Category: Marketing Metrics
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Financial Information And Stock Prices
For the next few weeks I’ll discuss Lev and Gu’s new book on the problems of financial accounting, The End of Accounting. Here the authors discuss financial information and stock prices. Basically, the relevance of accounting information to investment decisions. Financial Information And Stock Prices: Little Connection This book sets out the case that financial accounting…
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What Is Wrong With This CLV Formula?
Peter Fader and Bruce Hardie are experts in understanding the value of customer relationships. They have offered advice on problems with CLV calculations, especially those taught in MBA programs. They ask: “What’s Wrong With This CLV Formula?” Five Issues They outline five issues. Many of these are things to bear in mind that we might…
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The WAITA Model — How To Decide Upon Marketing Metrics
I recently published a short piece for WARC Best Practice on “How to set marketing metrics effectively”. The basic idea behind the piece is an explanation of how to decide upon what marketing metrics to use. This work introduces a new acronym that I’ve produced called the WAITA model. Hopefully, this is easy to remember. Why call…
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The History of Reporting on Brands
Roger Sinclair shows the value of experience when he surveys the history of reporting on brands. (Roger made a large number of contributions to the field of marketing accountability. I had the honor of presenting Roger’s family with the Blair Award for Marketing Accountability at the 2019 MASB Summit see here). When Firm’s Reported Their Brands…
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Understanding Brand Valuation
Marc Fischer explains common methods of brand valuation. His work is useful in understanding brand valuation. Different Methods Of Brand Valuation One of the problems he highlights is that there are so many methods. Different companies have their own proprietary valuation systems. He groups these into three main approaches; a cost-based approach, a market-based approach, and an…
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The Marketing Finance Partnership
Jim Meier, (an executive at MillerCoors), is an expert on getting marketing and finance to work together. Let’s call this the marketing finance partnership. He has written a fascinating chapter on the problems of doing this. Perceptions Of Marketing The portrayal of marketers through the eyes of finance people is amusing. Still, it isn’t pretty.…
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CLV In The CPG Industry
V Kumar (the editor of the Journal of Marketing) and student Sarang Sunder have undertaken a review of the use, and potential use, of Customer Lifetime Value, CLV in the CPG industry. (CPG being consumer packaged goods, think P&G, General Mills). Challenges For CPG Marketers The authors talk about the problems that CPG marketers face…
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The Long-Term Impact Of Advertising
One of marketing’s greatest challenges is that its benefits are often long-term. Spend now, gain later. What is the long-term impact of advertising? Measuring The Long-Term Impact Of Advertising Long-term benefits can be very tough to measure. This is especially true when lots of other activity is happening at the same time. For an analogy…
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A Common Marketing Language
A major problem in marketing is that one often has only a general idea of what another marketer is speaking about. “Unfortunately, marketing still does not have that commonality of terminology” (Farris, Reibstein, and Scheller, 2016, page 46). We need a common marketing language. We Lack Shared Meanings A marketer will talk of loyalty and…
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Controlling Your Political Brand
One of the key challenges for any party or politician is controlling your political brand. Case studies are a useful tool. They show that has been done in the past. Political Versus Administrative Tension often arises between the political and administrative aspects of government in a democracy. Elected politicians set the strategy. This should (ideally) reflect…
