How do we report our marketing results up the line?

The Crunch.

Your firm has just spent all of the marketing budget for the period and the board asks how effective the campaign was?  How do you answer in a language they understand?  Do you go into detail about the 5 C’s, do you describe the STP process and how that was applied to your product, do you run on about the 4 C’s and the choices the team made?

Chances are that would not be a meaningful exchange, nor would you have gained any ground in securing your budget for the next period.  Your managers need tangible information.  Li Ling-yee 2011 wrote ‘From a managerial perspective, top management increasingly calls for “marketing accountability” pressuring marketers to produce metrics that document marketing’s ROI.’  Marketing an its effects and results cannot be easily explained to those who have not been exposed to the theory, the process and the choices made along the way.   Marketers are being held to account for their marketing activities.

Marketers need to be able to translate what they have achieved in monetary terms, even if those effects have not yet been realised.  For the simple manager, an increase in profits are one of the only metrics they may understand.   Many managers have asked marketers to come up with a single metric, referred to as a silver metric, such as Return on Investment (ROI),






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 Discounted Cash Flow (DCF),discounted-cash-flowimage source –

Return on Customer (ROC),and profit margins, to show results in a single monetary value.  This is not an effective comparison as there are many facets that require analysis to demonstrate effective marketing.


The key is to develop a number of marketing metrics to demonstrate how effective any market campaign has been, showing a multitude of angles or facets to cross reference and compare with when evaluating results.  Some more effective metrics that are used within business, include behavioural, memory, physical availability, marketing activity and customer profile.

Behavioural metrics capture customer behaviour which include loyalty, motivation, attitudes and emotion.  How likely is a customer to refer this product, how likely will this customer return for a repeat sale.  When considering memory metrics we look at how likely the customer is to recall our brand as being front of mind when faced with an image or text.   Physical availability covers locations where the consumer can access the product, how much shelf space does the product command and at which retail outlets?   It is useful to report on the actual marketing activity undertaken for any particular campaign such as newspaper advertising, social media posts, discounts given etc.  Finally understanding the customer profile including age, gender, physical location, when and what they buy can be valuable information to feedback to the organisation.

The Dashboard!


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The astute manager may ask for a dashboard to be developed (if internal software does not exist) to illustrate the results of the metrics discussed above.  The translation of those metric into a pictorial form is more effective in communicating the information in the form of charts as opposed to data.  R. Meenakshi (et al) wrote about data visualisation. The term dashboard relates to a set of easily understood charts that can, at a glance relay appropriate levels of user information.  Dashboards have created the ability to easily show non-marketing managers what the measured metrics are showing in easily reported form.

The Results

Having successfully delivered the information in a tangible format to your management team, the marketer would have demonstrated how marketing activities were undertaken, what information has been gathered and how it can be used for future campaigns.  Demonstrating a clear understanding of consumer behaviour, identifying trends and highlighting opportunities for growth would empower the senior management team to commit future funds to marketing, as its existence is not a luxury, a department to wind down in tough times, but a necessary function of a business to survive.

Philip Hunter – Student ID 800624597


Volume 40, Issue 1, January 2011, Pages 139–148

Business-to-Business Marketing in the BRIC Countries

doi:10.1016/j.procs.2015.08.036 – Procedia Computer Science

Volume 58, 2015, Pages 371-379

Second International Symposium on Computer Vision and the Internet (VisionNet’15)

Ambler, T, Roberts, JH (2008). Assessing marketing performance: Don’t settle for a silver metric  Journal of Marketing Management, 24 (7/8), 733-750.



Distribution Unpacked..

Philip Hunter – Student ID 800624597


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How to get distribution right.

The ultimate goal of any business is to get its product to the right place at the right price for the right person to commit to a sale from creating value in the purchase. Kozlenkova 2015 wrote ‘the real value is assessed when customers decide whether to buy a product’

How is this done?

A Supply chain must be established to connect the manufacturer to the consumer. Supply chains can consist of other business partners (batteries/screens for laptops) that supply components that make up a product.

Distribution channels are created to bring the product or service from the manufacturer to the consumer.  Some manufacturers (Dell, Apple, Nespresso) choose an option to (either exclusively or in parallel to other channels), supply direct to the consumer.  This can be a successful strategy providing that the manufacturer is set up to receive and dispatch those orders from consumers without delay or disruption. Consumers receive discounts by buying direct, and manufacturers save costs of engaging a third party to ‘peddle their wares’.

But what other options are available to manufacturers?  Surely when you are not set up to sell direct to the public, there are others ways.  Channels are created by manufacturers utilising a third party to link the source to the sale.  Retail outlets are one example where store owners either purchase SKU’s on account or on loan until they are sold.


Since the 1900’s corner stores were the start of the retail trend.  They sold a selection of products in one place.   Consisting of a small store, they were established(and still are) in a convenient central location within in a community; designed to make the shopping experience more convenient by bringing  multiple products into one place. The corner store concept has developed with iterations over the years into the large shopping centres of today containing hundreds of speciality and department stores, designed to encourage us to spend.


Iacobucci 2015 wrote ‘franchising is a unique format of multisite expansion, a means to quasi-integrate’.  The concept behind franchising is forming a network of business units that provide a product or service under license from a proven business model.   Standards and branding are set by the franchisor by establishing and following systems.  Franchisees buy in with a fee and are supporting by an proven business model and branding, whilst the consumer is provided standard levels of service and product.


Successful examples of franchises in Australia include , Jim’s GroupJames and Zarraffas.









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The internet has definitely changed the way we shop.  According to Iacobucci 2015’Retail sales online are about $145 billion, growing about 10% a year, but that’s still only 4% of the total retail sales.  The internet has become the most convenient way (for those with computer access) to browse a supplier’s range prior to purchase.  The potential consumer can review attributes of the product from a distance, engage in online comparisons and review potential cost, all before entering a store.  This gives the consumer more buy in once they have become familiar with a certain brand or product and are more likely to commit to a purchase.

The internet has a long way to go before it becomes a real contender in retail when considering its low market share.

Another interesting debate about retail is the Sales Force versus product success.  A retailer will often cite sales as a product of the sales personnel and sales techniques/customer engagement, whilst the manufacturer will argue that the consumer came to the retail outlet because of their product not the the service.

How marketers Push and Pull sales 

Manufacturers can pull sales figure up by engaging in marketing communications to encourage sales.   Promotions including discounts, samples and loyalty points pull consumers toward a sale.  Pushing products to the marketplace involves strategies including employing sales staff, quantity discounts and sales incentives to channel partners.

What happens when larger entities disagree with the little guy?

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It should be noted that not all parties agree in approaches to marketing, advertising may be requested to be changed, images not favoured or packaging requested to be updated.  Depending on who the larger party is can sway the outcome.  If a multi national manufacturer requests the boutique reseller to change its layouts, who is going to argue?  The opposite can be considered when reviewing a large retail chain who has been ask to provide more shelf space by the small time manufacturer.  Power must be a valid consideration when making or receiving requests, and communication is key to ensuring all parties feel valued in the transaction.

So much to consider, but master this delicate framework with effective decisions and regular feedback from all stakeholders, and your business will never look back.




Did Ford get it wrong?

Philip Hunter.

Student ID Number 800624597

The Long Awaited Ford Mustang

Ford Australia announced to the public in August 2013 that it would be releasing a right hand drive version of the legendary Ford Mustang to the Australian and New Zealand Marketplace.

In 2015, Ford worldwide had produced 76,124 Mustangs in the first half of the year, securing their pole position as the most successful selling sports car world wide.  Allocations for right hand drive models were initially split across the UK, Australia and New Zealand.  Orders had topped over 3000 by sept 2015 in Australia, sending delivery dates out into 2017.  The UK market had committed to 2000 vehicles.

Ford’s marketing strategy appears to have worked well, targeting potential customers to commit to a purchase by taking orders for the vehicles prior to them being released, even prior to the pricing being confirmed.  Indications in 2015 were that “The Ford Mustang is priced from $44,990 to $63,990 plus on-road costs in Australia.”

With orders for right hand vehicles in excess of 5,500 vehicles, Ford underestimated how long these vehicles would take to produce, yet kept taking orders?

Marketing success or failure?

The outcomes of such a successful pre-purchase campaign, that included taking orders and deposits from customers, then failing to deliver, has surely disappointed many of its customers?


For the customers that had been lured into being part of the brand’s new product, the wait was an exciting time.  Those first on the wait list started to receive their vehicles, and due to the failure of Ford to correctly anticipate the demand became the proud owners of a vehicle that was worth much more than they purchased it for.

Ford have succeeded in covering their bases for segmentation during their marketing campaign of the Mustang.  If we look at the Vals approach to lifestyle values segments, it appears that the product appeals to all three of the motivations.  Ideals people with their appetite for new technology, the achievement consumers, who buy products demonstrating their success and the self expressionists who are driven by risk taking. Ford have successfully appealed to both those thrill seeking Aussies of all ages with disposable income, who don’t mind a thumping V8 regardless of the fuel consumption, and the fuel conscious individuals who prefer the 4 cylinder turbo charged version, the car delivers.


Other customers not so connected to the vehicle after deliver took advantage of their new appreciating asset and on-sold the vehicles to other more loyal buyers, who were willing to pay more than Ford were selling them for.  Surely lost revenues from Ford’s intention to ‘keep the pricing competitive’ have backfired, losing millions in revenue?  Whilst this isn’t a failure in segmentation, targeting or positioning, it is a serious flaw in the 4 p’s when we consider vehicles being sold for up to 50% profit.  Their (Ford) promotional approach to pricing appears to have made the vehicle too affordable, losing some of the magic.  It appears mistakes were made during the competitive analysis when comparing other manufacturers placement of price versus value.

There is little comparative competition due to Holden not committing to selling the Camaro in Australia due as Holden and Chevrolet “does not forecast enough volume potential from markets including Australia, the UK and South Africa to support the investment in factory RHD Camaro production”.  Nevertheless Ford have priced too low, not kept up with supply leaving many customers disappointed post commitment and pre-delivery, and lost revenue.

Too little to late?

To keep up with the ongoing orders of the Mustang, Ford have diverted more vehicles to the Australian market for 2017, but will it be enough?  Will the fans keep coming, or will customer interest waiver once Holden return serve with their rumoured response, offering a wildly improved version of the Commodore SS for those who don’t want to wait any longer?  Time will tell…