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Treatment payback of marketing from short-sightedness

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Marketing budget is usually the first to fall under the reduction – it is a fact of life. The reduction of the budget in other areas of the business affects people, expensive equipment, and marketing budget can be restored in the next year. Thus, reducing the marketing budget – is often the first reaction of most financial directors of many companies. According to the financiers, the effectiveness of control marketing costs are significantly lower than the control of production costs, sales and service logistics (research Shaw & Fisk, 2002). The need for better control of marketing and its reporting is recognized not only financiers, but also marketers.

Myopia return on marketing – a common symptom of many companies and different industries. Most marketers happy to talk about creativity, that marketing deserves to be seen as the main engine, the “heart of the business,” but many are beginning to get bored when it comes to calculating a cost-effectiveness and on budgets.
Surprisingly, very little attention to the costs and budget allocation is reflected in the majority of books on marketing. For example, the volume of the material devoted to the evaluation and determination of the cost of investment and marketing budget can be seen in the following data:
- Textbook Kotler Marketing Management, Volume 7 – 1.7% of the total volume of the book (the advertising budget of 1.5 pages, the budget for promotion – 2 pages, the cost of marketing on sales analysis – 1 page, etc.)
- Tutorial Aaker Managing Brand (1991) – 0%
- Doyle, Marketing Management and Strategy, Edition 2 – 0.8% (budgeting – 0.25 page advertising budget – 3 pages)
- MacDonald, Marketing Plans, 4th Edition – 0.3% (marketing budget – 1.5%)

Can you trust the marketing money? Management reporting provides ten times more information on the costs than income, marketing research is more concerned with awareness of their brands. Such indifference to money often leads to the fact that the marketing companies do not trust.

There are two ways to solve problems. The first – to address issues as they come and try to explain the black hole costs related to marketing, it is impossible to measure and distinguish between many other parts of the business, particularly the sales department, poor CRM system, intangible assets and so on. The second way – to try to deal with the financiers. Define together how and what can be measured and calculated. What are the indicators to assess the financial director in the consideration of reports of managers marketing?

Especially for product managers of pharmaceutical companies developed a seminar that addresses the possible financial assessment tools marketing effectiveness and solution of the conflict between financiers and marketing managers.

Seminar “Financial evaluation of marketing investments” – 23 May. Sign up!

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