Posts Tagged ‘marketing performance’

What Are You Trying to Make Happen? And How Will You Measure Progress?

Wednesday, August 11th, 2010

“When you don’t know where you’re going,
any road will get you there.”
- Cheshire Cat, Alice in Wonderland

Violent crime in America declined each year from 1993 to 2004. Then just about the time the iPod became popular in 2005, violent crime began trending upward.  CONCLUSION: iPods cause violent crime. Or at least that was the conclusion of a 2007 report published by The Urban Institute, a research organization based in Washington. (no, really.)

Poor advertising strategies stem from just such logic: “Since one event precedes another, the first event must be the cause of the second.” This fallacy of logic is so common it has a Latin name: Post hoc, ergo, propter hoc, “after this, therefore, because of this,” referring to the mistaken belief that temporal succession implies a causal relation.

Most business owners look around, observe their circumstances and then try to make sense of it all. Their thoughts and plans are guided by what they see. But any scientist will tell you correlation and causation are not the same thing.

Don’t tell me what you see. Tell me what you want to see. “What are you trying to make happen? And how will you measure progress?” When I ask these questions, most business owners stammer, stutter and hedge, then change the subject by asking a question of their own.

I usually ignore that question and ask, “How am I supposed to help you make something happen when you can’t tell me what it is?”

How many of your actions are actually reactions triggered by circumstances? Are we allowing the merely urgent to set aside the truly important?

Do you know what you’re trying to make happen? Can you tell me exactly how you plan to measure progress? The shortest distance from Point A to Point B is always a straight line. The best marketing strategies begin by drawing a straight line from Where We Are Today to Where We’d Like To Be Tomorrow.

No stack of dollars can be your lighthouse. Dollars are merely a byproduct. Money fails as a compass because it can be found in every direction.
Where do you want to be tomorrow?

Good. Now let’s get started.

Measuring Your Brand Effectiveness

Saturday, September 5th, 2009
Brand Measurement

Brand Measurement

How do you measure your business success? Where does your company stand, and where would you like to improve? It’s often about more than financial gains. Consider these seven ways to chart your business success.

1. Gross sales
Most companies rely on a single number to assess success: gross revenue from sales of products or services. But this figure can be misleading, particularly if you have high overhead or other expenses that can distort this snapshot of overall business activities. Calculating your gross revenue over a specific time period is a good place to start, but don’t rely on it as your only yardstick.

2. Profits
Imagine two very different businesses. One business with low overhead and high profit margins. The other is a much larger business with higher sales volume but with an overhead and other expenses that eat up much of the profits. Both companies end up with the same net profit. Which is the more appealing business? I argue that it’s the lean and nimble firm, one that drives profits while steering clear of the complexities that so often drain the management of a larger enterprise. Remember, at the end of the day, it’s net profits — not gross dollars — that really matter. (more…)

How is Your Brand Health?

Friday, August 28th, 2009

branding

Contrary to conventional wisdom, there is a key set of fundamental metrics — which can be actively managed — linking the health of a brand to revenue and consumer commitment.

Executives like to talk about strong brands as platforms for sustained growth. In the management literature, the link between brand equity and shareholder value is well accepted. So, why is the responsibility for brand-building not more actively managed in the executive suite?

In our work across sectors, we see companies often failing to “walk the talk” — unable to grasp the link between brand health and revenue commit­ment from customers. They treat brand-building superficially, believing that what matters is making brute-force impressions through large advertising campaigns.

Yet brand health is based on more than image and, through a set of key interrelated measures, can be linked to business performance.

How does the concept of brand health compare to the notion of brand equity?

Brand equity is linked to shareholder value. It is an intangible, long-term measure of a company, which is of little use to executives making investment trade-offs that affect top-line growth. By contrast, brand health is linked to current and future value with consumers and differences in com­petitive position. It is tangible and vital to managing brands and business performance on a forward-looking basis. (more…)

Integrated Marketing

Tuesday, July 21st, 2009

As marketers, we need ensure that we are doing everything we possible can to reach these consumers at a time when they are interested in our value proposition. This means that our message has to be where the consumers are looking all the time.

MarketingPerformance.net

The progression of marketing – moving beyond traditional to include interactive, consumer driven, social marketing has spread like MySpace users.

Our customers are ushering in a new era in which marketers blend communication messages across all available media channels into a continuous brand experience. As part of a successful integrated marketing strategy, Marketing Performance integrates public relations, advertising, online, social media, etc; and other communications elements into one cohesive entity all sharing the same message.

Many organizations today are now embracing this concept of integrated marketing. Instead of dividing marketing communications into separate groups that rarely communicate; organizations are now integrating all marketing disciplines under one umbrella; thus, making every communication consistent with one message, sharing the same strategy. This also allows marketers to execute marketing campaigns more efficiently without having to jump through hoops to get approvals for creative, content, messaging, etc. (more…)