Improving marketing effectiveness
Leading practices in marketing accountability
With a resurgent focus on marketing effectiveness, Deloitte and The Chartered Institute of Marketing joined forces to explore how improved accountability and measurement could support business’ desires to drive growth and higher performance through customer focus and a more strategic approach to marketing investment.
Fragmentation in communication channels, growth in online media, increasing cost of capital, and an accelerating pace of change in customers and markets are just some of the reasons for business leaders’ increased focus on marketing effectiveness and returns.
Calls for increased accountability and investment justification are amplified by the recent recessional conditions and are likely to increase over coming years, as markets continue to change and the profound effects of our current economic cycle impact customer and consumer values, attitudes and behaviours over the longer term. Tough times have brought with them an increased scrutiny of how organisations make money, a new found financial literacy amongst the previously unacquainted and permanent behavioural shift in the search for value for money. Marketing is often the first budget to be cut in times of need, and with the context of the previous recession marketers need an evidence based reply to the question ‘how do we account for or justify marketing investment?’.
This important issue was identified previously in 2007 when Deloitte conducted a pan-European study into marketing effectiveness involving over 200 C-Suite respondents from large scale organisations. Entitled ‘Marketing in 3D’, its insights included that:
- 77% of respondents did not believe their employees fully appreciated the value of marketing
- Only 20% of the survey base believed their current key performance indicators were the right ones to measure the true success of marketing
In addition, a study of 50 global organisations by The Chartered Institute of Marketing in 2009, entitled ‘In Search of a Strategic Role for Marketing’, found two concurrent insights:
- 82% of Marketing leaders were dissatisfied with the role and positioning of Marketing within their organisations
- Only 5% of Marketing structural change between 2006-08 was based on feedback from measurement systems