Comments on: CMOs upbeat about spending levels, frustrated with organizational culture…and falsely betting on ROI

By: » The mindset of marketers on ROI and engagment - Marketing Conversation - New Marketing and Social Media by Abraham Harrison LLC Marketing Conversation - New Marketing and Social Media by Abraham Harrison LLC

Fri, 18 Jan 2008 15:47:26 +0000

[...] Gossieaux, in Emergence Marketing, makes an excellent point in refuting the heavy emphasis on ROI in marketing, period. “by [...]

By: francois

francois — Wed, 16 Jan 2008 18:22:19 +0000

Bruce – good to hear from you an thanks for the comment. I agree that marketing should be measured…and should have made that clear. I just think that it needs to be measured differently. I posted some follow-up thoughts in a more recent post – http://www.emergencemarketing.com/index.php/2008/01/16/measuring-marketing-roi-can-be-harmful-to-your-marketing-department/

By: Bruce Fryer

Bruce Fryer — Wed, 16 Jan 2008 17:17:54 +0000

I agree that current marketing ROI linear thinking just doesn’t cut it:if A and B then C, when in reality it’s more like predicting how much snow will fall a month from now in one town. But I still believe there needs to be metrics before engaging in a marketing program. After all, why are you doing it in the first place? But they most likely will be ancillary metrics. And it keeps management happy. Just remember, whatever you measure will improve. But is it the right thing?

By: francois

francois — Wed, 16 Jan 2008 00:40:07 +0000

Jon – thanks for the comment – I appreciate the time.

I am not sure, however, how marketing 2.0 is any more “measurable” than marketing 1.0. If anything, and due to the fact that there are so many more outside factors (i.e., CGM) that influence buying behavior I would say that marketing 2.0 is probably harder to measure than 1.0 campaigns.

Also, and by forcing CMO to break down marketing in discreet processes that can get an ROI associated with it, aren’t companies continuing to send a message that marketing is nothing else but a cost center? If they were looking at marketing as an investment they would not measure it that way.

I also do not quite get what you mean, or how you concluded from the survey, that marketing will tip into the mainstream in 2008. I thought Marketing became mainstream when Management Guru Peter Drucker said “Because the purpose of business is to create a customer, the business enterprise has two–and only two–basic functions: marketing and innovation. Marketing and innovation produce results; all the rest are costs. Marketing is the distinguishing, unique function of the business.” – that was last century…

By: Jon Miller

Jon Miller — Wed, 16 Jan 2008 00:02:01 +0000

If you download the Executive Summary of the CMO Council report, you can read my commentary article, titled “Marketing 2.0 Hits a Tipping Point”. (My company, Marketo, was a sponsor of the survey.)

In my article, I directly address some of your points related to Marketing 2.0, e.g.:

1. Marketing 1.0 was about using push marketing tactics, such as cold calls and unsolicited email, that work but only if they interrupt the customer’s attention. In contrast, Marketing 2.0 uses “behavioral marketing” techniques to engage when and how consumers want, in direct response to behaviors and buying signals.

2. In Marketing 1.0, marketers thought they can control the message as well as the customer’s buying cycle and agenda. In Marketing 2.0, customers interact with each other, and marketers nurture passion and engagement from their best customers – marketing with prospects rather than marketing to them.

3. Marketing 1.0 was characterized by a severely limited ability to demonstrate ROI and marketing accountability, which lead to the perception that marketing is as a cost center. But Marketing 2.0 gives marketers the ability to measure the bottom-line impact of every marketing activity, to quantify the impact of changes to marketing budgets, and to demonstrate marketing’s impact on revenue.

My interpretation of the Marketing Outlook 2008: 2008 is the year that Marketing 2.0 will tip into the mainstream.

http://www.cmocouncil.org/resources/form_mo_execsummary.asp