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Global Environment

Slide 1. International Marketing 70-480, Session 13 Lloyd Corder, Ph.D. Global Environment. Assessments. Corder’s Questions. Slide 2. If an ad is creative or visually arresting, is it effective? What is marketing ROI and why should I care about it?

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Global Environment

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  1. Slide 1 International Marketing 70-480, Session 13 Lloyd Corder, Ph.D. Global Environment Assessments

  2. Corder’s Questions Slide 2 • If an ad is creative or visually arresting, is it effective? • What is marketing ROI and why should I care about it? • What are some of the basic ROI measurement tools and when should I use them? • What’s the best process for measuring ROI? Believe in the power of feedback. 13. Assessments International Marketing 70-480 Lloyd Corder, Ph.D.

  3. If an ad is creative or visually arresting, is it effective?? Slide 3 1. 13. Assessments International Marketing 70-480 Lloyd Corder, Ph.D.

  4. Slide 4 Is this ad effective? 13. Assessments International Marketing 70-480 Lloyd Corder, Ph.D.

  5. Slide 5 What about this one? 13. Assessments International Marketing 70-480 Lloyd Corder, Ph.D.

  6. Slide 6 Surely, this one must be effective? 13. Assessments International Marketing 70-480 Lloyd Corder, Ph.D.

  7. Slide 7 Marketing ROI (Return On Investment) ROI… Image and/or leads Cleverness  Marketing and advertising effectiveness 13. Assessments International Marketing 70-480 Lloyd Corder, Ph.D.

  8. What is marketing ROI (marketing accountability) and why should I care about it? Slide 8 2. 13. Assessments International Marketing 70-480 Lloyd Corder, Ph.D.

  9. Slide 9 Measuring Marketing ROI • Everyone agrees it’s important, but few actually do it, less do it well and even fewer agree on how, what and when to do it • Many view measuring marketing ROI as a final reporting mechanism—and don’t start thinking about it until well after a program is implemented • Confusion between “program” and “tactic” measures • Program measures = overall effectiveness of entire effort (sales, better image, etc.) • Tactical measures = overall effectiveness of specific tactics (number of impressions, bingo cards, etc.) 13. Assessments International Marketing 70-480 Lloyd Corder, Ph.D.

  10. Slide 10 Marketing Challenges Branding Challenges How Marketing ROI Can Help • Making products and services stand out • Selling products that only a few people know about • Determining the best way to increase visibility • Changing branding elements too soon • By learning what customers and prospects see as your strengths (or limitations) you get a better idea of what you need to communicate (or overcome) Focuses your marketing and communications messages 13. Assessments International Marketing 70-480 Lloyd Corder, Ph.D.

  11. Establishing clear marketing objectives and developing a plan that works Taking enough time to strategize the best approach (being “proactive” not “reactive”) Convincing management that marketing produces valuable results that wouldn’t have happened without marketing Slide 11 Marketing Challenges, cont. Strategy Challenges How Marketing ROI Can Help • Gives you a “yardstick” you can use to measure progress—tells you what worked and why Helps you know whether you reached your goals or by how much you missed them 13. Assessments International Marketing 70-480 Lloyd Corder, Ph.D.

  12. Shortening sales cycles Generating enough qualified leads to meet overall sales goals Writing, developing and designing effective sales materials Connecting marketing to sales and making sure both functions serve broader corporate objectives Slide 12 Marketing Challenges, cont. Selling Challenges How Marketing ROI Can Help • When you know what’s working, you can prioritize marketing investments and build efficiencies into your system Helps you decide where to invest your dollars and how many to spend 13. Assessments International Marketing 70-480 Lloyd Corder, Ph.D.

  13. Slide 13 Marketing vs. Finance Marketing Finance Marketing ROI 13. Assessments International Marketing 70-480 Lloyd Corder, Ph.D.

  14. Acquisitions/Exit Strategies Investments in the Business Corporate Image/Reputation Contributions to Society Profit and Return Customer Satisfaction/Retention Employee Retention Shareholder Acquisition/Retention Market Share/Growth Business Goals Marketing ROI Assessments and Adjustments Marketing ROI Assessments and Adjustments Marketing Program(s) Marketing Tactic(s) Slide 14 Entire Marketing Effort Marketing ROI Marketing ROI can boost the value of the marketing function 13. Assessments International Marketing 70-480 Lloyd Corder, Ph.D.

  15. Slide 15 Excuses for Not Measuring ROI • Don’t know how • Don’t know what “right” looks like • Afraid of what might be found • Fuzzy goals • Don’t know who to do or use ROI evaluation • Tried, but failed before—so stopped trying • Don’t have internal tracking systems already in place • Prefer using only one measure (instead of several) • Measure wrong parts of the process • Would rather spend the money on more marketing • Think measuring marketing ROI should be free and effortless • Haven’t been forced to document results by their boss • View measurement as a one-time event • Can’t find anyone qualified to delegate it to 13. Assessments International Marketing 70-480 Lloyd Corder, Ph.D.

  16. Slide 16 How B2Bs Measure ROI • Methods: Mail survey, 480 B2B marketers, 1999 • Highlights: • Nine in ten measure ROI • 60% track leads by tactic • 57% track awareness changes • 54% count Web hits • Most want more marketing ROI tools • ROI problems: • Only 61% work from predetermined, measurable goals • Evaluation is sporadic (17% measure everything; 11% measure nothing) • 44% couldn’t define “good” marketing ROI Predictions Marketing will be hot, but only one part of mix Research will expand, more ROI measurement 13. Assessments International Marketing 70-480 Lloyd Corder, Ph.D. Source: Lloyd Corder, Public Relations Quarterly

  17. Slide 17 Hottest B2B ROI Tools 13. Assessments International Marketing 70-480 Lloyd Corder, Ph.D.

  18. What are some of the basic ROI measurement tools and when should I use them? Slide 18 3. 13. Assessments International Marketing 70-480 Lloyd Corder, Ph.D.

  19. High 7. Lifetime Customer Value 6. Sales 5. Contacts Outcome Measures Relationship/ Commitment 4. Attitude 3. Awareness Slide 19 2. Placements Low Output Measures 1. Marketing Activity Levels of ROI Measurement 13. Assessments International Marketing 70-480 Lloyd Corder, Ph.D.

  20. Slide 20 1. Marketing Activity • Describes “how much” you did and based on what you can control • How many ads did you design?  • How many news releases did you send out? • How many trade shows did you attend? How many brochures did you hand out at those trade shows? • Did you call a list of prospects? If so, how many did you actually contact? How many did you try to contact a second time? • Tools • Internal record keeping and reporting • Binder, CD and/or presentation boards 13. Assessments International Marketing 70-480 Lloyd Corder, Ph.D.

  21. Slide 21 2. Placements • Describes the level of success you had in getting “amplifiers” (media, mail, etc.) to deliver your message to your prospects • How many publications picked up our press release? Which one(s)? • Was the article accurate? • Where were we featured in the publication? • Tools • Impressions • Ad dollar • Content analysis 13. Assessments International Marketing 70-480 Lloyd Corder, Ph.D.

  22. Slide 22 a. Impression Measurement • Impressions: Number of publication readers who could have been exposed to your message • Readership determined by circulation statistics (listed in reference publications) • Use a “clipping service” to read specific publications and gather articles/placements • Many programs have “millions” of impression • Generally not that impressive to senior management 13. Assessments International Marketing 70-480 Lloyd Corder, Ph.D.

  23. Slide 23 b. Ad Dollar Measurements • Answers the question, “How much was this media coverage worth to us if we had to pay for it?” • Process • Measure the length of the article • Multiply it by the cost for purchasing the same amount of ad space • Multiply it by some factor (10) because PR is “more persuasive” than advertising • Generally seen as a bogus practice 13. Assessments International Marketing 70-480 Lloyd Corder, Ph.D.

  24. Slide 24 c. Content Analysis Measure • Helps determine if the “right” message was picked up in the media coverage • Develop “success” criteria form (typically 1-10 format) • Key messages • Quotes from your staff • Picture/diagrams • Placement within specific “leading” publications and inside each publication (cover story, feature, etc.) • Relative placement/inclusion of competitors • Read and rate each placement • Tally overall results and/or create mean ratings • Problem: Process is time consuming and article values are often obvious by simply reading them 13. Assessments International Marketing 70-480 Lloyd Corder, Ph.D.

  25. Slide 25 3. Awareness & 4. Attitude • Describe how many people were familiar with your marketing tactics (articles, brochure, e-mail, etc.) and whether your marketing efforts persuaded anyone to think more favorably about your product or service • Tools • Baseline and follow-up surveys • Examples • National Aviary Wow! Index • American Iron & Steel Institute Tracking Questions • i2 Technologies Planet Supply Chain ROI Survey 13. Assessments International Marketing 70-480 Lloyd Corder, Ph.D.

  26. Slide 26 5. Contacts • Attempts to determine if marketing led to a desired behavior (trail, purchase, donation, brand switch, etc.) • Tools • Sales • Sales Cookbook • Customer interviews/surveys 13. Assessments International Marketing 70-480 Lloyd Corder, Ph.D.

  27. Slide 27 6. Marketing & Sales Cookbook 13. Assessments International Marketing 70-480 Lloyd Corder, Ph.D.

  28. Slide 28 Improving Success (20%) • 20% move to each next step • It takes 125 contacts to make one sale Challenge: Create the right mix of marketing tools and sales technique to win—and keep—business. 13. Assessments International Marketing 70-480 Lloyd Corder, Ph.D.

  29. Slide 29 Improving Success (25%) • 25% move to each next step • It takes 63 contacts to make one sale • A 5% overall improvement between each step (25% up from 20% closing ratio) doubles the total sales 13. Assessments International Marketing 70-480 Lloyd Corder, Ph.D.

  30. Slide 30 Copycat ROI Cookbook 13. Assessments International Marketing 70-480 Lloyd Corder, Ph.D. Source: Lloyd Corder, Communication World

  31. Slide 31 7. Lifetime Customer Value • Acquisition marketing = always focused on finding the NEXT customer • Lifetime customer value = focused on the value a single customer might bring over the lifetime of the relationship and includes: • The total amount of revenue the customer will spend over the life of your relationship. • The total number of referrals (and their worth) to your organization. • Advice, recommendations and other insights about new products and services. • Assistance with articulating and defining your organization’s brand image. • Giving your business a fighting chance to succeed long-term and outlive your competition. 13. Assessments International Marketing 70-480 Lloyd Corder, Ph.D.

  32. Slide 32 Lifetime Value Example • A customer who generates $10,000 a month to your business ($10,000 X 12 = $120,000 per year). • On average, customers stay with you three years ($120,000 X 3 = $360,000). • Most customers give you one referral a year to a customer who is also worth $10,000 per month ([$10,000 X 12 = $120,000] X 3 = $360,000). • And this customer gives you a product idea which generates an additional $25,000. • Total lifetime customer value: $745,000. 13. Assessments International Marketing 70-480 Lloyd Corder, Ph.D.

  33. What’s the best process for measuring ROI? Slide 33 4. 13. Assessments International Marketing 70-480 Lloyd Corder, Ph.D.

  34. Slide 34 5 Steps to Measuring ROI • Set measurable goals • Use more than one measurement tool • Agree with senior management on what’s to be measured and how • Beg, borrow and steal • Write for the right audience 13. Assessments International Marketing 70-480 Lloyd Corder, Ph.D.

  35. Slide 35 1. Set Measurable Goals • Professional service firm wanted to measure impact of less expensive health insurance changeover (last one went terrible) • Goal #1: To present benefits information clearly and more thoroughly than before • Goal #2: To reduce negative reactions to the benefits of change • ROI Tool: Employee survey • Goal #3: To reduce the time that benefits staff devoted to the difficult and confusing changeover period • ROI Tool: Telephone log showed half as much time with this changeover than the last 13. Assessments International Marketing 70-480 Lloyd Corder, Ph.D.

  36. Slide 36 2. Use multiple Measurement Tools • Realize that many ROI findings are not “clear cut,” so “proof” from several sources is very helpful (company data, surveys, sales, etc.) • Neither of these may be persuasive by itself • Impressions (number of people who saw a news/trade article) • Before/after customer opinion surveys • Sales records that include multiple marketing efforts • However, together they have a stronger chance of creating the desired impact 13. Assessments International Marketing 70-480 Lloyd Corder, Ph.D.

  37. Slide 37 3. Agree on What’s Being Counted • What data are you collecting, who gathers it and how do they get it? • How often do you collect data, and how will you know when to stop collecting it? • What will the data look like in the final report? • In what ways will the data help you prove or improve the effectiveness of internal communications? 13. Assessments International Marketing 70-480 Lloyd Corder, Ph.D.

  38. Slide 38 4. Beg, Borrow or Steal • Determine what’s already being collected inside the company • Company records (call-ins, complaints, sales, accounting data, surveys, etc.) • If possible, modify existing data collection tools to do “double duty” as marketing ROI tools • Add ROI questions to an existing customer survey • Ask “How did you find out about us?” to receptionist introductions and track the results • Add surveys to your website • Look for external resources (industry surveys, rankings, advertising publication surveys, etc.) 13. Assessments International Marketing 70-480 Lloyd Corder, Ph.D.

  39. Slide 39 5. Write for the Right Audience • The clearer your results, the more people will think your program had an impact • Use simple sentences and statistics (percentages and means) • If possible, limit it to one page or graph • Acid Test: • Can a reasonably intelligent stranger grasp the essentials of your report in one reading? If not, rewrite it! 13. Assessments International Marketing 70-480 Lloyd Corder, Ph.D.

  40. Slide 40 Corder’s Conclusions • Measuring marketing ROI is possible, it just takes commitment and dedication • The best measurements are simple and consistent • A variety of tools is best, because it’s hard to prove 100% effectiveness with only one measure • Agree on ROI measures before launching the marketing program—it’s almost impossible to retrofit ROI designs into your marketing program Believe in the power of feedback! 13. Assessments International Marketing 70-480 Lloyd Corder, Ph.D.

  41. Slide 41 13. Assessments International Marketing 70-480 Lloyd Corder, Ph.D.

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