Marketing Investment Risk Control

Without more risk, it will be difficult to raise returns.

But for most enterprises, selective reduction of risk is an improvement.

One of the key factors is that smart strategists will minimize risks through phased strategies.

When the media environment was relatively stable in the past,

The risk is relatively small, but now marketers must use the same tactics to control them.

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In the environment, marketers must also strive to ensure that 75% to 80% of marketing expenditure is used to spread successful information on proven effective media, and the level of marketing expenditure of these information has been confirmed in practice.

Even for those successful

Marketers should also be tested and verified, as many of them have done before.

The remaining 20% to 25% of the marketing expenses should be funded by well planned experimental projects.

One of the best ways for an organization to adopt the principle of return on investment is to choose a time point randomly to assess the breadth and quality of the media or information trials conducted by the organization during this period.

Some experiments are very simple. For example, try to increase the level of marketing expenditure on the information that has been successfully achieved or put the information on the new media; reduce the frequency of direct mail delivery, see whether the response rate has changed; and test new advertising information in a certain area.

Methods are widely divergent, such as testing new information and new media for a growing profitable customer group.

However, marketers who are reluctant to try new ways may not be able to keep pace with the changing media formats, or when they are changing, they will have to take a lot of risks to put their treasure on the marketing plan that has not been proven by practice.

The plan may be a great success, but if you abandon most of the existing successful marketing plans, this may be too risky.

In terms of expenditure and the success of a company, its meaning is different.

A very effective way is to record all expenditures and ensure that the salesperson will convey the correct information to the appropriate consumers.

It is only necessary to assess the marketing budget, and now it is important to consider all expenses of the marketing plan, including at least all sponsorship projects, major media expenditures and related sales mortgage costs.

A more effective approach is to record all expenditures and ensure that marketers pass the right information to the right consumers.

It is necessary to make the expenditure pparent, but it is not enough to do so.

People will track the progress of marketing projects, but few people end to end tracking, such as tracking the impact of marketing expenditure on brand drivers, tracking the impact of these drivers on consumer loyalty, and then the impact of consumer loyalty on income and profits. Finally, whether the marketing expenditure has brought the profit growth.

Only by tracking from beginning to end, can marketers understand not only the current returns of marketing plans, but also why they are effective or ineffective, which is very important for improving future returns.

Officials are now preparing to leverage those leverage that can increase their marketing investment returns.

They should start with integrating existing research data and data sets, which often lie in the filing cabinet.

Then, on the basis of these information, we will work out a unified plan to improve the return on marketing investment through the following steps.

On the basis of similar comparisons, a simple and uniform standard is used to adjust the distribution of marketing expenditures among brands and regions. These standards should distinguish between "sustained" marketing investment and "growth" marketing investment, and distinguish between successful carrier investment and experimental carrier investment.

Identify the most important driving factors for each brand, and track the impact of these drivers on different consumer groups and different media channels.

All sorts of exciting developments are at hand.

Some emerging technologies have begun tracking the specific details of consumers' contact with the media and linking them to the actual buying behavior of consumers.

As third party advertising companies, market research institutions and media companies, they must also work hard to cope with changing marketing environments. They may be willing to adopt new ways of collaboration.

This imperative pformation is a major challenge for most marketing organizations, advertising companies and media partners.

Some changes are symbolic, for example, after a calm investment return analysis, to reject a "sacred and inviolable" sponsorship that the chief executive likes.

Enterprise's business planning process, performance evaluation and team structure also need to be changed.

Unless the organization's way of thinking and behavior are changed, efforts to improve the return on investment in marketing will come to nothing.

This may be more difficult and time consuming than relying on the old rule of thumb or new analysis method, but in today's marketing environment, this is the only way out.