Marketing Strategy and ROI

Marketing & Sales: Marketing Strategy and ROI.  


Marketing ROI is a top concern for CFOs and CMOs. Six in 10 financial executives believe their companies’ marketing departments have an inadequate understanding of financial controls, and seven in 10 said their companies don’t use marketing inputs and forecasts in financial guidance to Wall Street or in public disclosures. Read more about our MarketingEffectiveness services. Moreover, nine of 10 finance executives said they don’t use return-on-investment metrics to set marketing budgets in the annual budgeting cycle. (Two-thirds instead take a predetermined percentage of revenue or simply adjust last year’s budget).


Today most marketing executives acknowledge their ability to measure marketing effectiveness is subpar. Its surprising that marketers don’t believe their numbers either. Only one in 10 marketer respondents said they could forecast the effect of a 10% cut in spending. Just 14% of marketing executives said senior management in their companies had confidence in their firms’ marketing forecasts.Marketers are clamoring for systems to measure ROI and better allocate spending.


There needs to be “full cooperation and an open dialogue with finance in setting metrics and methodologies for marketing ROI. Marketers are trying to learn how to work in partnership with finance. Most CFOs say their firms have an adequate audit trail for tracking what was spent. And more than four of five firms in the survey had some sort of marketing ROI metrics in place. The problem is that CFOs don’t seem to buy the CMOs’ claims for return on investment from marketing spending.


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