learn how to access the full Best Practice Guidebook or for information on Growth Team Membership.™ Email us GTMresearch@frost.com Visit us online www.gtm.frost.comThe contents of these pages are copyright © 2010 Frost & Sullivan. All rights reserved.