Marketing effectiveness through science

Marketing is too important to be left to the marketing department. David Packard

Measuring the performance of your marketing activities is crucial when trying to gain a competitive edge. There are many ways to evaluate the effectiveness of a given campaign and quite often KPI’s like ad awareness and ad recall are used to indicate goodness. Marketing effectiveness takes the analysis one step further into real consumer behavior by measuring the return on the marketing investment. This is the first step towards true fact based marketing.

This type of analysis allows your business to answer questions like:

  • What is your overall return on marketing investment?
  • Are the money you are putting into direct marketing cost-effective?
  • Is the new creative platform working?

Marketing metrics

On top of this it’s also relevant to view your marketing effectivess from several different angles. This is especially true with ROI since the campaign with the highest ROI is certainly not the one that has yielded the most profit. Many marketeers are too focused on ROI alone and forget that net profit and sales volume is what really matters. Furthermore, many campaigns are not sales oriented. Rather they’re expected to generate higher values of soft metrics like awareness, liking, penetration and preference. Not surprisingly, some media channels and media mixes are better at targeting specific metrics.