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Published in cooperation with
2006 ANA Marketing Accountability
Task Force Findings
Total Accountability: Before
and Beyond the Dashboard
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2007 All Intellectual Property Rights Reserved
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Table o Contents
Total Accountability: Beore and Beyond the Dashboard 2Introduction 22006 Marketing Accountability Purpose and Approach 3Key Findings 4
Denition and Components o a Process 7What is a process? 7
The First Step: Understanding the Target Customer 8The Voice o the Customer Using The VOC To Find The Emotional Link Between Brand And Customer 2
The Second Step: Having an Explicit Plan to Build Brand Equity 3Example o an Equity Building Imperative 5
The Third Step: Setting and Prioritizing Objectives 7The Fourth Step: Developing an Integrated Marketing Strategy 20Beyond the Dashboard 23An Analytical Framework o Who, What and How - The Key to Accountability 26Appendix 33Appendix I: 2005 ANA Marketing Accountability Task Force Catalog o Metrics 34
Innovation 35Dierentiation 37Customer Centricity 38Marketing Eciency 40Trial Generation 42Lead Generation 43
Awareness 44Advertising Copy 45Margin Enhancement 47Brand Equity 48Purchase Behavior 50Marketing Human Resources 5Public Relations 53
Appendix II - 2005 Marketing Accountability Process 55Appendix III - Integration-IMC Model 56Appendix IV - 2006 ANA/MMA Marketing Accountability Survey Results 58
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Total Accountability: Beore and Beyond the Dashboard
Everyone wants marketing to be accountable
Responding to that desire in 2005, the ANA
commissioned a task orce o 20 leading
companies rom diverse industries These
twenty companies were asked to share the
best current practices that had helped them
become more accountable and to identiy
their challenges in becoming truly accountable
marketing organizations
The 2005 ANA Marketing Accountability
Task Force report, written or the ANA by
our consultants on the project, the EMM
Group, asked some basic questions about
accountability The Task Force members
concluded that marketers need to think
about being accountable or more than a
short term revenue objective or even or
a higher marketing return on investment
Rather, marketers should be accountable orbuilding long term brand equity, the single
most valuable asset o most companies
Additionally, we discussed the need or
marketers to learn more about the target
consumer whose needs are the wellspring o
all protability
The 2005 report provided many practical
tools to acilitate accountability Specically, it
created the marketing maturity model to help
marketers understand where they stood versus
their peers in our critical areas: data, analytics
and metrics, corporate culture and process
(See page 24 o this report) Respondents to the
report helped develop a process map to guide
marketers step by step towards accountability
within even the most siloed o companies
The 2005 ANA Marketing Accountability Task
Force members identied emerging new tools,data and analytical protocols that were helping
them bring accountability to marketing Lastly,
rom the task orce participants, we assembled
a catalog o metrics to help marketers select
those that were applicable to a diverse universe
o industries (See Appendix I)
But everyone who participated in last years
task orce believed this work was but the start
o a journey not a destination That has
certainly proven to be the case! Everythingwe learned in 2006 shows marketers are
making progress across the board; yet, we
have seen continuing pain points, barriers and
rustrations How to overcome them will be the
ocus o this 2006 report
Introduction
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The purpose o the 2006 marketing
accountability study is to continue the journey
towards Total Accountability
We did this by changing our approach
slightly rom the 2005 Report Specically,
we broadened our universe o ANA member
contributors substantially beyond the specic
members o the original Task Force
We also broadened our scope to include
new sources o data One o the most
important was the third annual ANA
Marketing Accountability Survey, conducted
in conjunction with Marketing Management
Analytics (MMA) This survey added valuable
numerical data to our perspective acquired
through numerous personal interviews o
members The survey data conrmed much
o what we heard in individual interviewsand provided a clearer context In this
way, the Survey data enhanced our overall
understanding o accountability
In addition, the Task Force reached out
or more input at the 2006 ANA Marketing
Accountability orum as well as at a CMO
2006 Marketing Accountability Purpose and Approach
roundtable at the 2006 Masters o Marketing
Annual Conerence in Orlando Lastly, the
subject o accountability was raised at
numerous regional meetings which aorded
many members their rst opportunity to
comment on accountability directly to ANA
Marketing Accountability Task Force members
Lastly, on behal o the Task Force, the EMMGroup with the assistance o MMA interviewed
marketers throughout 2006 Both EMM Group
and MMA listened to the challenges and
successes ANA members experienced in their
continuing eorts to be more accountable
On behal o the Task Force, we would like to
thank all o those ANA members who took the
time to share their experiences We would
also like to extend a special thanks to the EMM
Group and to Gordon Wade, who once againguided the ANA Marketing Accountability
Task Force with his tireless energy, wit and
dedication and passion about this important
topic
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A key challenge conrmed by the 2006 ANA/
MMA Marketing Accountability Survey is that
marketing accountability is still too oten an
activity trapped within the silo o the marketing
unction itsel More than 60% o companies
in the study reported no cross unctional
involvement whatsoever in developing
marketing accountability Where this occurs,
everyone reports continuing rustration ingaining credibility rom the balance o the
corporate unctions who are excluded (or
exclude themselves) rom participation in
validating marketings accountability
Conversely, the most encouraging sign is the
slow but perceptible involvement o multiple
unctions in a marketing accountability
process within companies Particularly notable
are the involvement o the procurement and
especially the nance unctions in manycompanies Looking behind the numbers
rom the 2006 ANA/MMA survey, we learned
that over 35% o companies had some kind
o cross unctional marketing accountability
team (in most cases including nance) In
responding to another question, nearly 30%
claimed ull cooperation between marketing
and nance in establishing return on
marketing investment metrics
One marketer serving on a team with aFinance member observed that the two
disciplines were teaching one another their
respective languages At one o the 2006
ANA orums, a procurement participant on
a company accountability team said we are
Key Findings
inventing a common language so we can
educate management In several cases,
nance and procurement participants pointed
out that because they came rom unctions
that are measurement and metrics oriented,
it was easy or them to bring that unctionally
required approach to a discussion o marketing
accountability
At this writing, we sense that marketing and
nance, two unctions that have been at
swords point or years, have realized that their
individual success depends upon collaboration
Where this is happening, and it is happening at
many, many companies, the real winners are
the shareholders
The involvement o rigorous metrics oriented
unctions is proving particularly valuable
in business to business (B2B) companieswhere capturing meaningul data or having
available data be accepted as meaningul
by management has historically proven
to be a challenge But at B2B companies
such as Intel and IBM, support unctions on
accountability teams have been particularly
helpul in one case, assisting marketers in
gaining adoption o a brand equity measure as
a valid accountability metric, and in another,
developing metrics or tying marketing to
specic lead generation activities and the salesresulting rom those leads
Unortunately, all the news isnt positive Data
availability or condence in available data
continues to be a real challenge In the 2006
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ANA/MMA Marketing Accountability survey,ewer than 5% o respondents were highly
satised with the accuracy o syndicated data,
the timely availability o data or the alignment
between disparate data sources
Even one o the most visible successes o
the accountability initiative, the development
o the Marketing dashboard, has some
discouraging aspects because some seem to
eel that the very existence o a dashboard
makes marketing accountable This is not thecase as various research data conrm
We need to be clear about this The creation
o dashboards with the right metrics tied to a
causal model is a tremendous breakthrough
Nearly 6% o companies report having a
dashboard and another 9% are in the midst
o roll out Numerous companies report
having specic marketing related metrics
on the corporate dashboard reviewed by top
management and in some cases the Boardo Directors But in many cases, the ocus
on getting numbers on the screen has not
materially helped address the real challenge
that occurs long beore and continues long
ater the nano-second when a new number
is displayed within a color graph The 2006
ANA/MMA Marketing Accountability survey
oers some sobering data in this regard:
Only 0% o respondents elt very satised
that they could change establishedstrategies and programs i ROI measures
showed them to be ineective
Only 4% o respondents elt very satised
that they could act quickly in response to
ROI data to improve results quickly
Only 3% elt very satised they couldimprove the quality o the companys
planning process
One ANA member captured the problem
elegantly At one o the Forums she said, Weve
got to use metrics and the dashboard or more
than measurement Weve got to use them or
management
The real challenge in the period beore the
dashboard gets populated is the developmento a marketing process that can repeatedly
produce excellent marketing results in the
same way a tightly managed manuacturing
process produces excellent quality products
time ater time An excellent dashboard
number this quarter is little more than a
pleasant delusion i no process exists to
produce an even better number in this quarter
next year Yet, ew i any companies have
a bullet proo marketing process All have
a marketing planning calendar, many havemandated activities, some even have required
inputs to specied ormats, but none o these
is a process For too many marketers, process
remains an unamiliar and potentially a
threatening concept
I ew companies have a process to develop a
better dashboard number next quarter, even
ewer have a process or analytical protocol or
discovering why a given dashboard number
ailed to measure up to expectations Theailure o marketers to apply some sort o
causal model to explain ailures in perormance
is a phenomenon which our interviews suggest
is pervasive Thus, in this white paper we will
provide some approaches marketers can take
to overcome this
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With these ndings clearly in mind, weconcluded that what marketing needs
is not just a pretty dashboard but Total
Accountability dened as: a process or
planning a better result and a protocol or
analyzing what went wrong when the planning
ails to deliver up to expectations
And so, rather than ocus on the dashboard
in this paper, we shall ocus on the process
needs beore the dashboard and the analytical
needs beyond the dashboard
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Many marketers believe they have a process
but it is important to understand what a real
process is A process is NOT a schedule A
process is NOT a ew required templates and
it certainly is NOT merely a series o internal
workshops
A process is a series o steps arranged in a
specied order with required inputs, outputsand metrics designed to produce a desired
repeatable result Grandmas recipe or a
chocolate cake is a process It has inputs
(ingredients) mixed together in a mandated
order (steps) with specied activities and
metrics (stir or about 3 minutes until it
thickens) to produce an intermediate output
(the batter) to which you apply the nal step
(bake or 30 minutes at 350 degrees) with
the much anticipated nal result being an
absolutely delicious cake time ater time(Please see the appendix or an example o the
marketing accountability process presented in
last years marketing accountability report)
The marketing process is somewhat more
complex and demanding than Grandmas
recipe This is partly because marketers
have competitors who are trying to thwart
a successul outcome and also because
marketers need to produce not one result but
three
Specically, marketers need to:
make this years mandated contribution to
corporate prot
build brand equity while achieving the prot
goal and
learn more about the target consumer
become more insightul
I true accountability comprises delivering
these three results, then one must ask,
What is marketings equivalent to Grandmas
recipe? What are the identiable process steps
beore the dashboard? We asked marketers
about those steps which they associated with
generating repeatable excellent results They
identied our steps which occur annually or
iteratively as marketers plan activities which
drive the dashboard numbers:
Understanding the target customer
Having an explicit plan to build brand equity
Setting and prioritizing objectives
Creating an integrated marketing strategy
These are not the only steps comprising a
marketing process, but these are the steps
where most marketers are sadly decient
These are the steps we want to address in this
paper
2
3
4
What is a process?
Denition and Components o a Process
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The First Step: Understanding the Target Customer
The marketing process begins with the
consumer/customer It is ashionable today or
executives to talk about becoming customer
ocused This raises an interesting question
Where has the company been ocused beore
i not on the customer?
The late Peter Drucker, as usual, got it
right The purpose o business is to makea customer The only way that can occur is
to understand the customer and ocus on
meeting that customers needs including the
oten elusive emotional needs
I your company is ailing to build eective
plans or i those plans are ailing to deliver
against expectations, the rst place to look is
back at your understanding o the customer
The 2006 ANA Marketing Accountability TaskForce members told us that understanding the
customer quite oten requires understanding
segmentation because segmentation enables
the development o a sharper ocus on
customer needs
Virtually all respondents segment their markets
in one o three ways:
Demographically- age , household income,
education, amily size
Attitudinally/psycho graphically- liestyle,
belies, sel perceptions
Behaviorally- purchase habits, hobbies,
viewing habits, shopping locale
Philip Kotler mentions ve criteria or an
eective segmentation:
Measurable: One must be able to
determine the values o the variables
used or segmentation This is especially
important or demographic and geographic
variables
Relevant: The size and prot potential o a
market segment have to be large enough to
justiy separate marketing activities or this
segment
Accessible: The segment has to be
accessible or the organization in terms o
distribution and communication channels
Distinguishable: The market segments
have to be suciently diverse to respond
dierently to dierent marketing mixes so
that the brand can draw advantage rom
that
Durable: The segments should be relatively
stable over time to minimize costs o
requent changes
Merely identiying the segment you are
targeting is not sucient to attain total
accountability You must understand the
worth o the customer - that is the dollar
value o product or services which thatconsumer/customer buys annually or over a
lietime o purchases In our 2005 Marketing
Accountability Task Force white paper we
talked about this metric as lietime customer
value (LCV) This is not to suggest that
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one should always target customers o thehighest annual worth or lietime value On
the contrary, huge ortunes have been made
by targeting consumers o modest or average
worth (eg Dollar General and Wal*Mart)
Regardless, you must know the worth o the
customer to market responsibly
I you do not know the worth o the customer,
you cannot eectively develop an economically
rational trial/ conversion marketing model (ie
how many marketing dollars can I protablyspend to attract or convert this customer?)
Trial/ conversion models vary dramatically
rom segment to segment, rom industry
to industry One thing is certain; you cant
build an accountability model i you dont
know the worth o the target customer The
2006 ANA/MMA Marketing Accountability
Survey revealed a startling act Only 4%
o companies responding indicated that
understanding the value o the customer
was important to the senior executiveso the company One might suggest that
i the C-suite wants marketing to be more
accountable they should encourage marketing
to understand customer value
For many industries, understanding the wortho the customer means understanding the
lietime value o a customer, the total value o
goods and services a customer may purchase
across all the need states your company may
oer to meet or that customers multiple
needs In categories such as consumer
nancial services, the combined value o the
prot available rom credit cards, home loans,
insurance and the customers investment
portolio can be a remarkably large amount It
is that tantalizing sum total which has driventhe continuing consolidating acquisitions
among nancial services rms to create the
heralded nancial services supermarket
Some o the more sophisticated marketers
rom the 2006 ANA Marketing Accountability
Task Force told us they combine the concepts
o segmentation, customer worth and market
penetration to calculate matrices o prot
pools which identiy those market segments
where the company has already attained sucha high share that the remaining unrealized
prot pool is small Total accountability means
understanding which segments oer the
greatest unrealized prot potential
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In the table below, the segments oer widely varying sizes, rates o consumption and total availablegross margin translating into signicantly dierent total segment margin Once the company adjusts
or its share o total segment margin, Segments #3 and #5 have the largest available prot pools or
the company
Prot Pool Schematic example
Customer segments 1 2 3 4 5 6
# customers 00 K 50K 200K 50K 200K 200K
$ consumption/capita $00 $75 $25 $200 $250 $250
Total Sales ($Millions) $0 $25 $250 $300 $500 $250
Proft Margin % 40% 30% 50% 50% 40% 30%
Segment margin ($Ms) $40 $375 $25 $50 $200 $75
Company Market share 5% 20% 20% 60% 30% 30%
Available proft pool ($Ms) $38 $30 $00 $60 $40 $225
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The Voice o the Customer
One clear indicator o how well a marketing
department understands its target customer is
the existence o a broadly shared Voice o the
Consumer/Customer The VOC concept is not
new having been brought to the US as part o
the Japanese inspired Total Quality movement
Unortunately, many marketing organizations
dont take the time to develop a robust VOC
Many companies simply summarize a ewdemographic acts and label this eort a Voice
o the Customer The accountable organization
assembles a VOC ollowing a who, what, when,
where and why taxonomy Then they seek to
understand the target customer in exceptional
depth Some even create a touch point map
to identiy where the customer touches the
companys products and services, where
company personnel touch the customer and
what the nature o the contact is
The totally accountable company shares its
VOC with all critical internal unctional groups
or the purpose o aligning them around an
understanding o the target customer The
best orum or attaining alignment is a tightly
scripted multi unctional meeting in which each
unction is asked to respond to our questions
about each o the key areas o the VOC:
Is this act/ conclusion about the customer
correct rom your unctional perspective?
Is it a signicant issue that you must
address?
What action should be taken based on this
aspect o the VOC?
What does this aspect suggest that you
dont know or need to know about the
target customer?
A multi-unctional team meeting around the
VOC can lead to productive actions across the
entire demand creation value stream It is also
a key contributor to the creation o a learning
plan which all totally accountable companies
should have
One o the primary outputs o a VOC or a touch
point map exercise is the identication o the
moment o truth or that aperture moment
when the product or service is most keenlyexperienced by the customer The accountable
marketer should be constantly searching or
that nano-second when the customer grants
permission to sell him something or tell
him something about the company and its
products A learning o this nature can drive
the development o a distinctive and eective
integrated marketing plan
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Using The VOC To Find The Emotional Link Between Brand And Customer
One o the major attributes distinguishing the
totally accountable company is its intense ocus
on understanding the emotional links between
the customers and their usage experience
with the companys product or service Some
companies acilitate understanding o that link by
creating a Voice o the Customer taxonomy which
includes concepts such as an ethnographic
depiction o a day in the lie o the consumer/customer These VOC taxonomy nodes exist to
orce researchers and marketers to understand
the context in which the product or service is
experienced Other concepts in the VOC such
as customer hopes and ears lit it above a
desiccated recital o perormance attributes into
the domain o emotional engagement where
buyer and brand bond in the inner sanctum o
the customer psyche
At the deepest level, this search or customerunderstanding is seeking an insight, one o
those rare eureka! shouting, orehead slapping
moments when marketers are handed the
combination to the customers saety deposit box
and an invitation to take what you can carry out
o the bank Marketers spend lots o time talking
about insights much as 9th century explorers
spoke about nding the source o the Nile Oten
marketers will reer to the dozens o Insights
they have about their brand or product category
when what they really have are not insights at all
but merely a series o nice to know acts or a
conclusion more useul to media planners
A true insight is a proound understanding o
customer behavior which can create competitive
advantage Its when Gillette realized thatwomen eel that body hair is uneminine and that
removing that hair can reveal the (very eminine)
goddess within An insight is Lipitors realization
that active, t people do not comprehend they
can have dangerously high cholesterol which
they need to have checked and treated It is
Budweisers intuition that beer is more about
male bonding than about taste And, Michelins
understanding that the choice o a tire is a way
o honoring the terminal value o protecting the
saety o ones children
The totally accountable marketer can always
explain how each piece o communication with
the target customer is connected to the critical
(and oten emotional) insight about the customer
The insight becomes the silver thread knitting
together all consumer / customer interaction
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The Second Step: Having an Explicit Plan to Build Brand Equity
Marketers in the totally accountable company
have three responsibilities:
Delivering the volume and prot numbers
in the annual budget
Learning more about the target customer
Building brand equity
The latter responsibility is important or two
reasons Brand equity is money in the bank
A review o the total market place value
(capitalization) o any publicly held company
will reveal that most o the value o the
company is traceable to brand equity or the
belie that the companys hold on the minds,
hearts and pocketbooks o its customers will
continue into the uture
A host o studies have been conducteddemonstrating the correlation between
brand equity and the marketplace value o
the company These studies document how
brand value contributes to various nancial
actors such as the ability to sustain higher
margins, lower the cost o introducing new
products, make cash fows more predictable
etc One study, by the economic consultants
Stern Stewart, is particularly noteworthy They
correlated market perormance, as measured
by their Economic Value Added (EVA) concept,with brand equity undamentals, as measured
by Y&Rs Brand Asset Valuator (BAV) brand
equity measurement tool This study which
covered numerous companies and industry
types demonstrated that companies with
strong Brand Equity measures in the areas o
dierentiation and relevance dramatically
outperormed those with weaker measures in
these areas, as measured by changes in EVA
The second reason totally accountable
marketers should ocus on building brand
equity is this: our work with the 2006ANA Marketing Accountability Task Force
demonstrated that in most companies no
one else explicitly owns brand equity Unless
the marketing leadership steps orward to
claim this extraordinarily important asset o
the company, one o the critical enablers o
corporate growth will languish or worse still be
dissipated by a series o harmul short term
actions
Despite the critical importance o buildingbrand equity, data suggests that it is being
neglected by numerous companies The 2006
ANA/MMA marketing accountability survey
helps explain why It revealed that 40 % o
respondent companies dont track changes
in the nancial value o brand equity and only
5% were very satised in their understanding
o how marketing eects the marketplace
value o brand equity Furthermore, interviews
conducted with ANA members indicate that
ew companies have any explicit process orplan or building brand equity
This is unacceptable Few would tolerate any
other major corporate unctions not having
a process or plan or delivering repeated
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excellence in the area or which it is primarilyresponsible Imagine a ood manuacturer or a
restaurant without a process to guarantee ood
saety across the product delivery stream Yet,
we see ew marketers who have a documented
repeatable process or building brand equity
Those ew who do have processes and plans
create what some call a Long range equity
action plan (LEAP) These are documents
which extend across a longer time horizon
(three to ve years) and contain specicstrategic objectives (some times called
imperatives) the purpose o which is to drive
specic customer attitudinal or behavioral
metrics behind which all the unctions o
the company are aligned Some o these
imperatives may be under the direct control
o the marketing unction such as advertising
positioning or targeting a particular group
o consumers who may have weak attitudes
towards the brand
In many cases, however, the imperativeidentied or improvement may NOT be under
the direct control o the marketing unction
These imperatives may involve a product
or service improvement internally owned by
manuacturing, by store operations, by R&D,
by packaging, by sales or even by nance In
these instances, marketings power lies in its
understanding o the customer and its ability to
link the specied non-marketing improvement
with an improvement in customer attitudes that
drives one o the critical contributors to brandequity enhancement
The point is this: until companies recognize
that they need a long term plan to improve
brand equity in the same way that companies
have long term plans or acilities expansion
or product cost improvement, the company
cannot be and will not be totally accountable
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Detailed below is a ctitious example
o an equity building imperative rom
pharmaceuticals, specically rom the
rheumatoid arthritis disease state In this
example, the marketer uses a contribution
to preerence actor analysis protocol to
measure its equity We do not advocate any
specic research protocol or becoming totally
accountable only that marketers measureequity with a protocol utilizing analytics which
acilitate understanding brand equity based on
emotional and unctional attributes
In this approach, customers (physicians)
are asked why they preer Brand A to
brand B Their responses are grouped into
related actors and mathematical analysis
is perormed to ascertain which actors
drive preerence and by how much This
type o protocol is used in dozens o diverseverticals Its utility is denitely not limited to
pharmaceuticals
In the ollowing example, Brand A the pioneer
in this treatment category is preerred over
a new drug Brand B which has only been
available or about 6 months Despite the
recent introduction o Brand B, the overall
preerence or Brand A is relatively small (65
vs 58) and brand B has certain advantages
primarily driven by its ease o administration
The key to identiying the imperative that could
build Brand As equity lay in the dynamics
behind the equity scores in two important
respects The rst was the dierent delivery
mode o the two drugs Brand A is delivered by
inusion which requires a visit to a hospital or
physicians oce every 6 to 8 weeks and a two
hour stay while the drug is administered Brand
B, the newer medicine, is sel injected at home
by the patient every 2 weeks and takes less
than ve minutes to administer
Example o an Equity Building Imperative
Rheumatoid Arthritis Brand Equity Score Card
Country: United States
Source: US RA Brand Equity Surveys: (Q06)
Brand Positioning or Brand A:
For RA suerers, only Brand A oersunsurpassed pain reduction while addressingpatient concerns over saety o administration.
Contribution to
Preerence
All: Q1 2006
Desired Brand Equity AttributesBrand
ObjectiveBrand A Brand B
Overall >5% 65 58
Pain Reduction/Efcacy > 5% 34 28
works or everyone 20 23
gives long-lasting relie
works rapidly ater treatment 3 -
relieves pain in all joints - 4
Ease o Use Parity 24 43
provided as outpatient 8 -
sel administered - 40
encourages compliance 2 3
requires training/preparation 4 -
Saety in Use >10% 25 12
side eects 3 2
blood pressure/ainting concerns
20 0
bleeding 2 -
Availability/Payment Issues Parity 6 10
Eect on Physician/
Patient Relationship>5 10 7
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Brand As marketing personnel had doneextensive mining o the brand equity data and
knew that among those doctors who valued
brand A or its high patient compliance and or
saety in use, brand As share o prescriptions
was signicantly higher In act they could
predict with mathematical accuracy the
increase in market share and sales volume
associated with an increase in their ownership
o these two actors in the mind o doctors
The answer to changing attitudes and alteringbehavior lay in understanding the
Moment o Truth when the prescription
decision was made and in understanding
the rational and emotional motivations o
the patients and physicians The patients
were generally older oten with multiple
co-morbidities ranging rom osteoporosis
to serious digestive maladies They were
generally ignorant o their treatment
alternatives and were eager to receive and
willing to accept advice rom their physiciansFor their parts, physicians would in most cases
present treatment options to the patient and
guide that patient towards a decision based
on their own experience and evaluation o the
patient
The marketers had learned two other
critical pieces o data hinted at in the Brand
equity data Physicians and patients were
convinced the Brand A was saer because
it was administered in a medical setting byproessionals Second, the doctors were
convinced that compliance (adherence to a
rigorous schedule o dosage) would be better
with Brand A because patients would not
inject themselves regularly, and in some casesnot at all This non compliance would ultimately
cause the patient to suer and elicit rustration
or the physician as the patients health
deteriorated
Mathematical analysis o Brand Equity attitudes
indicated that emphasizing the saety o the
medically administered Brand A would drive
an overall avorable attitude (equity) among
physicians, especially rheumatologists who
were the physician segment with the highestannual prescribing value As a result, the
marketers would emphasize that physicians
should re-assure patients (eg I have never
had a serious emergency rom this drug) at
the moment when the patient was choosing
between Brand A (administered in a medically
supervised setting) and Brand B (sel injected
at home by an already ragile patient)
Understanding the structure o the brand
equity Contribution to Preerence model gavethe marketers condence that increasing the
score on these two actors would increase
overall preerence
Accountable marketers can use their
knowledge o the target customer to identiy
attitudes that drive enhancements in brand
equity They can build these attitudinal targets
into brand equity improvement plans and
use them to create value propositions or
advertising development In this way, a longterm equity action plan gets linked to this
years marketing plan and todays advertising
execution
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The Third Step: Setting and Prioritizing Objectives
The annual marketing plan is best
understood as a series o objectives which
when added together comprise the annual
goal Accountability implies two things:
measurement and an objective The totally
accountable marketer should try to associate
every expenditure with a specic objective,
and measure whether or not the expenditure
attained the objective
Interviews with ANA members indicate that
some marketers are striving to do this The
characteristics o those marketers are as
ollows:
Aggressive collaboration between the
nance and marketing unctions
Using net present value as a metric to
prioritize various marketing initiativesPlanning vertically by initiative rather
than horizontally by channel or type o
expenditure
Lets expand upon these characteristics
First, the aggressive collaboration between
nance and marketing is critical O all the
developments caused by the demand or
marketing accountability, none has been more
necessary and more surprisingly successul
than the growing, productive collaborationbetween the marketing and nance unctions
The two unctions have always worked
together, but their working relationship
has, in some circumstances, tended to be
more that o wayward driver and trac cop or
ailing student and demanding teacher Some
marketers may have viewed their nance
colleagues as adversaries bent on driving
down costs and expenditures by constantly
looking or opportunities to reduce marketing
budgets For their part, nance may have
seen marketing as the one unction with no
discipline, no accountability, and scant proothat the expenditure was productive or even
necessary
The twin and sometimes competing objectives
o sales growth and ecient expenditure o
unds has pushed marketers and nance
together Marketing is a logical driver o sales
growth and nance is a logical arbiter o
expenditure eciency In many companies,
the two unctions have come to appreciate that
their ortunes are interdependent Each hasrecognized that one might be able to help the
other achieve common objectives and so the
unction o Marketing Finance has become
less o a punitive score keeping unction
ocused on cost control and more o a resource
that could help marketers understand the
implications o certain expenditure choices
In many companies, the nance unction is
helping marketing develop nancial models
rom which marketers can begin understandingthe implications o expenditures beore
they commit dollars These simple models
oten start with concepts such as reach and
requency o a marketing initiative They can be
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applied to expenditure options as diverse asredesigning sales orce call patterns to internet
campaigns They ask basic questions such
as: How many customers will it reach? How
many times? What is a reasonable assumption
regarding trial and conversion per 000
customers reached? Etc
From simple models such as these, which
almost every company can develop without
exotic math, the nance unction can develop
calculations o the net present value o amarketing initiative This approach allows
marketing management to look across the
panorama o multiple marketing initiatives
on one brand or a portolio o brands and
prioritize expenditures based on the net
present value o N initiatives Net present
value or NPV has certain advantages versus
ROI in that it is an eectiveness measure with
eciency components built in whereas ROI
is strictly an eciency measure Companies
such as Procter & Gamble which are ocusedon growth rather than raw eciency tend to
avor the use o NPV over ROI
Some cynics oten point out that the best
way to increase marketing ROI is to spend
no money and simply milk the ranchise,
withdrawing priceless reputation rom the
brands equity bank until theres nothing let
Proponents o using NPV point out that it
ocuses on growth and on cash while having
the added value o orcing marketers to ocusvaluable human capital (marketers time) on
projects which generate the most cash longterm
The use o NPV in the planning phase o the
marketing demand creation process has the
added advantage o creating a target and a
baseline or evaluating the eort This in turn
encourages (some would say demands) ater
action analysis and thereby starts a virtuous
circle o plan, do, analyze, improve, and then
plan again
This brings us to the last characteristic
o the objectives setting area and that is
planning vertically by initiative as opposed
to horizontally by channel or expenditure line
item (television, direct mail, internet, etc)
This is an extremely important concept or
many reasons, but one o the most important
is that it aligns target customer, and brand
equity enhancement with the expenditure
o marketing unds Planning vertically also
means planning by initiative rst then planningby channel (network television, direct mail,
creating a web site, developing a new product
sales drive, etc) Planning vertically requires
the marketer to ask a simple question: What
specically am I trying to accomplish with this
eort and what is the best way to accomplish
it In other words, it starts with an objective
tied to an initiative or project instead o starting
with the commitment o dollars to a marketing
channel with no equity building or sales
building metrics
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The schematic table below suggests how planning vertically, using NPV can help make marketingmore accountable Each initiative is clearly identied Each has a specic target audience, specic
eort assigned to it and specic NPV estimated by the marketing/nance team
In the chart above,the term Equity actor
target reers to the desired or estimated eect
that the dollars expended behind the initiative
will have on a specied component o the
brands attitude among the target audience ie
this eort will have asignicant (+++) positive
impact on actor A
The NPV (net present value) estimate is a
nancial estimate o the current value o theanticipated prot stream generated by the
expenditure among the target audience or
the initiative The NPV concept calculates
cash generated over time giving more value to
that cash generated quickly and less to that
generated two and three years out Conversely,
the net present value approach subtracts
the cost o the eort rom the prot stream
and does so placing a higher value on dollars
expended soon than those spent later All
uture cash whether incoming or outgoing is
discounted by a common actor agreed to
by the companys nance department NPV
is primarily an eectiveness measure with an
eciency component built in For example,
two initiatives could have an identical ROI but
vastly dierent NPVs because one projecteects millions o consumers and generates
lots o cash while the second initiative is small
and eects only a ew thousand customers,
perhaps in a limited geographic area Both are
equally ecient (have the same ROI) but the
larger initaive is much more eective (has a
higher NPV)
Initiative
(Target customer)
Initiative #1
(Customer
Group A)
Initiative #2
(Customer
Group B)
Initiative #3
(New
customers)
Initiative #4
(Retail Buyers)
Initiative #5
(In-store
Personnel)
Expenditure Type ( $ Mil)
Spot TV ,200
Direct mail 250
POS material 80
Web site 00
Trade show 250
Direct Mailed pricereduction oer
750
Training programand sales incentive
300
Production cost 50 50 50 30 30
Total cost 350 480 900 280 330
Equity actor target (eect) Factor A (+++) Factor B (++) Factor C(+) N/A N/A
NPV 424 300 250 88 50
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The Fourth Step: Developing an Integrated Marketing Strategy
Dramatic changes in the way customers seek
and process inormation have undermined the
traditional methods o communicating with
customers and persuading them Marketing
practitioners in all verticals agree that the old
marketing model is dead
Developing a new marketing model is a daunting
challenge and that has been complicated bythe explosion in marketing choices spawned
by digital technology As i the sheer number o
choices were not enough, recent studies strongly
suggest that the same customer varies her
choice o inormation channels depending upon
the product or service category For example, a
customer who depends primarily upon websites
or detailed inormation about automobiles and
pharmaceuticals may depend heavily upon
magazine advertising or ashion and cosmetic
inormation Thereore, in a rapidly changingtechnological and cultural environment, every
vertical and every initiative requires resh
thinking It is marketing as digital kaleidoscope,
ever shiting, ever changing 24/7
The marketing industry has begun rallying
around the concept o integrated marketing
strategies (the simultaneous use o multiple
mutually re-enorcing channels and activities
behind one marketing initiative) as the answer
to the decline o the old media, the riseo new media and the hectic time starved
decision cycles o todays customer However,
our interviews indicate that only a ew in the
marketing community have devised a rational
dependable process to help them develop more
sophisticated multiple component integrated
marketing plans
One thing is certain, in a marketing situation
where choice and change are the rule not the
exception; marketers must have a process to
bring order rom chaos
The totally accountable marketer starts
developing an integrated strategy by asking two
undamental questions:
Who is my target?
What is my objective?
The answers to these two questions ocus
thinking and most importantly narrow the choices
or the integrated campaign
For example, i the target is non users and the
objective is new trial, the appropriate choices or
the integrated campaign are quite dierent rom
those wherein the target is a loyal user or whom
the objective is increasing product usage or
repeat purchase
The next questions driving integrated campaign
development are:
What are current behaviors o the target
customer?
What are the current attitudes o the
target customer?
2
2
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All marketing is about changing or reinorcingattitudes, and then changing or reinorcing
behaviors Until one understands the current
attitudes and behaviors o the target customer,
it is dicult to select a campaign component
which can change these behaviors
These questions drive the marketer back
to the Voice o the Customer which should
capture current attitudes and behaviors Some
o the unconventional nodes in the VOC (ie
questions such as What are the customershopes and ears? and What is the day in
the lie o the Customer? can be surprisingly
helpul in understanding attitudes and
behaviors)
Gaining internal alignment across multiple
unctions about current attitudes and
behaviors can sometimes be a daunting task
because dierent unctions (R&D, market
research, sales, store operations, the help
desk, etc) oten have dramatically dierentnotions about these undamental issues
Thats why drawing upon a multiunctional
group to validate the VOC is imperative
Thats why gaining multi-unctional input on
integrated marketing campaign development
is highly desirable
Once the totally accountable marketer
understands current attitudes and behaviors,
he can ask What are the desired attitudes and
behaviors? What is it I want the customer tothink or eel? What is it I want the customer/
buyer/ store personnel, order clerk to do?
Moving through this cadence o questions
regarding current and desired attitudes,
current and desired behaviors may seem
mechanical and obvious but the accountablemarketer realizes it is part o sorting though
a complex maze o marketing choices The
answers to the questions help to narrow the
range o choices In act, some reer to the
process as short listing media or promotional
alternatives
Beore proceeding to choose the desired
combination o marketing alternatives, however,
a ew other questions should be asked: What
are the barriers to achieving the desiredbehavior? Are these barriers emotional, non-
rational barriers? Are they rational barriers?
(Eg the biggest barrier to trial is that my
product isnt in distribution where the target
consumer shops) The answer to these
questions can play a critical role in urther
narrowing the appropriate choices or an
integrated campaign
A useul guide in that narrowing process is
yet another question: What is the specicmarketing task I am asking this campaign to
perorm? Is it to get the customer to include my
brand among a consideration set or a vacation
choice? Is it to drive a patient to a doctor or
a specic medical procedure? Or i I am a
marketing a chemical to an manuacturer in a
B2B environment, is it persuading an internal
product developer at the customer to speciy
my molecule or a new product ormulation?
At this point the marketer is ready to returnto the VOC where the company should have
captured historical responses to the how
question (ie How do customers respond to
marketing expenditures?) In this sector o the
VOC, various quantitative and qualitative data
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regarding the eciency and eectiveness ovarious channel alternatives are captured
Over the past decade and especially over the
past ve years, enormous progress has been
made in understanding how various marketing
alternatives engage with customers to convey
a message or sell product
In some verticals such as consumer packaged
goods in which time series purchase data is
available, market mix modeling has yielded
sophisticated response curves mappingsales response to the marginal expenditure
o marketing dollars in a dazzling array
o combinations At its highest stage o
development, this approach enables marketers
to de-compose expenditures by channel and
then create optimization scenarios combining
expenditure options in an almost innite
number o channel/dollar combinations
Despite the promise o this extraordinary
capability, only 7 % o respondents in the
2006 ANA/MMA Marketing Accountabilitysurvey claimed to be very satised with their
ability to understand the sales impact o every
element o the marketing mix Only 6% were
very satised with their ability to estimate the
eect o alternate marketing plans
Everyone amiliar with this capability
recognizes its primary weakness It is
generated by analyzing historical data and
thereore cannot accurately predict precisely
how the same combination o expenditureswill perorm under a uture scenario where
the competitive situation will oten dier rom
the situation under which the response curves
were developed That having been said, thecapability to assemble multiple scenarios with
the help o experienced marketing oversight
is one o the two or three greatest advances
in the SCIENCE o marketing in the past 50
years Any vertical which has the time series
data to develop these multi-channel integrated
marketing optimization scenarios and is not
spending the money to understand their
power is almost assuredly not behaving in an
accountable manner
Unortunately, many verticals lack reliable time
series data to develop these scenarios but over
the last several years yet another new analytical
weapon has been developed to enhance the
creation o integrated campaigns This weapon
is oten called engagement measurement
This new measurement alternative like all
measurement alternatives has its pluses and
minuses This approach has two advantages
o remarkable value in building an integrated
marketing campaign First, is its capability toaddress virtually all marketing contact points
(channel options) in virtually all verticals in
virtually all countries at a relatively modest cost
Second, is its capability to rank order these
channels by their ability to engage dened
customers and infuence them to buy
This enables marketers to assemble multi
contact point integrated campaigns with
unprecedented levels o condence We
recommend that marketers test and experimentwith one or more o these new engagement
research methodologies
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Over the past several years thanks to work in
academia, at research suppliers, in marketing
departments at companies, in the consulting
community and in organizations such as The
Marketing Science Institute, the Advertising
Research Foundation and the ANA, marketing
measurement and marketing accountability has
dramatically improved The clearest testimony
is the growth o various marketing measuresthat now appear on corporate dashboards in
literally hundreds o companies
The metrics maturity model developed in
the 2005 ANA Marketing Accountability
Task Force report gave companies a useul
guide to assessing where they stood on the
maturity curve (See below and Appendix
II) Its identication o the our critical
components o marketing accountability (data,
metrics and analytics, process and culture)
helped companies identiy a path towardsimprovement
LeadingEstablishedPracticingAware
Robust multi-functionalprocess integrated intoplanning
Metrics drive end-to-end marketing process
Recognized high levelownership
Stable , accepted ,mature metrics
Linked to planning
An appointed team Ad hoc process Annual review and
modification
Pockets of projects No tie to annual process
ProcessEmbedment
Woven into everyproject & plan
Understood, shared &lived
Seen as desiredcapability
Sophisticateddashboards encouragesharing
Metrics broadlyunderstood
Professional metricsleadership
A management mandate a multi-functional team
accepts responsibility Masses of measures
reported upward
Metrics a responsibilityof finance
Competing metrics byBU
Culture
Predictive & integrated Multiple tools, real-time
response Continuous
optimization capability
Some predictivesuccess factorsidentified
Stable techniques Metrics tied to strategy
Limited mix modeling Oriented towards
specific campaigns orexpenditures
No integration
Accounting-oriented Backward looking Inputs vs. outputs No framework Primitive analytics
Analytics &Metrics
Integrated Dataplatform acrosscustomers &expenditure types
Capable of rapid crossfunctional analysis
Broad spectrum timeseries data acrossgeographies, customers& functions
Some integration
Available in limited,important areas
Stable & consistent overtime
No integrated platform
Limited by type andfunction
Unreliable time series inchoate
Data
Metrics Maturity Model
Source: Model adapted from DoD Metrics Review, May 04
Most organizations are between Aware & Practicing
Beyond the Dashboard
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From interviews with ANA marketingpractitioners, it became clear that
improvements have been made in the areas
o data, especially the availability o the new
engagement data developed by various
vendors, and organizational collaboration o
the marketing and nance unctions
Where marketers are still alling short
however is using the dashboard as a catalyst
to understanding necessary steps or
improvement. It is still a measurement tool,not a management tool.
Several actors appear to contribute to the
paralysis setting in ater the dashboard light
changes
Factor #1 - Neither marketers nor
management are spending enough
money on accountability and analytics
The 2006 ANA/MMA Marketing
Accountability Survey reported thatover 50% o companies responding had
no separate budget or accountability
or were unding those eorts out o
working marketing dollars The study
urther showed that nearly two thirds o
companies who provided an estimate
were spending less than 2% o the total
marketing budget or accountability and
analytics
Factor #2 - The metric chosen isntactionable; it is an input metric or
an intermediate metric with a vague
provenance leading to nowhere Far
too many metrics are lagging indicatorspresenting a perect rear view mirror
image o the crash behind you but no
orward looking line o site to what is
about to occur
Factor #3 - The metric chosen isnt
connected to the strategic responsibility
assigned to marketing within the
company Even though the metric says
something is wrong, no one accepts that
marketing has the power to improve themeasure especially the marketers
Factor #4 - No one demands an
understanding o why a number turned
south Everyone is working at such a
rantic pace that neither management nor
marketers eel they have the time to slog
into the swamp o data to understand
what went wrong and develop a plan to
x it
Factor #5 - Marketers have no causal
model, no generally agreed or, better
still, proven correlation linking a specic
metric to a sales result This goes back to
choosing metrics that are leading versus
lagging indicators, but it goes deeper
Marketers cannot produce a causal
model and identiy leading indicators
unless they have an analytical model and
actually employ the model until it yields
results
Simply stated, no dashboard will produce
accountability unless it is ed by a program
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which is adequately unded, intelligentlydesigned and committed to analytics Based
on our discussions, our behaviors are
required i marketers are going to become
totally accountable
Accountable Behavior #1- Demand
analysis at the level o the individual
initiative, especially when a
recommendation is made or a major
initiative such as a new product
introduction or the penetration o a newtarget customer group
Accountable Behavior #2 - Express
that initiatives objective so that it
can be measured Identiy the major
assumptions that lead you to conclude
the eort is worth doing and make
them explicit (eg Im going to reach
this many customers with this many
messages and those customers are
going to change their behaviors asollows)
Accountable Behavior #3 -Create a
measurement plan Make explicit how
you are going to measure the success
o the initiative These should be linkedto the objectives and assumptions
mentioned above
Accountable Behavior #4 - Develop
a causal model that identies over the
longer term, which metrics are most
reliably predictive o marketplace
success
Accountable behavior #5 -Recognize
that you must spend money to makemoney Most aggressive accountability
programs backed by contemporary
analytics will produce dramatic returns
exceeding 0 to , even greater returns
during the introductory phases
These accountable behaviors can all be
enabled by developing an analytical ramework
Totally accountable companies have such a
ramework and use it to provide structure and
direction to their accountability eorts
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An Analytical Framework o Who, What and How -
The Key to Accountability
Analysis isnt easy Oten analytics, whether
rom third parties (vendors) or rom a
corporate group, ocus on the result o the
expenditure (the ROI) They rarely i ever oer
insight as to why the ROI wasnt quite what
had been expected Truly valuable analysis
is ocused at the latter issue (why was the
ROI, the NPV or sales number what it was?)
Thats why one needs an analytical rameworkI one is unable to develop a homegrown
version there are rameworks oered by many
vendors including EMM Group (the author
o this report or the ANA), Integration-IMC
and others EMM Group and Integration-IMC
espouse that marketing organizations build
marketing metrics programs around a simple,
yet eective Who, What and How ramework
in order to become more accountable
The ramework itsel is easy to articulatebut it involves disassembling and then re-
assembling the component parts o marketing
The ramework asks or the answer to one all
encompassing question: Am I ocusing on the
correct target group with the right message
delivered by the right channel to achieve
my objective To arrive at the answer to that
question, however, requires the marketer
to slog through a number o permutations
and combinations o who, what and how
Fortunately, with multiple repetitions, thequestions get ewer and the answers get
clearer
Outlined below are examples about how to
establish and use the ramework
WHO
When a metric ails to meet expectations or
when you want to improve an already excellent
metric, you start by ocusing on the customer
Any given customer set can be segmented in a
myriad o ways but virtually all all along one o
three basic axes, demographics, behaviors and
attitudes
Demographics
Customer geographic location
Age / income / education / race / sex
Job title / unction
Socio-economic class
With/without a characteristic (type o
dwelling, disease, etc)
Size or type o customer (SIC code)
Behavior
Volume o purchases (heavy / medium /
light )
Frequency / recency
Type o purchase (order size, number o
items, categories purchased)
Loyalty (share o requirements)
Usage occasion
Purchase switching
Increase in annual consumption / purchase
Trade up to higher margin products or
services
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AttitudesNet promoter score (high / medium / low)
Preer X/Y/Z characteristic / unction
Need state / attitude actor
Reason or purchase
For example, i the brand were in the oral care
category, the who might be:
Total buyers
Large amilies (demographics)Household head < 30 (demographics)
Loyal buyers (behavior)
Consumer segment oering greatest prot
potential (behavior)
Purchase most oten in mass channel
(behavior)
Whiteness concerned (attitudes)
Gum concerned (attitudes)
Cavity concerned (attitudes)
Germ concerned (attitudes)
The metrics across these multiple Whos
might be:
Intent to purchase
Purchased last
Purchase exclusively
Will consider
Brand I have recommended
Most innovative brand
Best value
I the vertical were a service such as packagedelivery, the segments might be:
Total customers
International shippers
Frequent shippers
Primarily ground / air
Contract shippers
Non-contract shippers
Shipment size < 5lbs,5-20 lbs, 20 to 00
lbs, > 00 lbs
The metrics could be:
% increasing volume / % decreasing
volume
Ease o use
Pick up reliability
Delivery reliability
% prot margin per mile
Consideration set inclusion
Company I recommend to others
The intent is to nd the combination o
customer segment and metric which provides a
predictive insight into uture perormance and
thereby acilitates the development o action to
prevent the problem and improve results going
orward
WHAT
I a metric ails to improve or even declines,
then, ater investigating the target audience
issues, the analysis should ocus on what the
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marketer is oering By What we mean thevalue proposition or benet you are oering to
customers
We recognize that what could logically include
issues outside the unctional responsibility
o marketing For example, in consumer
packaged goods the perormance attributes
o your product versus a competitive product
as experienced by the consumer In retail,
the what could be the in store environment
or the service quality in your outlet versus acompetitive outlet In a business to business
vertical, the what could be the price o the
product or a logistical capability issue versus a
key competitor These disparate characteristics
(product perormance, in store service, price or
logistics) are important components o the what
experienced by the customer and need to be
understood in detail However, as a general rule,
the marketing unction has limited short term
control over many o them Thereore, they need
to be reported separately and not as measures othe marketing unctions responsibility
Marketing is primarily responsible or conveying
the value proposition / benet to the customer
so marketing needs to measure the appeal o its
message
This paper does not presume to tell marketers
which measurement protocol to use Most
marketers have competent proessionals who
are amiliar with various vendors approachesto measuring the appeal o a benet Our
purpose is to lay out some broad principles and
concepts which leading marketers nd helpul in
understanding the appeal o the what
First and most important, make sure to ask theright target respondent This obvious caution is
actually somewhat dicult to achieve in many
B2B industries where the decision makers
and decision infuencers may be buried in the
customer organization or not readily accessible
to who ever is trying to generate a response
The success o customized internet panels that
acilitate responses rom normally inaccessible
executives is a tremendous boon to marketers
in various industries where marketers have long
depended on second hand or apocryphal dataregarding benet appeal
Second, look beyond a top line preerence
number measuring the overall preerence or
Brand A versus Brand B The whole purpose is
to isolate a specic benet or the one you are
basing your marketing appeal upon Marketers
should utilize a protocol with rich diagnostics
oering explanations or at least hypotheses or
why a specic number is what it is Some ANA
members employ the popular Net PromoterScore (NPS) approach as the primary metric or
measuring a brands equity They tell us that they
also utilize supporting diagnostics to help explain
why the NPS number ( 86, 75, etc) is what it is
and what needs to be done to improve it
Marketers should use protocols that help them
understand the relative appeals o various
benets especially among various target
audiences An example is the Contribution
to Preerence approach cited earlier in thisdiscussion By grouping responses (reasons or
preerence) under various similar actors, the
marketer gains valuable insight into why Benet
A is not moving overall preerence quite as
powerully as is Benet B
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Third, use a protocol that provides acompetitive context Knowing how you
measure in the absolute is certainly helpul
but most marketers compete in a multi brand
environment where your company may be
excellent at Benet X but a competitor may be
conveying that benet in a superlative ashion
One o the problems with the monomaniacal
ocus on Marketing ROI is that it provides
zero competitive context You may have a
satisactory number but it may be much
poorer than a direct competitors return in thesame channel The same logic argues or a
competitive context in measuring the what
Look or ways to express your benet in
terms o a dierence between you and your
competitors Try to establish a metric or
ownership o a benet in this competitive
context Ownership may mean a much higher
rating than a competitor on a 5 point scale
or it may mean being allocated more chips
in an chip allocation exercise Strive or asignicant and growing variance between you
and competition
Fourth, measure benet perormance and
customer comprehension with a consistent
protocol over time In many verticals, customer
reaction to benet positioning changes very
slowly Expecting a change in a ew months
just isnt realistic in most verticals under
normal circumstances especially when its
actual deliverance may depend primarilyon other corporate unctions (product
development, in store service, logistics,
pricing, etc)
Thats why some marketers understandablywant their perormance measured by actors
over which they have primary control (eg
ad copy scores, especially the persuasion
element) Some marketers argue that this is
the airest way to measure their contribution
because it removes all the actors (ie product
or service delivery, media weight, pricing and
distribution) which can and do aect customer
rankings in the marketplace yet are beyond the
direct control o the marketing unction
With these as principles or guidelines, here are
the kinds o metrics which you might consider
developing:
Relative importance o chosen benet
versus all other benets in the vertical in
the target audience (Benet A = 28%,
Benet B 22%, etc)
Change in the importance o that benet
(Benet A was + 5% now +9%)
Ownership o that benet as measured by
metrics such as:
Relative ranking dierence on a 5 point
scale on Benet #
Brand A ranked at 45, Brand B at
39 , 06
Relative ranking versus average on 00
point scale on Benet #2
Brand A + 0 points, Brand B
-5 pts, 5 points
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Share o mentions in category on Benet #3Brand A gets 28% o mentions; Brand
B gets 22, 6% points
Ratio o mentions versus share o market
on Benet #4
Share o mentions = 33 while market
share= 22; ratio = 33/22 = 50
Absolute score on Benet A in copy test
versus previous copy
Copy persuasion score
Copy point registration on:
Dierent
New
Likeability
Inormative, new inormation, learned
something new
HOW
Over the past decade, while conventional
marketing weapons have becomeprogressively less eective and less ecient,
the number o communications options
available to marketers has exploded Not only
have the number o options in conventional
communications vehicles such as television
dramatically increased with the ubiquitous
availability o multi-channel cable and satellite
operations, but completely new options such
as search engine driven internet marketing
have become extremely important
As conventional options have become less
and less ecient, marketers have turned
more requently to options such as events,
trade shows and even targeted special print
publications In many cases, o course,
marketers are assembling integrated marketingcampaigns which combine the unique
capabilities o various media to produce
an eective synergistic campaign These
integrated campaigns oten involve three or
our separate marketing vehicles in concert
with a targeted sales campaign and selling
message
The prolieration o marketing options and
especially integrated multi-vehicle campaigns
has driven management to ask marketers,Do we need to spend dollar X on vehicle Y
when we are already investing in three or our
other vehicles at the same time? Why cant
you just ocus on the one or two channels that
are the most eective? Why dont you know
how to spend the shareholders money more
eciently?
Larger advertisers with larger budgets have
been able to address the relative contribution
o individual components o these multi-component integrated campaigns using
market mix modeling and various multi-
variate analytical techniques But most
marketers cannot continuously employ these
sophisticated analytical techniques because
they are perceived to be too expensive
Additionally, many marketers eel these
techniques unairly penalize the marketing
unction because they include the eect o
many aspects o the user experience over
which marketing has little or no control (price,product or service perormance, logistics, etc)
Recently several suppliers have developed new
approaches to measuring the eectiveness o
the how component o the marketing equation
(Who should I target with what message and
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how should I deliver it?) These approachesdier in various ways Rather than discuss the
merits o one or the other, we shall use one
o the newer research approaches developed
by Integration - IMC to discuss the general
subject We recommend marketers review all
research protocols to choose the one that best
meets their unique need
The Integration - IMC approach ocuses on
helping marketers choose the most eective
marketing contacts to engage a customer Intheir parlance, a contact could be any one o
dozens o dierent marketing vehicles such as
television, print, a test drive o an automobile,
a closed circuit telecast in a physicians oce,
a neon sign at a sporting event, a trade show,
a website or in store POS material, etc) Their
principal measure is brand engagement
points and brand engagement share In
eect, they provide a one number reading o
how various contacts engage with customers
on a category by category and brand by brandbasis They DO NOT measure the eect o
a marketing option on brand sales only the
ability o a marketing option to engage the
customer This approach has the disadvantage
o not measuring ROI but it has the advantage
o avoiding most o the infuences or which
the marketer is not responsible (Pricing,
product perormance, etc) This approach
ocuses on decisions or which the marketercan be legitimately held accountable: the
choice o marketing vehicles (or channels in
their parlance) and the relative monies spent
on one contact type versus another
The research protocol o Integration - IMC and
similar approaches has been widely discussed
in the marketing research and academic
community and most have been subjected
to intense reviews and validation by ARF or
similar responsible sources Again, pleasebe aware that other vendors oer similar
approaches with varying advantages and
disadvantages in cost, comprehensiveness,
geographic and industry applicability, etc
For a quick summary o the Integration - IMC
approach see Appendix III
New research techniques provide marketers
with new inormation with which to develop
integrated campaigns These techniques also
enable marketers to measure the relative costo experience points or each o the contact
types they employ Such metrics provide
marketers with a new yardstick or evaluating
the eciency and eectiveness o new media
options which have proven hard to evaluate
using previously available methodologies
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Total Accountability = Total Credibility
The work by the ANA Marketing
Accountability Task Force over the past
ew years clearly indicates that marketers
are striving to increase marketings
credibility Progress has been made but
much work remains to be done
Admittedly, marketing IS harder to
measure than other corporate unctions
Building robust accountability processesand programs by starting with the best
practices outlined in this report, can
serve to overcome the skepticism o
CEOs -many o whom lack a marketing
background - about marketings eciency
and eectiveness
To the marketers we say simply, earn
a seat at the table by building a robust
accountability program The tools andprocesses are at your nger tips
To the CEOs rustrated with Marketings
accountability we say, mandate that
unds are set aside to make marketing
accountable You dont need to be
a marketing expert to enorce the 0
commandments o accountability shown to
the right
I you ollow these ten commandments,you will be well on your way to total
accountability
The ten commandments o
total accountability
Create a multi-unctional
internal accountability team
Agree on the expectations
that the management team
has or marketing
Choose metrics that align
with expectations
Select predominantly leading
indicator metrics capable o
driving a causal model
Create a robust VOC so
you understand the target
customer
Demand an explicit plan to
build brand equity
Develop measurableobjectives or 90% o
marketing expenditures
Use a rigorous process to
build integrated marketing
plans
Analyze 90 % o marketing
expenditures using a who,
what, how ramework
Create an accountability
budget sucient tomeasure 90% o marketing
expenditures
2
3
4
5
6
7
8
9
0
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Appendix
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Appendix I(Catalogue o Metrics rom the 2005 ANA Marketing Accountability Task Force Findings)
The work o the 2005 ANA Marketing
Accountability task orce was twoold: ()
to review current best practices used by
ANA member companies to improve their
marketing accountability; and (2) to provide
a practical catalog o accountability metrics
used by industry practitioners rom which
marketers may choose those appropriate to
their unique situation This need relates directlyto one o the task orces principles o best
practice - identiying managements strategic
expectations o marketing and developing
metrics to express progress or lack thereo in
the targeted responsibility
Current best practice suggests that metrics
refect the strategic intent which a companys
management has or its marketing unction
I management expects marketing to build
brand equity then measure that I deliveringsales prospects is important, measure that I
increasing the lietime value o customers is
important, measure that With this principle in
mind, the appendix that ollows groups metrics
by strategic intent
Every company and every vertical is dierent
Thats why the appendix includes several
metrics under each strategic intent These
unique metrics represent dierent ways
which study participants responded to their
managements request or accountability about
a specic strategic intent they attribute to the
marketing unction
The appendix provides a method o calculation,
likely data sources and the types o verticals
or which this metric may be appropriate We
do not claim this list is exhaustive We expect,
indeed we hope that this starter list will inspire
users to develop dierent but more appropriate
metrics or their company
This appendix represents but a beginning We
welcome comments, questions and additions
rom every marketer
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InnovationDefnition/Calculation
Source odata
Calculation ortechnique
Verticals whereappropriate Problems or concerns
$ sales Sum o sales oproducts/services/retail locations < 3yrs old
InternalCompanysales
Simple additionResults comparedto previous year
Virtually universal Simple, broadly applicable,practical measure
% o $sales rominnovation
Sum o sales oproducts/services/retail locations 2 yearsIdentiy # advancedin grade Calculate% advancement
Broadly appropri-ate or virtually allverticals
Must be used aspart o batteryo balancedscorecard metricsCompared toindustry norms etc
Turnover A balanced score-card includingturnover amongemployees< 2years, amongemployees ranked
superior, amongmiddle manage-ment tier
Internalcompanyrecords
Identiy separatedemployees placewithin measuredgroup, derive %Compare over time
Broadly appropri-ate or virtually allverticals
Needs to beplaced inperspective overtical andtracked over timeRationale behind
turnover needed
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Public Relations
The somewhat ephemeral nature o the publicrelations unction has led to a renzy o metricsdevelopment Several highly competent industrygroups have developed approaches worthy o studyAs one o our study participants pointed out, theirony o all these eorts to justiy public relations isthat everyone intuitively agrees about the power andcredibility o an artul PR campaign Nonetheless,
it remains challenging to disaggregate the eectso PR rom many other company activities Thisis especially true because many companies leanhardest upon PR to mitigate the negatives o someexternal untoward event The elonious attempt topoint the nger at Wendys is a classic example othe challenges o creating PR metrics The chartbelow oers some creative metrics shared with us
Public RelationsDefnition/Calculation Source o data
Calculation ortechnique
Verticals whereappropriate
Problems orconcerns
AVEs (advertisingvalue equivalent)
The conversion onon paid mediamentions intothe equivalent oadvertising grossrating points
Third party dataproviders
Capture o impres-sions by mediatype and then theirconversion into theequivalent o paidgross rating points
Many verticalsand productcategories
Dicult to ascertainquality o mention,context, messagedelivered or aect onmessage recipientA classic inputmeasure
Target StakeholderResponse
Attribute rankingamong selectedstakeholders(Industry thoughtleaders, media,shareholders, etc)
Brand trackertype survey
Survey researcho targetedstakeho