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February 9, 2006

Hierarchy of Effects - BS or Baseline?

Over 100 years ago, marketers first conceived a model for consumer purchasing behavior. Originally, it was suggested to be a very simple model of four stages:

Awareness › Interest › Desire › Action

In the 1960s, the model was refined and relabeled as the Hierarchy of Effects (HOE), founded upon the assumption of a three-stage process underlying consumer purchase behavior:
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January 30, 2006

Brand Value vs. Brand Valuation

There’s a difference between “brand value” and “brand valuation.” Brand value is the strategic and financial value of the brand to your company today. Brand valuation is a financial exercise intended to put a price on the brand over and above the discounted future cash flows. The difference can be subtle. Tim Ambler of the London Business School uses this metaphor to describe the two: “Since I live in my house and plan to do so for some time, its value to me is the shelter and comfort I derive from it.

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January 23, 2006

Organizational Metrics - Often Overlooked

With most dashboards focused on programatic performance and creation of economic value, it's not hard to understand why critical organizational metrics are often forgotten and left off.

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January 16, 2006

Can You Legitimately Manufacture Data You Need?

Aside from a few purely direct-response businesses like catalog retailing, there is no business today capable of completely and comprehensively measuring marketing effectiveness without some doubt. Even the soundest efforts require that significant assumptions be made to fill the gaps in the data or deal with the uncertainties of dynamic markets, such as:

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January 9, 2006

Does Too Much Measurement Constrain Creativity?

Does a comprehensive marketing measurement framework impinge upon the very creativity and innovation marketing needs to provide to the organization? I suppose the answer is, "it depends".

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January 2, 2006

Winning the Guessing Game

Despite all the hand-wringing over marketing getting "a seat at the boardroom table," the irreversible trend we’re seeing in measurement of marketing effectiveness has improved both the return on marketing expenditures and the credibility of the marketing function within the corporation. Database technology, analytics, and Web presentation tools have all contributed to an unstoppable wave of desire to understand and quantify the impact of marketing expenditures on the company’s bottom line. All this is unquestionably for the better.
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December 21, 2005

Can You Link Brand Ads to Profits?

How do you know if your "brand advertising" is creating real financial value?

Let’s say you have a tracking study out in the market in which you’ve identified 15 key brand attributes and have a sampling of customers and prospects rating your brand vs. competitors on each attribute. You also ask about self-reported purchase activity in your category. You survey 200 people each month and read the results on a rolling three-month basis.
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December 11, 2005

Forward-Leaning Metrics

Most of us have a pretty keen ability to look backward and know where we’ve been. Many of us have even advanced that skill to be able to look around and know where we are at the moment. But knowing whether you’re on track for where you expect to be six, 12, 18 months from now … that’s something only a very few managers have mastered.
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December 8, 2005

Revenue Metrics - Bad for Credibility

Marketers show a tendency to use dashboard metrics that relate to revenue (topline sales) as opposed to profits (bottom line). This is a critical error that not only risks misleading decision makers about the effectiveness of marketing investments, but also perpetuates the cynicism with which other departments view marketing.
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December 7, 2005

How Much Risk Is in Your Marketing Plan?

Globalization, multichannel marketing, supply-chain management, strategic alliances, regulations, corporate governance — marketing is riskier today than ever. To put their companies at competitive advantage, marketers need to take more calculated risks. Yet to most marketing departments, "risk management" is limited to customer credit and vetting vendors — functions usually handled by finance or purchasing.
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