Module 4 strategy & planning final


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Module 4 strategy & planning final

  1. 1. Real-Time Analytics & Attribution
  2. 2. • Noah Powers – Principal Solutions Architect, Customer Intelligence, SAS• Patty Hager – Analytics Manager, Content/Communication/Entertainment, SAS• Suneel Grover – Solutions Architect, Integrated Marketing Analytics & Visualization, SAS – Adjunct Professor, Business Analytics & Data Visualization, New York University (NYU)
  3. 3. Data Driven Strategy
  4. 4. Module 4Strategy & Planning
  5. 5. Strategy & Planning Marketing Decisions Marketing Mix Optimization Marketing Operations Management Case Studies Information ManagementERP CRM EDW Online Social Other Data Sources
  6. 6. What Is Marketing Mix Modeling & Optimization? An analytic process that quantifies the relationship between drivers and influencers of sales across channels • Understand the past performance of sales & marketing activities • Analyze and assess average ROI and marginal ROI • Evaluate marketing investment among increasing media options • Compare and assess different future marketing spending plans 6
  7. 7. Questions Marketing Mix Can Address• How can I still achieve my marketing goals while facing budget cuts?• I am below target, how do I re-allocate my marketing budget to hit targets?• How do I decide where to invest my marketing budget to support a product portfolio?• How and where do I invest in social media to maximize business impacts? 7
  8. 8. Increased Fragmentation of Channels Advertising Today 8
  9. 9. Traditional Marketing Ecosystem The “Line” 9
  10. 10. Push vs. Pull Push Pull 10
  11. 11. Change In Marketing BudgetsSource: E-Consultancy and SAS, Marketing Budgets 2011, Feb 2011 11
  12. 12. How Big Is The Marketing Mix Challenge? Global Advertising Spending by Segment (US$ millions) 700,000 Advertising spending is on a 600,000 strong growth Trade magazines trajectory after 500,000 Directories taking a dip in 2009 Out-of-home 400,000 Radio Global advertising Newspapers spending is 300,000 Consumer magazines expected to exceed Video games Cinema half a trillion 200,000 Television dollars in 2013 Internet: wired and mobile 100,000 Fastest growing channel is internet 0 2006 2007 2008 2009 2010p 2011 2012 2013 2014 2015 and largest channel Note: Television, radio, newspaper, consumer magazine, trade magazine, and directory Web site remains TV and mobile advertising is included in the respective segments and in the Internet advertising segment but only once in the overall total. Sources: PricewaterhouseCoopers LLP, Wilkofsky Gruen Associates 12
  13. 13. Marketing Challenges: Financial Pressures  Aggressive corporate goals & objectives  Reductions in budgets  Increased accountability and scrutiny into marketing budgets 13
  14. 14. Marketing Mix Process • Measure sales contributions of marketing activities• Allocate resources appropriately • Analyze ROMI• Monitor effectiveness Understand • Measure performance The Past vs. target• Understand what to change to improve • Understand performance & when performance trends• Consistently drive the best decisions through deep insight Execute & Forecast, Plan Monitor & Optimize • Explore impact of competing marketing plans • Incorporate expected external factors • Apply business constraints • Optimize against business objectives 14
  15. 15. Understanding The Past: Developing Model R² = 31%KPI Weeks Distribution Price Reality Model 1 15
  16. 16. Understanding The Past: Developing Model R² = 55%KPI Weeks Distribution Price Advertising Reality Model2 16
  17. 17. Understanding The Past: Developing Model R² = 70%KPI Weeks Distribution Price Advertising Promotions and Trade Reality Model 3 17
  18. 18. Understanding The Past: Developing Model The model explains 95% R² = 95% of the sales variationKPI Weeks Distribution Price Advertising Promotion and Trade Competitors Seasonality Reality Model4 18
  19. 19. Isolating Brand’s Sales Drivers Where do our incremental sales come from? How are my sales affectedSOM by competitor activity? weeks price vs category main competitors advertising base number of variants available TV advertising Trade Marketing 20
  20. 20. Sales Response Curves Diminishing Returns How much should I spend in one Diminishing returns- channel overinvested channel to have impact but not to overspend? incremental salesWhere can we generate savingswithout hurting revenues andprofitablility? investement TV Online POS Direct Marketing 21
  21. 21. Scenario Planning & Optimization What is the impact on sales of different marketing plans? Understand Simulate the the past What will be the impact to my future sales if my competitor increases their advertising by 10%? scenario2 If I have to cut my budget which activity I cut first and by how much? scenario1 Simulate the futureKPI Weeks 22
  22. 22. Proven Ways Marketing Mix Optimization Pays Out Financial Strategic Organizational• Increased profit and revenue • Provided concrete evidence of • Improved efficiency of fiscal including: where marketing creates budget planning process • 10-15% lifts in revenue ROI, helping justify budget (know in advance where to • 20-25% in incremental increases and forecast the invest and socialize across balances impact of cuts lines of business) • 10-25%+ in ROMI• Example Client Results • Monitor performance of • Helped facilitate conversation investments and make course between lines of business on • $9MM increased revenue corrections as needed. where to invest/divest and why across 6 products ensuring organizational • $5MM saved by reducing alignment ineffective marketing • Aligned marketing budget to key strategic areas of • Increased MROI by 50% business focus and estimate the incremental return of that investment 23
  23. 23. Case Study: Automotive Manufacturer Business issue Solution Benefits• To sell 1 million vehicles in 12 We enabled them to: • Capture ROI metrics across months by leveraging greater marketing activities including • Understand what drove web advertising and public relations market intelligence shopping and automobile sales (PR)• As number 3 player in • Decrease spending on • “Halo” marketing effects were competitive mid-size sedan ineffective marketing activities uncovered from premium car market, customer needed to across TV, Radio, Web, and Print brand advertising reach its target market with • $5.1 million saved by reducing greater effectiveness and • Reallocate marketing funds to ineffective marketing efficiency more effective marketing communications • $8.6 million lift in sales due to changes in marketing plan (and • Perform “what if” analysis to they exceeded their forecast of project future shopping and selling over 1 million sedans by sales year end) 24
  24. 24. Marketing Mix Optimization - Case Study A television network is seeking decision science support to improve return on investment for the marketing of primetime television shows• How effective is our current marketing spend?• Which shows should get more marketing dollars?• Which channels are the most effective? Most efficient?• Based on current practices, where are we over-saturated?
  25. 25. Marketing Mix Optimization - Case Study
  26. 26. Marketing Operations Management 27
  27. 27. Marketers Tell Us… They are being asked to do more with the same or fewer resources in less time. They lack visibility into marketing activities to ensure alignment with organizational objectives and strategies They often do not have a way to effectively manage and measure marketing spend. They lack a central system of record for collaboratively managing their portfolio across all channels Their processes are neither optimized nor consistent across all channels Their processes, assets and data are not readily available for re-use 28
  28. 28. How Do You Manage Your Marketing Operations?There is a better way…. 29
  29. 29. Marketing Operations Management Software Can Help Organizations Improving the marketing velocity by enabling the marketing team to perform more effectively and efficiently Providing greater transparency & visibility into the process Providing automated processes to manage all aspects of your marketing operations including  Planning  Process Management  Budgeting and Spend Management  Performance and Financial Tracking 30
  30. 30. Marketing Operation Workflow Planning Calendars/Resources Budgets/PerformanceReports Execution Dashboards/Reports Workflows/Approvals Integration/Warehouse Estimates/Expenses Content Assets/Sites Customization 31
  31. 31. Marketing Planning CMO, Marketing VPs Corporate Finance Marketing Analytics• Determine Overall Marketing Strategy• Annual Marketing Planning and Budget allocation• Establish Metrics and Key Performance Indicators 32
  32. 32. Planning & Budgeting – Conceptual FrameworkCEO, CFO, CMO EnterpriseVP Marketing Plan for BU1 Plan for BU2 Plan for BU3…Brand, Product, Product Integrated Events & CollateralMarketing Managers Launch Campaigns Tradeshows …Campaign Print, TV, Direct Online &Manager Radio, Outdoor Marketing Social MediaMarketing Services Email Direct Mail Telemarketing Door-to-doorCreative AgencyPrinters Budgets & Resources & Digital Metrics & Workflows Spends Calendars Assets KPIs 33
  33. 33. Marketing Execution Requestor Project Manager Contributors Brief Project Tasks Deliverables• Align Marketing Plans w/ Overall Strategy• Marketing Deliverable Planning & Budget Allocation• Process Automation to Streamline Collaboration & Execution• Resource Management & Time Tracking 34
  34. 34. Manage & Monitor Projects 35
  35. 35. Digital Asset Management Agency Contributors End Users• Central Repository of all Digital Assets• Catalogue Digital Assets for History & Re-use• Digital Rights Management for Compliance Tracking• Enable process ownership vs. hiring 3rd party support 36
  36. 36. Digital Asset Management 37
  37. 37. Analytics & Reporting CMO, Marketing VPs Corporate Finance Marketing Analytics Agency Contributors• Real-time Reporting on Marketing Activities• Enable Closed-Loop Marketing• Integrate with Enterprise Data Warehouse• Out-of-the-box &Ad hoc Reporting 38
  38. 38. Marketing Analytics & Reports 39
  39. 39. Analyze The Campaign 40
  40. 40. Integrated Marketing Management (IMM) Plan Created Marketing Workflow Build Campaign • Marketing Calendar •Deliverable created Details • Budgets created •Tasks defined • Counts generated •Gather brief info • Campaign ready for •Gather UDF info approval •Initiate campaign to CM •Email Sent Send to Scheduler Campaign Approval Campaign Review • Schedule created and • Campaign is approved • Counts sent to scheduler or • State changed to • Brief details Admin approved in CM • Treatments • Email Sent 41
  41. 41. Advantages of IMM Enhanced collaboration between marketing strategists, project managers, and campaign analysts Improved productivity via both top-down and bottom-up direct marketing campaign planning and execution, as well as reusability of all facets of marketing campaigns  Including segments, creative materials, workflow, etc. Increased visibility as a result of being able to plan, execute, and track all campaign types within a central repository  “Above the line” or indirect marketing such as TV advertisements, billboards, and radio ads  “Below the line” marketing such as direct mail/email/mobile/website personalization) 42
  42. 42. Case Study: Consumer Packaged GoodsBusiness Issue Ownership of final artwork with agencies “Without this approach, it Huge losses in collateral management because of would take four project no digital asset re-use coordinators instead of two Mismanagement of content, no collateral tracking to process the transactions. system This has resulted in annual cost savings of more than $200,000.”Results Director, Creative Services Approvals cycles reduced from 14 to 2 weeks No defects in graphics development Annual artwork savings of $3 Million Overall 25% Productivity gain 43
  43. 43. Case Study: Global AgribusinessBusiness Issue New corporate and brand identity needed Better ongoing maintenance of brand assets required Manual processing of artwork delayed product launches Cost transparency not feasibleResults Design approval backlog has been eliminated and total design time has reduced by 50%. Yearly savings of $200,000 on production and distribution of identity manuals. Yearly savings of $2 million on streamlining design process of digital printing. Total cost per packaging label has been reduced by 65%. 44
  44. 44. Questions?
  45. 45. THANK YOUC op yr i g h t © 2 0 1 2 , S A S I n s t i t u t e I n c . A l l r i g h t s r es er v e d .