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Measuring the Value of Financial and Marketing Communication Investments - By Padilla Speer Beardsley 2009

Measuring the Value of Financial and Marketing Communication Investments - By Padilla Speer Beardsley 2009

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Padilla Measurement Presentation Slideshare Padilla Measurement Presentation Slideshare Presentation Transcript

  • Measuring the Value of Financial and Marketing Communication Investments
  • Agenda
    • Introductions and Level Setting
    • Why Measurement is Difficult
    • The Importance of Measurement
    • Common Methodologies
    • 5 Fundamentals of Measurement
    • Case Study Examples
    • Conclusion/Questions
  • The State of Affairs
    • Anything that costs money must be justified
    • Most organizations don’t know how to measure the value, impact, effects and relative return on communication efforts
    • As a result, many resort to counting what they can count
  • Common Questions We Get
    • How do I calculate the ROI of marketing & communications?
    • How do I weigh individual elements in the marketing mix?
    • Can I tie publicity to sales or a stock price?
    • What have you done for me lately?
  • First, Some Definitions…
    • Marketing – is the process of enticing potential customers and clients to buy a product and/or service.
    • Managing the “Four P’s” – Product, Price, Place, Promotion
  • First, Some Definitions…
    • Marketing Communications – are messages and related media used to communicate with a market.
    • Key tools include advertising, public relations, Web sites, social media, brochures/collateral, events, trade shows, etc.
  • First, Some Definitions…
    • Advertising – the strategic purchase of space in order to place messages primarily intended to persuade or sell
    • Paid space, controlled messages
  • First, Some Definitions…
    • Public Relations – a planned effort by an organization to build reputation and influence behavior among groups of people important to its success through acts and communications
    • Can be used as a tool for marketing AND other business functions
  • More Definitions
    • Investor Relations – A responsibility within public companies that provides investors with an accurate view of a company.
    • Essentially, public relations for the investment community that is subject to strict SEC rules and regulations .
  • More Definitions
    • Publicity/Media Relations – use of third-party media organizations to communicate with audiences
    • It’s a tactic in the public relations toolbox
  • The basic hierarchy
    • Marketing
      • Marketing Communications
        • Advertising and Public Relations
          • Publicity
    • Finance
      • Investor Relations
        • Public Relations
  • Together, they help organizations reach the audiences important to their success Your company Customers Shareholders Employees Suppliers & Partners Channel Partners Media Industry Associations Standards Bodies Industry Analysts
  • Why Measure? Because the Results Help:
    • Prioritize work
    • Justify the spend
    • Refine a program
    • Move from anecdotal to a factual
    • Shift from “reactive” to “proactive” mode
  • Value of Measurement
    • Prove that you met objectives
    • Benchmark/track performance
    • Gain competitive advantage
    • “ Move the needle”
      • Sales?
      • Awareness?
      • Response – trial, evaluation, adoption
  • Why is it so difficult?
    • It takes time
    • It takes money
    • We’re dealing with human behavior
    • External factors
    • There are no 1:1 correlations
    • Integrated programs
    • It’s viewed as justification rather than a value-add
    • Distinguishing between “Value” and “ROI”
  • Determining Value
  • EVERYTHING CAN BE MEASURED!!!
  • You need to determine
    • How much should I to put into it?
    • Do I know the vital metrics (for finance, operations, sales, marketing, etc.)?
    • Can you act on the data?
    • What’s my time frame?
  • IT’S A JUNGLE OUT THERE
  • The “HIPPO” Methodology Based on the Hi ghest P aid P erson’s O bjective
  • The “Penguin” Methodology Each tactic measured the same way
  • The “Monkey-See-Monkey-Count” Methodology Counting … just because you can
  • The “T-Rex” Methodology
    • So big that it consumes your entire budget
  • 5 Fundamentals of Measuring Programs
    • Start with research
    • Set measurable objectives
    • Only measure what’s important
    • Use the right tools
    • Measure continuously
  • START WITH RESEARCH
    • Fundamental #1
  • Numerous Research Options
    • Quick surveys and polls
    • Omnibus surveys
    • One-on-one in-depth interviews
    • Focus groups (traditional or online)
    • Advertising analysis
    • Intercepts/on-the-spot surveys
    • Media Monitoring
    • Social Media monitoring
    • Competitive analysis
    • Media content analysis
  • SET MEASURABLE OBJECTIVES
    • Fundamental #2
  • Tips to Developing Measurable Objectives
    • Objectives must:
      • Address a specific outcome
      • Designate the specific target audience
      • Specify a specific level of attainment
      • Identify a specific timeframe
  • Example: Business Objective #1
    • Generate $25 million in revenue from X product line
      • Sales Objective: Improve win-ratio by 40 percent and shorten sales cycle by 20 percent
      • Marketing Communication Objective: Increase qualified sales leads by 20 percent over 2008.
      • Product Marketing Objective: Identify 3 to 5 possible line extensions based on feedback and use of initial launch model
      • Financial Communication Objective: Increase institutional ownership by 10 percent
  • Business Objective #2
    • Improve customer preference of brand
      • Marketing Objective: By 4Q09, achieve 55% brand awareness among 25-40 year old men in the U.S. by increasing awareness by 10%
      • Financial Communication Objective: Increase number of analysts following the company
      • Communication Objective: Maintain #1 share-of-voice position in tier one trade publications compared to competitor A, B & C
  • ONLY MEASURE WHAT’S IMPORTANT
    • Fundamental #3
  • Metrics – the 3 O’s
    • Outputs: Execution of program elements
      • All work measured on budget, timing & message alignment
      • Are we getting the work done efficiently and effectively?
    • Outtakes: The Net Impression
      • Strive for on majority of deliverables
      • Media coverage, circulation, event attendance, distribution, search rankings
      • Are we reaching the right people?
    • Outcomes: The behavior that follows
      • Tied to business goals
      • Sales increase, lead generation, unaided awareness, incoming vs. outgoing media calls
      • Programs, not tactics
  • Audience-Specific Outputs, Outtakes and Outcomes Target Audience Cares About Desired Action Key Message Comm. Strategy Metric Financial Analysts
    • Company performance
    • Strength of management team
    • Market leadership
    • Recommend stock
    • Buy/retain stock as core in long-term growth portfolios
    • Write positive reports
    • Next big market opportunity is “XYZ”, and our company has a leadership position here
    • Company performance exceeds industry leaders
    • Focus conference activity and regional road shows on priorities
    • Upgrade IR web site
    • Increase market cap
    • Change mix of shareholders
    Channel Partner
    • Sales leads
    • Revenue
    • Margin
    • Promote to existing customers
    • Recommend in new proposals
    • Accurately represent us
    • Easiest to install
    • Easiest to use
    • Easiest to do business with
    • Education
    • “ Company in a box”
    • Regional advertising
    • Leads
    • Sales cycle
    • Jobs quoted
    • Jobs won
    • Revenue by partner
  • USE THE RIGHT TOOLS
    • Fundamental #4
  • Sample Measurement Tools
    • Radian6
    • Lexis/Nexis
    • Google News
    • Google Analytics
    • Compete.com
    • Clipping Services
    • Search.twitter.com
    • Boardleader.com
    • BlogPulse
    • Technorati
    • Survey Monkey
    • Gallup
    • Bizshark.com
    • Alexa.com
    • D&B Database
    • Backtype.com
  • MEASURE CONTINUOUSLY
    • Fundamental #5
  • Benchmark, Track, Analyze and Act
  • Minneapolis 612-455-1700 New York 212-752-8338 www.psbpr.com www.psbblog.com