What is Marketing Performance Management?
It is the ability to improve what marketing contributes to business performance.
What is Marketing Effectiveness?
It is the ability of marketing to improve the effectiveness of what it does.
What is Marketing ROI or ROMI?
It is a calculation of incremental revenue versus the cost to generate that incremental revenue.
CLICK HERE to watch this video on how to calculate marketing ROI with Kneebone.
Level
|
Function
|
Description
|
Marketing Performance Management:
Executive Level
|
Strategic Brand and Product Level
CMO
|
Monitors and measures performance against business outcomes and marketing objectives |
Marketing Effectiveness:
Operational Level
|
Marketing Management
VP Marketing
|
Tracks performance of core marketing strategies and processes |
Marketing ROI:
Tactical Level
|
Functions and Individuals
Marketing Managers
|
Analyzes performance at project or activity level as they relate to the first two |
Marketing is resetting expectations with the CEO/CFO and COO. That’s because “73% of CEOs Think Marketers Lack Business Credibility: They Can't Prove They Generate Business Growth”-Fournaise Marketing Group, June 2011. And, with Marketing’s growing opportunities and budgets, it is becoming a more formal component of business strategy with all of the incumbent expectations; tracking, measurement, and forecasting.
From year to year, it is never entirely clear how successful marketers will be in achieving their goals. That’s why Marketing needs a flexible and continuous Marketing Performanc Platform to chart and learn the changing nature of marketing effectiveness.
Marketing Performance Management may start with any aspect of the marketing mix and at any level of customer, product, campaign or channel. Whereas marketing effectiveness may be gauged in many different ways, with KPIs ranging from engagement to increased revenue,
Marketing Performance Management applies these KPIs with an even hand, standardizing on a calendar basis, the marketing events, customer KPIs, costs, leads, sales and conditions that combine to have a marketing effect.
There are five factors driving marketing effectiveness:
- Marketing Strategy
- Marketing Content
- Marketing Execution
- Marketing Infrastructure
- Exogenous Factors
Many of the data sources required to understand and manage these factors are available in all organizations. Many more market and competitive conditions are available.
When the Executive and Strategy leaders endorse a mandate for Marketing Performance Management they are committing to a greater context to view Marketing ROI and Marketing Effectiveness transforming marketing performance with revenue growth.