How to demonstrate marketing’s profitability

Marketing’s credibility suffers from beliefs that its profitability cannot be calculated. Generalising from success stories and relying on `marketing metrics’ such as awareness, preference or satisfaction often fail to deliver insights with the financial perspective required in the boardroom.

How to Demonstrate Marketing's Profitability

Robert ShawCass Business School, City of London

When it comes to deciding where to spend your marketing budget, and how much is needed in total, blind faith seems to win over reason. This unsatisfactory state of affairs causes strong disagreements over such diverse issues as agency remuneration, media-neutral planning, production costs, call-centre staffing, sales promotion versus everyday low prices, and sales-bonus schemes.

In my work with marketing and finance professionals I have found methods and practices that provide practical solutions to the problem of marketing profitability and this article introduces them.

UNCLEAR OBJECTIVES AND...

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