How do we reach and communicate value to customers?
Driving demand is where Marketing rubber hits the road. All of Marketing's strategic thinking and counseling about micro-segments, profit potential, the offer and competitive pressures comes to life in advertising, promotions, online efforts, public relations and events.
Marketing manages its tactical performance by analyzing:
- Promotions and communications.
- Marketing campaigns.
- Internal resourcing.
- Response rates.
- Cost per response.
At the same time, Marketing must understand whether or not the company is acquiring the right customers for the ideal future portfolio. This is key to understanding the results of a micro-segment marketing effort.
With the Demand Generation decision area, you can set planning goals and scorecarding metrics for performance management elements such as:
- Marketing campaigns (#).
- Marketing spend ($).
- Marketing spend/lead ($).
- Qualified leads (#).
- Promotions ROI ($).
- Baseline and incremental sales ($).
Most importantly, you can analyze these goals and metrics by a number of dimensions to find the hidden gems in the data:
- Industry and region.
- Market segment (macro & micro).
- Brand and product line.
- Marketing method.
- Marketing campaign.
- Sales organization.
- Weeks of promotion.
Using the Demand Generation decision area
As a Marketing professional, you set targets, plan campaigns and create tactics based on your targets for the goals and metrics in Demand Generation. You monitor your success by looking at how you measure up against your targets. Further, you dive into your results to find out more about these elements affecting performance management.
- Promotions ROI ($): Do our ROI targets and marketing spend mean we will generate enough activity for a given region?
- Marketing spend/lead ($): Can we look changing the marketing mix to lower our cost per lead?
- Incremental sales (#): Are their regions where our marketing efforts generate more sales activity?
Improving Marketing tactics means understanding what elements work better than others. What provokes a greater response? At what cost? With a wide variety of options for online, direct response and traditional advertising, Marketing needs to know which tools work best for which groups.
Understanding and analyzing this information is key to alignment and accountability.
