Marketing effectiveness continues to become an increased need in businesses as the cost of sales increases and customers buyer behaviour changes. The days of cold calling are limited, and marketing is required to extend its performance to more than just branding and communication materials. It must generate leads, and the right type of leads to support the sales effort.
Marketing can carry an excessive cost to a business with little to no return being achieved. It is an area that many people believe they have competence in doing as they relate to pictures and content being its primary function. Without fully understanding the capability required and the contribution marketing can, and should, make to an organisation, many marketing departments are dysfunctional in the delivery of strategy and contributing to business growth. Furthermore, they are unhinged from sales creating a chasm of lost opportunity and escalating costs.
CEOs ask the questions:
- Should we be achieving better results from our marketing?
- How well is marketing aligned to our sales activities and requirements?
- Where can we improve our marketing performance, cost effectively?
- What Business-Level Strategy Should We Employ?
The following will provide some insights for you.
Marketing effectiveness is the quality of how marketers take your strategy to market and connect with the right target audience, consistently, with the goal of optimising their spending to achieve good results for both the short-term and long-term while building brand value and equity. It is also related to return on Marketing Investment. Marketing effectiveness is quintessential to marketing, going so far as to say “It’s not marketing if it’s not measured”.
The factors driving marketing effectiveness are:
- Business Strategy: Understanding the strategic vision of the company, the goals and year to year requirements for growth. Establishing the customer profile and spend requirements to ensure all marketing is aligned with company strategy.
- Marketing Strategy: Improving marketing effectiveness can be achieved by employing a superior marketing strategy that connects to the business strategy. By positioning the product or brand correctly, the product/brand will be more successful in the market than competitors’ products/brands. A strategy that is attracting and retaining the right customer profile. A strategy building brand value and equity.
- Marketing Execution: Strategy without measured execution is considered useless. How marketers go to market and the channels they select can achieve significantly greater results when aligned correctly. With high-quality communication plans utilising the right mix of communications tactics to meet the new buyer behaviours and connect with the target audience the efficiencies of marketing are established. At the tactics level, marketers can improve their effectiveness by managing and executing each of their marketing campaigns better. Examples would be improving electronic direct mail through a better call-to-action or editing website content to improve its organic search results, marketers can improve their marketing effectiveness for each type of tactic.
- Marketing Infrastructure: Improving the business of marketing can lead to significant gains for the company. Utilisation of highly developed marketing automation tools and customised Customer Relationship Management (CRM) software allows companies to develop highly customised and targeted communications that resonate with target audiences. There are many tools available to marketers to meet the demands of the highly connected world they now operate in.
- Marketing Alignment to Sales: Marketing actions must be aligned to the sales effort. Contributing the right communications and content that will support the sales outcomes. Continual feedback and measurement of the performance of sales with marketing leads is an important part of the marketing effectiveness measurement.
- Marketing Capital: Also known as marketing personnel. The effectiveness of marketing is directly impacted by the quality of personnel within the marketing team and their level of experience and acumen within the various marketing functions.
- Marketing Measurement: If its not measured, its not effective. Marketing must be measured for return on investment (ROI). It must be understood for its complimentary value to that ROI.
Marketing effectiveness is an important step in the life cycle of any company as it is often a major contributor in the connection between strategy and execution. While some marketing managers conduct a limited internal review, for many it can be the first time the marketing organisation has been independently and fully reviewed.
With marketing now intrinsically linked to sales, a review of both areas simultaneously is important. To aid the process, you can organise for a revenue improvement review. The review will answer all the questions in relation to sales performance, marketing effectiveness and alignment to sales.
Please review our services, and you can reach out for a discussion by contact us.
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