MARKETING CONSULTANT ADELAIDE

Why are marketing consensus measurements necessary

To create and demonstrate marketing value, a range of factors, expectations, and measurement determines successful marketing outcomes in a company.

Forbes accountability report powered by MASB, states that without establishing consensus measurements (what do you measure, how do you measure, are the measurements valuable and relevant?), it is clear that marketing will “face credibility gasps and the enterprise value creation suffers“.

Therefore, to re-calibrate your current marketing agenda, a range of upper-level management consensus decisions need to come into place in terms of what marketing’s focus should be.

Why does marketing need marketing consensus measurements?

When creating marketing value for a company, the main challenge is understanding the financial impact of marketing investments. Especially since many brand and customer metrics such as brand awareness and customer preference are marketing interim measurements, i.e., not directly linked to financial outcomes.

Since marketing needs to translate and link these marketing performance measurements to financial outcomes, it is crucial to gain senior management’s consensus on key selected measures.

Understanding and agreeing on the trade-offs between establishing short-term marketing ROI metrics and the benefits of longer-term value improvement is essential. These include, for example, brand health and customer experience, where the return on investment is typically difficult to measure in the same financial year.

Examples of marketing consensus measurement questions

As brand equity, customer equity and channel of trades are intangible marketing assets, it becomes imperative to understand the connection between marketing expenditures and these intangible assets.

Coupled with segment-based insight-driven innovation and the pace at which a marketing department moves along the digital maturity curve, it is crucial that marketing consensus measurements are being developed.

For example, where is the trade-off between short-term direct campaign revenue attribution vs. longer-term value and efficiency improvement in brand health, customer experience, segment-based insight-driven innovations, and moving up the digital maturity curve?

Some typical marketing consensus measurement questions may include:

• Is long-term brand building relevant for the company’s growth, and if so, what are the appropriate interim measurements?
• Is customer experience and customer satisfaction necessary for company growth, and if so, what are the relevant interim measurements?
• Is it essential that marketing is involved in the innovation process? If so, how is marketing success measured?
• Has the channel of trades being optimised, and if not, should marketing shift focus?
• Is it essential that marketing moves along the digital maturity curve, and if so, what is the optimum sweet spot to be aligned to company goals?

When do you discuss marketing consensus measurements?

Some companies may establish consensus measurements as part of defining marketing operational excellence; others lift the discussion into the operating planning process to ensure alignment between business goals and marketing-based objectives.

Marketing and value creation 

So, for a marketer and a marketing function, regardless of industry, to become excellent in all these areas is a huge ask. And when you add that the approaches and models used within those drivers are constantly evolving, it seems like a big mountain to climb. 

However, when describing marketing excellence in short, it can be summarised as building a segment-based insight-driven approach (or innovation) with unique brand propositions and developing customer and distribution strategies for distinct target markets. When marketing programs are implemented, they need to be continuously evaluated to generate return. 

Basically, it is about marketing value creation. Building long-term profitable growth by focusing on critical strategic marketing value drivers, ultimately delivering customer value. 

Value creation in marketing

Even if developing a marketing plan is a requirement for any business today, there is a risk that small and mid-sized companies with fewer resources don’t have a plan. Research suggests that it is the case for up to 50% of small businesses. The reasons are many, including not understanding why it is important to have one as there are so many other business priorities. 

Marketing has evolved into a high-rise building that constantly adds new floors to its construction. As a result, marketing skills and capabilities have become fragmented and niche, and new areas of marketing expertise are continually emerging. 

This poses a challenge for most marketers as they need to keep up with these new requirements. Consequently, the focus is often geared towards marketing tactics rather than strategically thinking about how to create long-term marketing value. 

Marketing value creation

Much has been written about how leading global companies’ market value is made up of intangible marketing assets and investments in building brand equity, customer equity and channel of distribution networks over time.   

What’s clear, though, is that small and mid-sized businesses can adopt the same approach as large enterprises, just scaling it down. A marketing approach of systematically building the brand, focusing on the customer, developing their distribution channels, and actively participating in a company’s innovation process is really about putting marketing excellence into action. It is about rising above the marketing tactics and short-term thinking and building a strategic marketing foundation for growth. Easier said than done of course when the pressure is on to deliver short-term result. 

Some say that marketing is evolving, others say that new rules apply, and sometimes people use words like marketing revolution. No matter what industry, everyone is looking to re-calibrate and transform to win.  

If you want to hear more about how to create marketing value and building strategic marketing excellence for your business, please contact Adelaide marketing consultant Mikael Svensson.