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- Wiley
More About This Title Marketing Management For Non-Marketing Managers: Improving Returns on Marketing Investments
English
Although marketing-related expenses are a significant portion of most organizations’ budgets, it is often frustrating for those with budget oversight to get a clear picture of the returns on their marketing investment.
This engaging book offers practical ways for non-marketing managers and executives to measure and improve marketing returns. It gives you the tools you need to be able to correctly assess the potential of your marketing and accurately evaluate the returns. You’ll learn:
- Why market leaders achieve significantly greater returns on their marketing than others within their market.
- The 3 main reasons most marketing plans fail to live up to their potential, and the steps you must take to avoid these pitfalls.
- How to evaluate your marketing investment’s likely ROI before you invest the money.
- When and how to assess the financial returns of your marketing efforts.
- How well your own organization is performing in the management of its marketing investments.
The book includes:
- Case studies from companies of various sizes and in a cross-section of industries, including not-for-profits
- 4 tests to use prior to the approval of a marketing budget
- A marketing performance evaluation tool to assess and improve your organization’s marketing management
English
Heather L. Fitzpatrick is the founder, president and CEO of MarketFitz, Inc., a management consulting firm focused on helping clients deliver measurably improved financial returns on market-facing investments. Her clients include Fortune 500 corporations, middle-market companies and regional for-profit and not-for-profit organisations. A licensed CPA and CGMA with over 20 years’ experience as a a marketing professional, Fitzpatrick brings an unusual insight to her quest to help clients more effectively manage their marketing efforts.
English
Section 1: What is Marketing? 1
1 A Market Leader’s Definition of Marketing 3
How Market Leaders Define Marketing 4
Marketing, the Discipline, Versus Marketing, the Function 5
Marketing in Your Organisation—and in This Book 7
Chapter 1 Summary 8
Section 2: Managing the Discipline of Marketing 11
2 The Discipline of Marketing: the Foundation for Business Strategy 13
Why the Discipline of Marketing Produces the Crystal Ball Effect 14
Leveraging Market Insight 15
Opportunities: Identifying Unmet, Untapped or Underserved Market Needs 16
Threats: Understanding the Competition 17
Opportunities and Threats: Your Company’s Reputation 18
The Other Half of Marketing: Meeting Market Needs 19
Choosing a Market: The Challenge of Serving Many Masters 20
The Cost of Market Diversity 21
The Benefits of Market Focus 22
Focus Made the Difference 23
Choosing a Market 24
Translating Value Proposition Into Products and Services 25
Aligning Your Business Activities 27
The Point C Principle 27
The Importance of Vision 29
Developing Vision 29
Gap Analysis 30
Setting Business and Financial Objectives 30
Questions for Non-Marketing Managers to Ask About the Discipline of Marketing 31
Chapter 2 Summary 32
3 Brand Management Fundamentals 35
The Definition of Brand 35
The Building Blocks of a Strong Brand 36
Strong Brands Reflect the Company’s Value Proposition 37
Strong Brands Are Based on Truth 38
Companies With Strong Brands Are Good Corporate Citizens 38
Strong Brands Reflect the Image of the Merchant With Whom Their Customer Would Like to Do Business 39
The Value of a Strong Brand 40
Sources of Added Value Attributed to Brand 41
Increased Customer Preference 41
Reduced Promotional Cost 41
Reduced Price Sensitivity 41
Ability to Recruit and Retain Top Talent 42
Easier Access to Capital and Financial Markets 42
Public Benefit of the Doubt 42
Best Practices and Tools of the Brand Trade 43
Graphics Standards 43
Key Messages 46
Talking Points 48
Brand Audits 48
Brand Architecture 49
Mitigating and Addressing Brand Damage 50
Questions for Non-Marketing Managers to Ask About Brand Management 51
Chapter 3 Summary 52
Section 3: Evaluating Proposed Investments In The Marketing Function 57
4 Evaluating Marketing Plan Alignment 59
What Drives Returns on Marketing Investments 59
The Marketing Alignment Map 61
Targeted Business and Financial Objectives 62
Desired Brand Reputation 63
Influencing Factors 63
Marketing Strategies 64
Marketing Tactics 64
Expected Tactical Outcomes 66
Expected Marketing Outcomes 66
Expected Financial Returns 67
Evaluating Marketing Alignment 67
The Benefits of Alignment 68
Questions for Non-Marketing Managers to Ask About Evaluating Marketing Plan Alignment 68
Chapter 4 Summary 69
5 Understanding What Influences Market Behaviour 73
Do You Know Why Your Customer Chooses Your Company—and Why Non-Customers Don’t? 73
The Danger of Assumptions 74
What Your Marketing Function Needs to Know 75
Purchasing Decision Criteria 77
Clip-Level and Competitive Criteria 77
Market Segments 79
Understanding Relative Market Positions 80
Other Influencing Factors 81
Prioritising Influencing Factors 82
The Connection Between Influencing Factors, Marketing Strategies and Results 84
The Relative Importance of Price 85
Questions for Non-Marketing Managers to Ask About Factors Influencing Purchasing Behaviour 86
Chapter 5 Summary 87
6 Aligning Marketing Tactics With Influencing Factors 91
Tactics Are Not Strategies 91
Well-Crafted Marketing Strategies Provide Specific Guidance 93
Align Attributes to Pick the Right Tactic 94
Market Size 95
Market Demographics 96
Business-to-Business Versus Business-to-Consumer 96
Potential Impact on Influencing Factors 96
Brand Impact 96
The Competitive Environment 97
Cost-Benefit Analysis 97
Return Timeline 97
Complimentary Marketing Mixes 98
‘How’ Is as Important as ‘What’ 98
Special Considerations for International and Multi-Cultural Markets 99
Special Considerations for Not-for-Profits 100
Questions for Non-Marketing Managers to Ask About Aligning Marketing
Tactics With Influencing Factors 102
Chapter 6 Summary 102
7 Products and Services: The First ‘P’ of Tactical Marketing 107
Product Management and Innovation 108
The Alternative to Innovation Is Death 110
If Innovation Is Critical to Survival, Why Don’t Companies Do It? 111
Key Principles in Product Management 115
How the Product Life Cycle Affects Other Aspects of Marketing 115
The Impact of New Product or Service Introductions on Existing Products or Services 116
Discontinuing or Changing a Product or Service 117
Brand Considerations 118
Beyond the Product or Service 119
Outsourcing Products or Expertise 120
Questions for Non-Marketing Managers to Ask About Products and Services 121
Chapter 7 Summary 122
8 Placement or Distribution: The Second ‘P’ of Tactical Marketing 125
Go Where the Market Looks for Solutions 125
Balance Cost With Benefits 126
Consider the Impact on Brand 126
An Introduction to Channel Management 126
Direct Distribution 127
Indirect, or Channel, Distribution 132
Cutting Out the Middleman 135
Vertical Integration 135
Franchising and Licensing 136
Disintermediation 137
Creative Partnerships 137
Strategic Partnerships 137
Value Added Resellers 138
Joint Ventures 138
Multi-Channel Distribution 138
Channel Conflict 139
How Channel Decisions Impact Product and Service Innovation 140
Questions for Non-Marketing Managers to Ask About Place or Distribution 140
Chapter 8 Summary 141
9 Pricing: The Third ‘P’ of Tactical Marketing 145
The Impact of a Dollar (or Pound, or Yen or Rupee) 145
Common Approaches to Evaluating Price 147
Cost-Based Pricing 147
Competition-Based Pricing 149
Value-Based Pricing 149
Price and the Product Life Cycle 151
Incentive Pricing Approaches 152
Loss Leaders 152
Freemiums 153
Coupons, Groupons, Rebates, Sales and Other Short-Term Price Reductions 154
Fixed Fees or Fixed Prices 155
Retainers 155
Package Prices 156
Contingency Pricing 156
Bulk Pricing 156
Multiple Unit Pricing 156
Push Money/Prize Money Allowances 157
Other Pricing Approaches 157
Price Discrimination 157
Dynamic Pricing 158
Terms 158
Guarantees, Warrantees and Return Policies 159
Advertising and Promotional Allowances 159
Psychological Pricing 160
The Connection Between Price, Product or Service, Distribution Systems and Operations 160
The Impact of Brand on Price 161
Market Realities 161
Legal Issues 162
Questions for Non-Marketing Managers to Ask About Price 163
Chapter 9 Summary 163
10 Promotions: The Fourth ‘P’ of Tactical Marketing 167
Understanding the Two Functional Purposes of Promotions 168
Delegate, but Don’t Abdicate 170
Why Following the Leader Is Risky 171
Communicate So the Market Hears What You Say 172
Pick the Right Tool for the Purpose 173
A Guide to Common Promotional Tactics 173
Advertising 173
Direct Marketing 178
Websites 180
Social Media 183
Collateral Materials and Related Marketing Communications 187
Media Relations 189
Public Relations (Other Than Media Relations and Social Media) 191
Questions for Non-Marketing Managers to Ask About Promotions 193
Chapter 10 Summary 193
11 Evaluating Returns On Marketing Investments 197
Debunking the Measurement Myth 197
The Benefits of Measurement 200
Measuring Results in Anticipation of Funding 200
Measuring Returns During and After Execution 202
Determining the Appropriate Level of Accuracy 202
Measurement Models: Simple to Complex 203
Case Study #1: Evaluating the Potential Impact of a Website Overhaul 204
Case Study #2: Evaluating the Impact of Changes in Products, Channels and Promotions 206
Case Study #3: Increasing Precision Through Analytics 210
Risk Adjustment 212
Return on Marketing Investment 214
Questions for Non-Marketing Managers to Ask About Measurement and Returns 216
Chapter 11 Summary 216
Section 4: Managing Marketing Operations 219
12 Why Do Good Plans Fail? 221
The Tortoise Law 222
Why Companies Voluntarily Abandon Their Plans 222
Lack of Executive Commitment 223
Leadership Changes 223
Failure to Plan for Change 224
No Evidence of Progress 224
Executive Distrust 225
Why Companies Drift Away From Their Plans 225
Lack of Executive Commitment 225
Poor Accountability 226
Incremental Changes 227
Why Companies Involuntarily Abandon Their Plans 228
Inadequate Staffing 228
Failure to Anticipate Significant Changes 229
Failure to Anticipate Opportunities 230
Questions for Non-Marketing Managers to Ask About Keeping a Plan on Track 230
Chapter 12 Summary 231
13 Staffing The Marketing Department 233
Estimating Human Resources Requirements 233
Acceptance of Responsibilities 236
Assessing the Required Skills 237
Using External Resources to Address Skill Gaps 238
The Benefits of External Resources 238
How to Decide When to Use External Marketing Resources 239
Selecting a Resource 240
Overseeing External Resources 243
Questions for Non-Marketing Managers to Ask About Staffing the Marketing Department 245
Chapter 13 Summary 245
14 Managing Measurement 249
Addressing the Language Barrier 249
Agreeing on Metrics 251
Building Processes and Systems to Measure Performance 253
Don’t Forget the Investment Side of the ROI Equation 254
Remaining Focused 255
Coordinating Efforts 256
The CEO’s Role in Measurement 257
Questions for Non-Marketing Managers to Ask About Managing the Measurement of Marketing Performance 258
Chapter 14 Summary 258
15 Cultivating Systematic Listening 261
Modelling the Way: The Executive’s Role in Building the Crystal Ball Effect 261
Building a Listening Culture 263
Validating Internal Information With Third-Party Research 265
Why Market Research Reduces Risk 265
Effective Research Keeps the End in Mind 266
Identify Assumptions and Define Risks 266
Assess the Appropriate Investment 267
Start With the End 268
Key Market Research Tools and Concepts 268
Types of Research 269
Bias Risk in Research 270
Research Design 271
The Art of Interpretation in Research 271
Questions for Non-Marketing Managers to Ask About Cultivating Systematic Listening 272
Chapter 15 Summary 273
Section 5: Conclusion 275
16 Four Tests to Run Before Funding 277
The Alignment Test 277
How the Test Works 277
Case Study: The Alignment Test in Action 280
The Assignment Test 283
How the Test Works 284
Case Study: The Assignment Test in Action 285
The Risk Assessment Test 286
How the Test Works 286
Case Study: The Risk Assessment Test in Action 287
The Anticipated Returns Test 289
How the Test Works 290
Case Study: The Anticipated Returns Test in Action 291
Chapter 16 Summary 296
17 Now What? 297
Marketing Performance Evaluation: How Does Your Company Compare? 298
Section I: The Discipline of Marketing 298
Section II: Evaluating Marketing Plans 299
Section III: Managing the Marketing Function 301
Now, Take It Again 304
Share Your Answers 304
Ask Questions 304
GLOSSARY 305
APPENDIX A: REFERENCES AND RESOURCES 317
