Return on Marketing Investment is a method that links marketing activities to sales & understands how each activity has impacted in driving sales in the short and ling term, leading to optimized planning and budget allocations.
Advantages
- Isolates impact of each activity on sales.
- By advanced analytical modelling that is grounded on consumer behaviour and with all elements being considered at the same time.
Applications
- Integrated, holistic analysis of marketing activities on an annual basis.
- Quarterly performance monitoring system to enable course correction.
Process
- No primary research involved, uses data already resident at the client’s end.
- Specifically takes in as inputs – retail audit data, brand tracking data, GRP deployment data as well as sales team inputs on below the line activities.
Output
- Calculation of ROI of each individual activity (specific thematic, specific promotion, etc.).
- Optimization of marketing activities – both level of investment as well as scheduling planning.
- Sensitivity analysis.
- Pricing directions as well as setting KPIs for Brand Image scores using sales as the end point.