What is Marketing Effectiveness?
We’ve spent the last few weeks getting to know our marketing automation partners and friends. They all share the goal of increasing marketing effectiveness. This got me thinking, really what IS marketing effectiveness.
Wikipedia defines marketing effectiveness as the quality of how marketers go to market with the goal of optimizing their spending to achieve good results for both the short-term and long-term. So essentially, effective marketing must grow top line revenue while minimizing the impact on bottom line cost.
There are three fundamental ways marketers can influence marketing effectiveness:
- Marketing Strategy: How you will engage customers, prospects, and competitors in the market. This includes the marketing mix, product development, positioning and segmentation / targeting.
- Marketing Execution: The people, process and technology that enable effective execution of marketing strategy and highly impactful creative. Successful execution of a superior marketing strategy increases marketing effectiveness.
- Marketing Measurement: Good marketers are expected to understand marketing analytics and use marketing performance as the basis for allocating budget effectively. As a result, marketers must measure metrics that matter; metrics that can translate to strategic actions and drive accountability.
At its core, marketing effectiveness is about increasing revenue. Higher returns on marketing investments are a byproduct of effective marketing. However, calculating a true return on marketing investment is no easy task. With today’s multi-channel marketing strategies, it’s difficult to accurately allocate measurable returns to marketing spend.
By scoring best practices across these three areas, organizations can rapidly measure and identify immediate opportunities to improve marketing effectiveness. But, remember the effectiveness of marketing is tied to marketing and sales agreeing on WHAT is handed off and at what stage. If this definition and agreement are NOT in place, marketing effectiveness and overall marketing ROI can go quickly to zero.
Interested in how you measure up?
Be sure to stop back here next week for a few quick assessment quizzes to identify areas of improvement and the overall ability for your organization to maximize marketing effectiveness.