June 19, 2007
New Article Highlights Things Your CFO Should Know About Measuring the Financial Return from Marketing Investments
Princeton, NJ, June 19, 2007 -- A new article by Pat LaPointe, Managing Partner at MarketingNPV, highlights the 10 things your CFO should know about measuring the financial return from marketing investments. The article entitled "Building Blocks" is the cover story of the May/June issue of Marketing Management, a publication of the American Marketing Association.
The article delves into the details of one of the most critical relationships for marketers, that between the chief marketing officer (CMO) and the chief financial officer (CFO). It's long been known that a strong collaboration between marketing and finance can lead to positive effects on the marketing budget and support of the CEO. But if good chemistry between the two is missing, how do you bridge the gaps?
The answer is a focused dialogue to build alignment of expectations. "Building Blocks" identifies 10 suggested steps - "discussion starters" - to help marketers engage CFOs and enlist their active participation in helping to improve the measurement of marketing payback.
Insights for this article emerged from LaPointe's research for his book, Marketing by the Dashboard Light: How to Get More Insight, Foresight, and Accountability from Your Marketing Investments (ANA 2005). LaPointe spoke with nearly 100 CMOs and several dozen CFOs from Global 1000 companies. Their perspectives and experiences on measuring the financial return from marketing investments identified the key themes for productive collaboration.
The article can be viewed online here. The entire issue of Marketing Management can be found at the AMA's website.
MarketingNPV is a highly specialized advisory firm that links marketing expenditures to financial value creation, providing continuous improvement in the effective and efficient allocation of marketing resources. The firm uses processes and tools tuned to measure the payback on marketing investments, track the right performance metrics, and forecast the economic impact of changes in strategy or tactics. MarketingNPV maintains the world's largest online archive of articles and resources about marketing measurement, and publishes MarketingNPV Journal quarterly.