Marcom planning analysis & reporting

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Guidelines for marketing communications planning to enable corporatewide ROI analysis & reporting.

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Marcom planning analysis & reporting

  1. 1. Marcom Analysis & Reporting October 3, 2002
  2. 2. Marcom Analysis & ReportingTopicsObjectivesAccomplishments to dateOverview of Marcom ROI modelDependencies
  3. 3. Marcom Analysis & ReportingObjectives
  4. 4. Marcom Analysis & ReportingObjectivesTrack performance of campaigns &communication channels
  5. 5. Marcom Analysis & ReportingObjectivesTrack performance of campaigns &communication channelsInform budget planning & allocation
  6. 6. Marcom Analysis & ReportingObjectivesTrack performance of campaigns &communication channelsInform budget planning & allocationEnable channel management & strategiccustomer contacts
  7. 7. Marcom Analysis & ReportingObjectivesTrack performance of campaigns &communication channelsInform budget planning & allocationEnable channel management & strategiccustomer contactsEstablish effective reporting process
  8. 8. Marcom Analysis & ReportingObjectivesTrack performance of campaigns &communication channelsInform budget planning & allocationEnable channel management & strategiccustomer contactsEstablish effective reporting processDeliver customer-oriented research
  9. 9. Marcom Analysis & ReportingObjectivesTrack performance of campaigns &communication channelsInform budget planning & allocationEnable channel management & strategiccustomer contactsEstablish effective reporting processDeliver customer-oriented researchDetermine M arcom ROI
  10. 10. Marcom Analysis & ReportingAccomplishments to dateRoll up/reporting of 2002 activitiesReports for analysis of media creative costsIdentified marcom baselinesEstablished benchmarks for marcom mix allocationEnabled revenue reporting
  11. 11. Marcom Analysis & ReportingOverview of Marcom ROI
  12. 12. Marcom Analysis & Reporting Overview of Marcom ROI Marketers surveyed by M C* waste L on average 26% of marketing budget Average Waste = 26% of Budget 36% 20% 19% 17%% of M C LRespondents 4% 3% 1% 1-10% 11-20% 21-30% 31-40% 41-50% 51-60% 61-70% * Marketing Leadership Council Benchmarking Research: Measuring Marketing P erformance, August, 2001
  13. 13. Marcom Analysis & Reporting Overview of Marcom ROI M C survey* shows limited ability to L calculate marketing ROI Fewer than a third of marketers can show returns for more than half of their marcom spend. 30% 35% 24%% of M C L 5% 6%Respondents 0% 1-25% 26-50% 51-75% 76-100% * Marketing Leadership Council Benchmarking Research: Measuring Marketing P erformance, August, 2001
  14. 14. Marcom Analysis & ReportingOverview of Marcom ROIM C obstacles to improved ROI: L * Marketing Leadership Council Benchmarking Research: Measuring Marketing P erformance, August, 2001
  15. 15. Marcom Analysis & ReportingOverview of Marcom ROIM C obstacles to improved ROI: L Lack of data (58%) * Marketing Leadership Council Benchmarking Research: Measuring Marketing P erformance, August, 2001
  16. 16. Marcom Analysis & ReportingOverview of Marcom ROIM C obstacles to improved ROI: L Lack of data (58%) Lack of consistency in measurement (52%) * Marketing Leadership Council Benchmarking Research: Measuring Marketing P erformance, August, 2001
  17. 17. Marcom Analysis & ReportingOverview of Marcom ROIM C obstacles to improved ROI: L Lack of data (58%) Lack of consistency in measurement (52%) Lack of expertise (50%) * Marketing Leadership Council Benchmarking Research: Measuring Marketing P erformance, August, 2001
  18. 18. Marcom Analysis & Reporting Requirements for measuring ROI*? 1. M know current value of the customer ust * Measuring Bra Com unication ROI by Schultz & Walters nd m
  19. 19. Marcom Analysis & Reporting Requirements for measuring ROI*? 1. M know current value of the customer ustX M be able to identify messages sent to ust customer * Measuring Bra Com unication ROI by Schultz & Walters nd m
  20. 20. Marcom Analysis & Reporting Requirements for measuring ROI*? 1. M know current value of the customer ustX M be able to identify messages sent to ust customerX M be able to measure the difference in ust response (income flow) from customer/ prospect * Measuring Bra Com unication ROI by Schultz & Walters nd m
  21. 21. Marcom Analysis & ReportingModel for measuring ROIFocus on business-building communicationsvs. brand-building communications: Business Building Brand BuildingShort-term returns Long-term returnsTransactions Brand valueImmediate expense Amortized investmentOn the margin ReplenishmentVariable cost Fixed cost
  22. 22. Marcom Analysis & Reporting1. Assess Demand/Opportunity Requirement Assumptions Totals SMLF LLF Corp Gov AcademicHistorical demand $0 $0 $0 $0 $0 $0Estimated % increase/decrease in demand 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%Adjusted demand $0 $0 $0 $0 $0 $0 Total legal market and requirement expressed in dollars and percentages
  23. 23. Marcom Analysis & Reporting2. Assess Income Flow vs. Costs Income Flow Assumptions Totals SMLF LLF Corp Gov AcademicBase share of requirement 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%Base income flow to West $0 $0 $0 $0 $0 $0 W share of market and requirement est expressed in dollars and percentages
  24. 24. Marcom Analysis & Reporting2. Assess Income Flow vs. Costs Income Flow Assumptions Totals SMLF LLF Corp Gov AcademicNon-Communication costs ($) $XX $XX $XX $XX $XX $XXNon-Communication costs (%) X% X% X% X% X% X%Communication costs $XX $XX $XX $XX $XX $XX Advertising $x $x $x $x $x $x Direct Mail $x $x $x $x $x $x Internet $x $x $x $x $x $x Trade Show $x $x $x $x $x $x Promotion $x $x $x $x $x $x Sponsorship $x $x $x $x $x $x Publicity/PR $x $x $x $x $x $x Distinguish communication expenses from non-communication expenses
  25. 25. Marcom Analysis & Reporting2. Assess Income Flow vs. Costs Income Flow Assumptions Totals SMLF LLF Corp Gov AcademicContribution Margin ($) $XX $XX $XX $XX $XX $XXContribution Margin (%) X% X% X% X% X% X% Income flow from each segment (less communication and non-communication costs) expressed in dollars and percentages
  26. 26. Marcom Analysis & Reporting3. Determine baseline with no marcom spend No Communication Investment Totals SMLF LLF Corp Gov AcademicChange in Share Requirement (+/-) X% X% X% X% X% X%Resulting Share of Requirement X% X% X% X% X% X%Resulting Customer Income Flow to West $x $x $x $x $x $xLess: Non-Communication Costs $x $x $x $x $x $xLess: Communication Cost $x $x $x $x $x $xNet Contribution $X $X $X $X $X $X Assumptions:
  27. 27. Marcom Analysis & Reporting3. Determine baseline with no marcom spend No Communication Investment Totals SMLF LLF Corp Gov AcademicChange in Share Requirement (+/-) X% X% X% X% X% X%Resulting Share of Requirement X% X% X% X% X% X%Resulting Customer Income Flow to West $x $x $x $x $x $xLess: Non-Communication Costs $x $x $x $x $x $xLess: Communication Cost $x $x $x $x $x $xNet Contribution $X $X $X $X $X $X Assumptions: 1. Customer requirement remains the same
  28. 28. Marcom Analysis & Reporting3. Determine baseline with no marcom spend No Communication Investment Totals SMLF LLF Corp Gov AcademicChange in Share Requirement (+/-) X% X% X% X% X% X%Resulting Share of Requirement X% X% X% X% X% X%Resulting Customer Income Flow to West $x $x $x $x $x $xLess: Non-Communication Costs $x $x $x $x $x $xLess: Communication Cost $x $x $x $x $x $xNet Contribution $X $X $X $X $X $X Assumptions: 1. Customer requirement remains the same 2. W share of requirement will decrease est
  29. 29. Marcom Analysis & Reporting3. Determine baseline with no marcom spend No Communication Investment Totals SMLF LLF Corp Gov AcademicChange in Share Requirement (+/-) X% X% X% X% X% X%Resulting Share of Requirement X% X% X% X% X% X%Resulting Customer Income Flow to West $x $x $x $x $x $xLess: Non-Communication Costs $x $x $x $x $x $xLess: Communication Cost $x $x $x $x $x $xNet Contribution $X $X $X $X $X $X Assumptions: 1. Customer requirement remains the same 2. W share of requirement will decrease est 3. Change of requirement estimates based on historical data and management judgment
  30. 30. Marcom Analysis & Reporting4. Estimate impacts of communication investment Communication Investment Totals SMLF LLF Corp Gov AcademicCommunication Efforts (initiatives) X X X X X XContact Points X X X X X XTotal Communication Investment $x $x $x $x $x $xChange in Share of Requirement (+/-) X% X% X% X% X% X%Resulting Share of Requirement (%) X% X% X% X% X% X%Resulting Customer Income Flow to West $X $X $X $X $X $XLess: Non-Communication Costs $x $x $x $x $x $xLess: Communication Costs $x $x $x $x $x $xNet Contribution $X $X $X $X $X $X Measure total investment against customer groups
  31. 31. Marcom Analysis & Reporting5. Determine marcom ROI ROI Calculation Totals SMLF LLF Corp Gov AcademicIncremental gain/loss vs. no investment $x $x $x $x $x $xIncremental ROI x% x% x% x% x% x% Compare total investment to resulting change in income flow
  32. 32. Marcom Analysis & ReportingDependencies & ImpedimentsData:Don’t know market size/ share
  33. 33. Marcom Analysis & ReportingDependencies & ImpedimentsData:Don’t know market size/shareDon’t know customer value (L V) T
  34. 34. Marcom Analysis & ReportingDependencies & ImpedimentsData:Don’t know market size/ shareDon’t know customer value (L V) TB M is lower priority client for DB M S M
  35. 35. Marcom Analysis & ReportingDependencies & ImpedimentsData:Don’t know market size/ shareDon’t know customer value (L V) TB M is lower priority client for DB M S MCommitment:T & M op iddle Management support
  36. 36. Marcom Analysis & ReportingDependencies & ImpedimentsData:Don’t know market size/ shareDon’t know customer value (L V) TB M is lower priority client for DB M S MCommitment:T & M op iddle Management supportConsistent budget management
  37. 37. Marcom Analysis & ReportingDependencies & ImpedimentsData:Don’t know market size/ shareDon’t know customer value (L V) TB M is lower priority client for DB M S MCommitment:T & M op iddle Management supportConsistent budget managementResources:Manage/ maintain marcom roll-up & reporting
  38. 38. Marcom Analysis & ReportingDependencies & ImpedimentsData:Don’t know market size/ shareDon’t know customer value (L V) TB M is lower priority client for DB M S MCommitment:T & M op iddle Management supportConsistent budget managementResources:M anage/ maintain marcom roll-up & reportingExpertise to build marcom ROI model

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