Marketing Accountability main services
These are shown in the diagram below with the tools and technology that can be adopted.
Marketing Due Diligence (MDD)
As marketers, we can have a huge impact at board level if we can demonstrate that our marketing strategies can be linked to future share price. Marketing Due Diligence is a new process that has emerged from years of research at Cranfield School of Management, one of Europe’s leading business schools, that can help do just that.
Before Marketing Due Diligence (MDD), companies have been able to forecast and speculate, but have had no way of testing the quality of those forecasts or translating strategy into shareholder value. MDD blends proven ideas from strategic and financial management with new concepts about organizational effectiveness, to create a process that directly connects marketing strategy to shareholder value.
The MDD process involves two stages:
The first stage clarifies the strategy, providing a clear definition of which customers are to be served and what products and services are to be offered to them. Once this is complete the process evaluates business risk, assessing three areas; market risk, share risk and profit risk.
- Market Risk is the possibility that the market may not be as large as hoped. Obviously strategies involving new customers or products have higher market risk than those involving existing products and customer.
- Share Risk is the possibility that the strategy may not deliver the market share aimed for. This risk is reduced by ensuring your marketing plan incorporates a significant level of risk management and flexibility to cope with a variety of external factors and competitive responses.
- Profit Risk is the possibility that the plan may not deliver the intended profits. This could be due to a lower level of overall profitability in the total market, aggressive competitor response or poor internal cost control.
The second stage of MDD builds on the outcome of the first, using strategic marketing management tools to adapt the strategy, improving its risk profile and to enhance the creation of shareholder value. If there are significant levels of risk, then the full value of the capital put at risk must be calculated and set against the possible financial return generated by the marketing strategy.
Once this process is complete your marketing strategy’s ability to create shareholder value is revealed.
Download the White Paper - Marketing Due Diligence - will the business plan deliver the shareholder value it promises?
Marketing Accountability
Greater accountability for marketing expenditure is one of the biggest issues facing the marketing community today, as CEOs and CFOs lose patience and threaten to cut budgets. From the table , it can be seen that there are three levels of measurement, or metrics.
Level of Marketing Effectiveness |
Areas considered |
Outputs |
Level 1
Marketing Due Diligence |
The marketing strategy ( i.e. the choice of target customers and value proposition) |
An objective assessment of whether or not the marketing strategy will create of destroy shareholder value, together with the identification of how the strategy may be improved |
Level 2
Marketing Effectiveness |
The marketing tactics (i.e. the full range of products, pricing, promotional and channels) employed for each segment identified and targeted by the marketing strategy |
The likelihood of the marketing tactics creating the necessary competitive advantage in each segment |
Level 3
Promotional Effectiveness |
The marketing communications activity (i.e. advertising, sales team etc) employed to communicate with each segment |
The effectiveness of the communications activity in achieving marketing communications objectives such as awareness recall etc |
Down load the White Paper - Marketing Accountability – How do you get greater accountability for your marketing expenditure?
Marketing Procurement
Whether you are an agency or a client, Marketing Accountability can help you deliver cost savings and increase the value of your budgets by working with you on any of the following purchasing marketing areas.
- Review and negotiation of contracts
- Remuneration / Fees - audit, benchmarking and negotiation
- Performance Related Fees / Bonus Management
- Key Performance Indicators
- Service Level Agreements
- Third party Supplier Arrangements
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- Management of the Pitch Process
- Tender Documents completion
- New Agency Transition Plans
- Process and Systems Review
- Client Purchasing Toolkit
- Management of your Relationships
- Training Courses
- Post Pitch Analysis
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Down load the White Paper - Marketing Procurement – Adding Value by spending less?
Additional services
In addition the following consultancy services are also available:
- Strategy reviews
Constructive reviews of a company’s marketing strategy and of its internal and external resources charged with executing it.
- Marketing and procurement consultancy
Consultants who engage with an assigned in-company team to develop a market-winning strategy for the business.
- Board level briefings
Boards of Directors and Senior Management briefings and presentations to win their support and commitment.
- Conference presentations
Motivating and entertaining conference presentations and keynote addresses to enthuse marketers and their business colleagues on the value of marketing.
- Marketing workshops
Hands-on in-company marketing workshops in all the core areas in which delegates improve by applying the learning to their own business.
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