marcom planning analysis & reporting
DESCRIPTION
Guidelines for marketing communications planning to enable corporatewide ROI analysis & reporting.TRANSCRIPT
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Marcom Analysis & ReportingOctober 3, 2002
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Marcom Analysis & Reporting
Objectives Accomplishments to dateOverview of Marcom ROI
modelDependencies
TopicsTopics
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Marcom Analysis & Reporting
ObjectivesObjectives
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Track performance of campaigns & communication channels
Marcom Analysis & Reporting
ObjectivesObjectives
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Track performance of campaigns & communication channels
Inform budget planning & allocation
Marcom Analysis & Reporting
ObjectivesObjectives
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Track performance of campaigns & communication channels
Inform budget planning & allocation
Enable channel management & strategic customer contacts
Marcom Analysis & Reporting
ObjectivesObjectives
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Track performance of campaigns & communication channels
Inform budget planning & allocation
Enable channel management & strategic customer contacts
Establish effective reporting process
Marcom Analysis & Reporting
ObjectivesObjectives
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Track performance of campaigns & communication channels
Inform budget planning & allocation
Enable channel management & strategic customer contacts
Establish effective reporting process
Deliver customer-oriented research
Marcom Analysis & Reporting
ObjectivesObjectives
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Track performance of campaigns & communication channels
Inform budget planning & allocation
Enable channel management & strategic customer contacts
Establish effective reporting process
Deliver customer-oriented research
Determine Marcom ROI
Marcom Analysis & Reporting
ObjectivesObjectives
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Marcom Analysis & Reporting
Accomplishments to Accomplishments to datedate
Roll up/reporting of 2002 activitiesReports for analysis of media creative costsIdentified marcom baselinesEstablished benchmarks for marcom mix allocationEnabled revenue reporting
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Marcom Analysis & Reporting
Overview of Marcom ROIOverview of Marcom ROI
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Marketers surveyed by MLC* waste on average 26% of marketing budget
Marcom Analysis & Reporting
Overview of Marcom ROIOverview of Marcom ROI
*Marketing Leadership Council Benchmarking Research: Measuring Marketing Performance, August, 2001
1%3%4%
19%20%
36%
17%
1-10% 11-20% 21-30% 31-40% 41-50% 51-60% 61-70%
% of MLC Respondents
Average Waste = 26% of Budget
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MLC survey* shows limited ability to calculate marketing ROI
Marcom Analysis & Reporting
Overview of Marcom ROIOverview of Marcom ROI
*Marketing Leadership Council Benchmarking Research: Measuring Marketing Performance, August, 2001
6%
24%
35%30%
5%
0% 1-25% 26-50% 51-75% 76-100%
% of MLC Respondents
Fewer than a third of marketers can show returns for more than half of their marcom spend.
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MLC obstacles to improved ROI:
Marcom Analysis & Reporting
Overview of Marcom ROIOverview of Marcom ROI
*Marketing Leadership Council Benchmarking Research: Measuring Marketing Performance, August, 2001
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MLC obstacles to improved ROI:Lack of data (58%)
Marcom Analysis & Reporting
Overview of Marcom ROIOverview of Marcom ROI
*Marketing Leadership Council Benchmarking Research: Measuring Marketing Performance, August, 2001
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MLC obstacles to improved ROI:Lack of data (58%)Lack of consistency in measurement (52%)
Marcom Analysis & Reporting
Overview of Marcom ROIOverview of Marcom ROI
*Marketing Leadership Council Benchmarking Research: Measuring Marketing Performance, August, 2001
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MLC obstacles to improved ROI:Lack of data (58%)Lack of consistency in measurement (52%)Lack of expertise (50%)
Marcom Analysis & Reporting
Overview of Marcom ROIOverview of Marcom ROI
*Marketing Leadership Council Benchmarking Research: Measuring Marketing Performance, August, 2001
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1. Must know current value of the customer
Marcom Analysis & Reporting
Requirements for measuring ROI*Requirements for measuring ROI*
*Measuring Brand Communication ROI by Schultz & Walters
?
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1. Must know current value of the customer
Marcom Analysis & Reporting
Requirements for measuring Requirements for measuring ROI*ROI*
*Measuring Brand Communication ROI by Schultz & Walters
?X Must be able to identify messages sent
to customer
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1. Must know current value of the customer
Marcom Analysis & Reporting
Requirements for measuring Requirements for measuring ROI*ROI*
*Measuring Brand Communication ROI by Schultz & Walters
?X Must be able to identify messages sent
to customer Must be able to measure the difference in response (income flow) from customer/prospect
X
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Focus on business-building communications
vs. brand-building communications:
Marcom Analysis & Reporting
Model for measuring ROIModel for measuring ROI
Business Building Brand Building
Short-term returns
Transactions
Immediate expense
On the margin
Variable cost
Long-term returns
Brand value
Amortized investment
Replenishment
Fixed cost
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Marcom Analysis & Reporting
1. Assess Demand/Opportunity1. Assess Demand/Opportunity
Requirement Assumptions
Historical demand
Estimated % increase/decrease in demand
Adjusted demand
Total legal market and requirement expressed in dollars and percentages
Totals SMLF LLF Corp Gov Academic
$0
0.0%
$0
$0
0.0%
$0
$0
0.0%
$0
$0
0.0%
$0
$0
0.0%
$0
$0
0.0%
$0
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Marcom Analysis & Reporting
2. Assess Income Flow vs. 2. Assess Income Flow vs. CostsCostsIncome Flow Assumptions
Base share of requirement
Base income flow to West
West share of market and requirement expressed in dollars and percentages
Totals SMLF LLF Corp Gov Academic
0.0%
$0
0.0%
$0
0.0%
$0
0.0%
$0
0.0%
$0
0.0%
$0
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Marcom Analysis & Reporting
2. Assess Income Flow vs. 2. Assess Income Flow vs. CostsCostsIncome Flow Assumptions
Non-Communication costs ($)
Non-Communication costs (%)
Communication costs
Advertising
Direct Mail
Internet
Trade Show
Promotion
Sponsorship
Publicity/PR
Distinguish communication expenses from non-communication expenses
Totals SMLF LLF Corp Gov Academic
$XX
X%
$XX
$x
$x
$x
$x
$x
$x
$x
$XX
X%
$XX
$x
$x
$x
$x
$x
$x
$x
$XX
X%
$XX
$x
$x
$x
$x
$x
$x
$x
$XX
X%
$XX
$x
$x
$x
$x
$x
$x
$x
$XX
X%
$XX
$x
$x
$x
$x
$x
$x
$x
$XX
X%
$XX
$x
$x
$x
$x
$x
$x
$x
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Marcom Analysis & Reporting
2. Assess Income Flow vs. 2. Assess Income Flow vs. CostsCostsIncome Flow Assumptions
Contribution Margin ($)
Contribution Margin (%)
Income flow from each segment (less communication and non-communication costs) expressed in dollars and percentages
Totals SMLF LLF Corp Gov Academic
$XX
X%
$XX
X%
$XX
X%
$XX
X%
$XX
X%
$XX
X%
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Marcom Analysis & Reporting
3. Determine baseline with no marcom 3. Determine baseline with no marcom spendspend
No Communication Investment
Change in Share Requirement (+/-)
Resulting Share of Requirement
Resulting Customer Income Flow to West
Less: Non-Communication Costs
Less: Communication Cost
Net Contribution
Assumptions:
Totals SMLF LLF Corp Gov Academic
X%
X%
$x
$x
$x
$X
X%
X%
$x
$x
$x
$X
X%
X%
$x
$x
$x
$X
X%
X%
$x
$x
$x
$X
X%
X%
$x
$x
$x
$X
X%
X%
$x
$x
$x
$X
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Marcom Analysis & Reporting
3. Determine baseline with no marcom 3. Determine baseline with no marcom spendspend
No Communication Investment
Change in Share Requirement (+/-)
Resulting Share of Requirement
Resulting Customer Income Flow to West
Less: Non-Communication Costs
Less: Communication Cost
Net Contribution
Assumptions:
Totals SMLF LLF Corp Gov Academic
X%
X%
$x
$x
$x
$X
X%
X%
$x
$x
$x
$X
X%
X%
$x
$x
$x
$X
X%
X%
$x
$x
$x
$X
X%
X%
$x
$x
$x
$X
X%
X%
$x
$x
$x
$X
Customer requirement remains the same1.
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Marcom Analysis & Reporting
3. Determine baseline with no marcom 3. Determine baseline with no marcom spendspend
No Communication Investment
Change in Share Requirement (+/-)
Resulting Share of Requirement
Resulting Customer Income Flow to West
Less: Non-Communication Costs
Less: Communication Cost
Net Contribution
Assumptions:
Totals SMLF LLF Corp Gov Academic
X%
X%
$x
$x
$x
$X
X%
X%
$x
$x
$x
$X
X%
X%
$x
$x
$x
$X
X%
X%
$x
$x
$x
$X
X%
X%
$x
$x
$x
$X
X%
X%
$x
$x
$x
$X
Customer requirement remains the same1.
West share of requirement will decrease2.
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Marcom Analysis & Reporting
3. Determine baseline with no marcom 3. Determine baseline with no marcom spendspend
No Communication Investment
Change in Share Requirement (+/-)
Resulting Share of Requirement
Resulting Customer Income Flow to West
Less: Non-Communication Costs
Less: Communication Cost
Net Contribution
Assumptions:
Totals SMLF LLF Corp Gov Academic
X%
X%
$x
$x
$x
$X
X%
X%
$x
$x
$x
$X
X%
X%
$x
$x
$x
$X
X%
X%
$x
$x
$x
$X
X%
X%
$x
$x
$x
$X
X%
X%
$x
$x
$x
$X
Customer requirement remains the same1.
West share of requirement will decrease2.
Change of requirement estimates based on historical data and management judgment
3.
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Marcom Analysis & Reporting
4. Estimate impacts of communication investment 4. Estimate impacts of communication investment
Communication Investment
Communication Efforts (initiatives)
Contact Points
Total Communication Investment
Change in Share of Requirement (+/-)
Resulting Share of Requirement (%)
Resulting Customer Income Flow to West
Less: Non-Communication Costs
Less: Communication Costs
Net Contribution
Measure total investment against customer groups
Totals SMLF LLF Corp Gov Academic
X
X
$x
X%
X%
$X
$x
$x
$X
X
X
$x
X%
X%
$X
$x
$x
$X
X
X
$x
X%
X%
$X
$x
$x
$X
X
X
$x
X%
X%
$X
$x
$x
$X
X
X
$x
X%
X%
$X
$x
$x
$X
X
X
$x
X%
X%
$X
$x
$x
$X
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Marcom Analysis & Reporting
5. Determine marcom ROI 5. Determine marcom ROI
ROI Calculation
Incremental gain/loss vs. no investment
Incremental ROI
Compare total investment to resulting change in income flow
Totals SMLF LLF Corp Gov Academic
$x
x%
$x
x%
$x
x%
$x
x%
$x
x%
$x
x%
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Marcom Analysis & Reporting
Dependencies & Dependencies & Impediments Impediments Data:
Don’t know market size/share
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Marcom Analysis & Reporting
Dependencies & Dependencies & Impediments Impediments Data:
Don’t know market size/shareDon’t know customer value (LTV)
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Marcom Analysis & Reporting
Dependencies & Impediments Dependencies & Impediments
Data:
Don’t know market size/shareDon’t know customer value (LTV)BMMS is lower priority client for DBM
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Marcom Analysis & Reporting
Dependencies & Dependencies & Impediments Impediments
Commitment:
Top & Middle Management support
Data:
Don’t know market size/shareDon’t know customer value (LTV)BMMS is lower priority client for DBM
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Marcom Analysis & Reporting
Dependencies & Impediments Dependencies & Impediments
Commitment:
Top & Middle Management support
Data:
Don’t know market size/shareDon’t know customer value (LTV)BMMS is lower priority client for DBM
Consistent budget management
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Marcom Analysis & Reporting
Dependencies & Impediments Dependencies & Impediments
Commitment:
Top & Middle Management support
Data:
Don’t know market size/shareDon’t know customer value (LTV)BMMS is lower priority client for DBM
Consistent budget managementResources:Manage/maintain marcom roll-up & reporting
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Marcom Analysis & Reporting
Dependencies & Impediments Dependencies & Impediments
Commitment:
Top & Middle Management support
Data:
Don’t know market size/shareDon’t know customer value (LTV)BMMS is lower priority client for DBM
Consistent budget managementResources:Manage/maintain marcom roll-up & reportingExpertise to build marcom ROI model