Transcript MMRAP Presentation - American Marketing Association

Marketing Mix Resource
Allocation and Planning
Audit and content development update
Aug. 4, 2007
Roger Kerin and Rob O’Regan
Summary
• Call for Papers
• Knowledge Audit
• Document Review
– Preliminary conclusions
– Potential case studies
• Potential Content Deliverables
• Next Steps
Call for Papers
1. Marketing Resource Allocation and Planning:
An Overview of Models and Approaches
2. Marketing Effectiveness: Practical Approaches
to Measurement and Management
3. Uncovering Marketing Resource Allocation
Strategy in a B2B and B2C World
4. Strategic Allocation of Resources: Methods
and Insights
5. Practical Measurement of Advertising Impact
1. Marketing Resource Allocation
and Planning: An Overview of
Models and Approaches
Author: Sunil Gupta, Harvard Business School
Summary: Increasing availability of data and the
sophistication in computing technology has
enabled the development of new methods to
assess the effectiveness of marketing
investment. In this paper we will review the
academic advances in the models and
approaches for allocation of marketing
resources and how they can be used by
managers.
2. Marketing Effectiveness:
Practical Approaches to
Measurement and Management
Author: Gordon Wyner, Millward Brown
Summary: This article provides an overview of the
approaches companies take to understand how well their
marketing investments achieve their intended business
goals. It includes the "top down" analyses of the impact
of marketing mix elements on market performance over
time, "bottom up" approaches to understanding the value
of customers, and methods for understanding the impact
of individual marketing and communication levers,
including new media options. The focus is on how these
issues are addressed in practice and used to plan for
resource allocation.
3. Uncovering Marketing Resource
Allocation Strategy in a B2B and
B2C World
Author: V. Kumar, University of Connecticut
Summary: Proliferation of new media coupled with the lack of
justification for the ROI impact of the traditional media have
forced firms to evaluate their resource allocation strategies
across different media. In this paper, we identify the major
trends in resource allocation in B2B and B2C firms. Next, we
illustrate through specific case studies how resources are
optimally allocated across various marketing activities. In the
B2B scenario, we show the distribution of the resources
across four direct media channels – face to face, telephone,
direct mail and email. In the B2C firm, we show the allocation
of resources across mass media channels: TV, Print, PR,
Radio, Sampling, Promotion, etc. Finally, we review the value
of such allocation and the objective function used for optimal
allocation of such resources.
4. Strategic Allocation of
Resources: Methods and Insights
Author: Venky Shankar, Texas A&M University
Summary: This article discusses how firms strategically
allocate their resources between marketing and nonmarketing variables, across products and markets, and
over the product life cycle. It presents resource
allocation processes, models, and insights with
examples and mini cases drawn from multiple
companies and industries. It highlights emerging
methods and research directions in strategic resource
allocation and planning for both executives and
researchers.
5. Practical Measurement of
Advertising Impact
Authors: Anil Menon/Todd Powers, IBM
Summary: This paper will cover the comprehensive
approach to creation, evolution and evaluation of
advertising that IBM has employed. Modeled loosely
on a hierarchy of effects "funnel" model of marketing
effectiveness, the approach involves applying the
appropriate measurement tools at key stages of
advertising development, including creative input and
evaluation, copy testing and in-market measurements.
In particular, we explore the use of ad recognition
techniques, "favorable selling environment" metrics,
and direct ties to pipeline and revenues to demonstrate
a measurable return-on-investment for advertising
investments.
Knowledge Audit
• Conducted between March-May 2007
• Sources included online databases (EBSCO,
Nexis, Atypon), search engines (Google,
Technorati), and individual websites of more
than two dozen publishers, consultancies,
universities, associations, and vendors.
• Approximately 200 documents (articles, white
papers, blog postings, research reports, books)
selected for review.
Document Review:
Preliminary Conclusions
• When it comes to new media’s role in the marketing mix,
there are plenty of emerging “centers of excellence,” but
little holistic perspective
• Budget allocations are shifting, slowly
• Majority of new media investment is new money
• Interactive efforts are still largely “test and learn” (two
main exceptions: email and search marketing)
• New skills are required, but not yet prevalent
• Lots of noise, but not a lot of practical advice and
direction for practitioners
• Credible case studies of new media allocation are few
and far between
Money Quote
“34% of consumer media time is spent
online, but only 6% of the overall
marketing budget is spent online. That’s a
pretty big disconnect.”
- Shar vanBoskirk, Forrester
Potential Case Studies
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P&G
General Motors
Burger King
Microsoft
Kodak
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Sony
Diageo
adidas
Verizon
HP
Potential Content Deliverables
• Book (based on solicited papers)
• Reference library (from audit)
• Online microsite (in conjunction with
marketingpower.com relaunch) featuring:
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Articles
Blogs
Case studies
Discussion forums
Wiki
• Original research
Next Steps
•Identify specific knowledge gaps in existing
material
•Identify/recommend additional contributors
from audit materials
•Assign/edit/create additional content as
needed
•Receive, review and edit assigned papers
•Finalize deliverables and distribution
channels
Questions?
• Roger Kerin
– Marketing Professor, SMU Cox School of
Business
– [email protected]
• Rob O’Regan
– Principal, 822 Media, LLC
– [email protected]