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430:. Measurement accuracy, repeatability, reproducibility, bias, data shifts, and data drifts are only a few common issues identified in measurement, and any useful system must be evaluated from the technical point of view to assure that it addresses these criteria. It is essential that measurement error is quantified so that managers react to changes in conditions, but not changes due to measurement variation. At the very least, all measurements need to show statistical
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marketing accountability has growth as marketers must add many more investments to the marketing portfolio to adapt to changing customer preferences and compete effectively for market share. According to Forbes research, the CMO of the average Global 5000 company must now allocate resources across at least 20 primary investment types in their annual budget.
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marketing activities, and to demonstrate the financial contributions of specific marketing programs to the overall financial objectives of the firm, including brand asset value. Return on marketing investment (ROMI), customer acquisition costs, and retention rates are examples of commonly employed marketing accountability metrics.
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Marketing activity outcomes must be gathered on a continuous basis in time. While a single reading may provide some insight into the condition before marketing begins, accountability comes from understanding cause and effect. This knowledge comes from repeated examinations over time that show changes
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The measurements need to be true outcome indicators. Unlike sales where the outcome is easily quantifiable, marketing is more difficult to define: there is not a direct, fast-acting relationship between marketing activities and sales. Some marketing materials are designed to inform, others attempt to
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According to the Common
Language Marketing Dictionary, Marketing accountability refers to the use of metrics to link a firm's marketing actions to financially relevant outcomes and growth over time. This accountability allows marketing to take responsibility for the profit or loss from investments in
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Recent research by the Forbes CMO Practice and the
Marketing Accountability Standards Board shows CMO are under growing pressure to show returns on rising investments in marketing assets, new media, data, analytics and technology needed to compete for digitally enabled customers. The complexity of
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These outcome indicators, representing the condition in the marketplace, are combined with financial data to show efficiency of the marketing process. The financials are inputs: dollars spent for marketing activities. The best and most informative systems use
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Cook, Dr. William A., “An (Advertising
Research Foundation (ARF) Research Review of Integration Marketing & Communications Limited’s Market ContactAudit TM Metrics Significance Assessment Methodology”, ARF – The Research Authority, April
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in his groundbreaking book “Managing” explains the role of an effective CEO: to repeatedly evaluate performance numbers on a continuous basis. Only long term observation brings true insight of unanticipated changes and “red flags” in the data.
402:, but in marketing all too often this principle is ignored. Different communications activities are evaluated using different measurements. These methods fall short of accountability in that the activities cannot be compared directly and their
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of the programs. The outcome indicator can be called “Brand
Experience”, and only consumers can discern the resultant brand experience in the clutter of the marketplace as each message competes with others for attention.
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with expiration dates to stimulate purchases. Thus a multiplicity of channels and contacts that influence target consumers needs to be measured together in order to understand the overall effect, and the separate
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as they show contribution efficiency (Brand
Experience/$ spent) of each activity, and they may be summed in desired combinations (or campaigns). Understanding competitors costs and brand experience can lead to
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cannot be discerned. Only measurement systems that use common units – to evaluate each contact, each market, and each competitor — can result in marketing accountability.
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Jamhouri, Oscar; Krause, Hans Ulrich, “Beyond Media Plans: Brand
Experience Strategy”, (European Society of Opinion and Market Research Professionals (ESOMAR) Conference 2002.
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Jamhouri, Oscar, The Brand
Experience Handbook, Process and Toolbox for Effective Brand Experience Strategies, Version 4, Integration Marketing Communications, September 2004.
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To assure meaningful comparisons among activities, brands, markets, and points in time; the metrics must use a common scale—a “common currency”. This is quite obvious in
442:(ABC) that track costs by each marketing activity, rather than traditional cost accounting by salaries, facilities, equipment, and materials. ABC methods have the best
365:’ point of view, they need to include all marketing activities, they must be repeated over time, and they must meet statistical and technical criteria required of all
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Marketing
Accountability was the subject of a report published in 1997 by Financial Times Management Reports It investigated a widespread problem that consultants
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or so-called “error bars”. Independent organizations like the
Advertising Research Foundation evaluate the validity of commonly used measurement systems.
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and the associated activity input costs. Outcome performance indicators are called
Effectiveness Metrics; Effectiveness combined with costs is called
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are integrated within the business and management of the enterprise, not as a stand-alone functional silo. Analogous to other business functions like
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Winiarz, Marek P.E., The Method Handbook, Innovative Message for Managing, Method Marketing and Communications, MMC/SAN-06-0003-HB, February 2006.
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that is understandable to the management of the enterprise. "Accountable Marketing" is another name that can be given to this process.
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portray the product or service attractively, yet others attempt to influence purchasing behavior. Most
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Efron, Bradley; Tibshirani, Robert J., An Introduction to the Bootstrap, Chapman & Hall/CRC, 1998.
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from marketing initiatives (from brand and competition) and the evolution of consumers’ needs.
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Cost and Effect, Using Integrated Cost Systems to Drive Profitability and Performance
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include all three orientations; a brand may have glossy ads to boost attractiveness,
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Marketing accountability : improving business performance
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You can help by providing page numbers for existing citations.
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16:Metrics linking marketing actions to outcomes
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61:Learn how and when to remove this message
482:Marketing Accountability Standards Board
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426:. Together these form the science of
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159:Digital asset management
199:Post-merger integration
189:Marketing effectiveness
134:Customer lifetime value
32:This article cites its
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328:performance indicators
310:” (IMC) implies that
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104:Business intelligence
643:Marketing techniques
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214:Process optimization
209:Predictive modelling
204:Predictive analytics
184:Marketing automation
76:Marketing operations
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375:marketing campaigns
367:measurement systems
249:Business portal
343:McKinsey & Co.
224:Strategic planning
149:Database marketing
553:. 3 October 2016.
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518:978-1-85334-829-7
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492:24 October
455:References
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332:Efficiency
292:management
428:metrology
404:synergies
379:brochures
363:consumers
312:marketing
164:Flowchart
99:Budgeting
51:June 2019
444:fidelity
302:Overview
383:coupons
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