Many companies still see marketing as a cost, not an investment. According to proven business strategist Antony Young, marketing creates positive value for a business or brand by demonstrating cost versus return. Young and co-author Lucy Aitken propose a radical change in marketing philosophy to an investment-led approach with a focus on value, not cost. The book introduces investment disciplines and strategies to marketing practices and gives insight into how marketers have delivered outstanding marketing return on investment. Finally, it provides a blueprint to maximize the returns from marketing communications.
"Demystifies marketing communications and explains how it can bring tangible financial results to the bottom line." -- Journal of Economic Literature
The authors propose a new marketing model to help business owners and marketing professionals apply an investment-led approach where the focus is value, not cost. This guide introduces investment disciplines and strategies to marketing practices.
introduces investment disciplines and strategies to marketing practices.
1. A need for a new marketing model
How it used to be
The declining effectiveness of mass advertising
The changing consumer
Increased pressure on corporate profitability
Growing pains
The impact of interactivity
The implications
What this book sets out to do
2. A change in philosophy
What is Marketing ROI?
Studying the market
Why Marketing ROI is difficult to achieve
How should marketers respond ?
3. Our Marketing ROI stars
Toyota Motor Corporation: driving in top gear
P&G: a soap opera with a happy ending
O2: How a £17.7 billion brand was born
British Airways: dealing with turbulence
Impossible is nothing
4. Invest, dont spend
The ICE checklist
Decide whether you need to invest in marketing
Marketing an alternative to acquisition
The ladder of insight
Our eight investor tips to profitable marketing communications
Use these tools
5. Concentrate on outcomes, not outputs
Output obsessions
Outputs that drive the wrong marketing
Whats the difference between an outcome and an output?
Creating a Marketing ROI culture
Setting the right metrics
Useful metrics
Turning metrics into objectives
Targeting the right outcome
How to focus on outcome-led marketing
Reassuringly effective
6. Forget consumers, target customers
The three deadly sins
Profit (Marketing ROI) comes from loyal customers
Profit (Marketing ROI) = loyal customers
Customer satisfaction = customer retention
Customer equity
Segmenting by customer profitability
Customer retention helps acquisition
Consumer packaged goods
The power of empathy
Bespoke media
Use the technology to guide smart investments
7. Manage your communication investment portfolio
Your marketing communication portfolio
Embracing risk
A different approach
The integration challenge
Growth of alternative channels to advertising
Payback time
Making the right investment decisions
Touchpoints ROI Tracker
A central organizing communication idea
Determining the channel mix broadly based on ROI measures
Leveraging synergies: development
Leveraging synergies: execution
A final thought
8. Differentiate any way you can
Value versus price
How to differentiate your brand
Avoid commoditization
When not to differentiate
Editing consumer choice
9. Engagement and experience are the new 30-second ads
The magic of mavens
Invest in inspiration
Experience, not possessions
Starbucks: creating the coffee experience
Nike: Just Doing It
Hewlett-Packard: creating HyPe
Axe: mans best friend
Encouraging consumers to participate
In the flesh appearances
Making it personal
Whats in a name
Revamping a flagging brand
10. Apply a focus investing approach
The Buffett style of investing
Focus investing applied to marketing
How strategy helps focus investing
Understanding why marketing campaigns fail
New product initiatives
Making the right choices
Identifying the big bets
Making choices about communication
Betting on Buffett
11. Establish a measurement culture
Setting out the problem
Our view
Set metrics at the start
Its not failure; its learning
Metrics: moving the needle
Introducing an ROI system
Modelling
Owning econometrics
Marketing dashboards
Market testing
Data, not dinner
12. Leverage your employee capital
Investing in staff
to invest in customers
Marketing that motivates
Employees are customers too
Our Marketing ROI stars and their employees
13. Is your organization Marketing-ROI fit?
Why ROI is important
Learning from the pitch
Relationship management
The brief
Unification, not integration
How does the ad industry need to change?
Selling advertising
Building value
Equipping agencies to deliver a Marketing ROI agenda
A new breed of agencies
Summary