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Changing Times Makes Marketing ROI Difficult

Nov 3, 2007
Initially getting good response for the creative tests, getting good response rates, and a good ROI with a specific campaign in mind was almost a success with marketing. There is a lot of scrutiny that is being placed on the marketing industry, and thus a lot more effort has to be taken if you want results to cut in.

Two segments are under constant pressure when it comes to getting good ROI from marketing. They are the senior marketing executives, and also the chief marketing officers. This was not how it worked earlier, but it shifted towards the officers. The team deputed under these officers is also responsible for the targets.

This shift in responsibilities could mean that certain events caused this to change. The first thing is the increase in competition, and then there is the complexity in business. Soon after this, companies need to look at the demand that customers make these days. There is also the scrutiny with regulatory.

There is also a lot of change in proliferation in channels and products, an activism with shareholders and many more. Most of the needed information is difficult, and thus accountability becomes difficult for many marketers. The entire organization will have to be in account with the marketers. Only then the execution will be realistic.

If the successes and activities of the marketers are not aligned like the above, then there will be absolutely no long-term benefits in sight. There will be a lot of challenges faced with marketing. Marketers might offer something that would be very beneficial to customers but it might affect the revenue with the company.

There is a major factor that can be changed with this. There will be the need to focus on customers more than being campaign oriented as well as product oriented with the ROI. This measurement thinking has to be this way if you are to expect results. Cultural as well as organizational challenges may have caused this effect.

To manage a better performance, managers can take a lot of steps to make the marketing department evolve with reference to ROI. There should be objectives, goals and also the right key performance indicators in mind, in the organization. The performance with management can only change if all the teams are involved in the process.

All marketing organizations need to use every team with the maximum coverage if they need to see profits. The alignment should be downstream, as long as the goals are defined along with the objectives. All executives need to keep the goals in mind before going on to the next step of execution.

Without clear goals in the organizations, proper teamwork, there could be very few results in the ROI. All the primary goals should have the right metrics, so that there will be a good profit. Metrics should also be improved, and a good performance management has to be defined by the marketing executives. You can define all the company's goals with this framework in mind. With marketing metrics it is easy to measure and control the return of investment for marketing.
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