Reach the Right Audience — Sherburne
When asked about their approach to growing their businesses in today’s marketing environment, the top responses were:
Consumer Targeted Communication (12 percent)
Customer Identification/Segmentation (12 percent)
Identify/Satisfy Consumer Needs (12 percent)
Strengthen Communication to Consumers (12 percent)
In order to accomplish this, respondents identified a number of channels; 23 percent specified direct mail as the most important channel, with 15 percent identifying print (magazines/newspapers). Although 58 percent of respondents indicated they used e-mail, only 10 percent identified e-mail as the most effective channel. Eighty percent of respondents indicated they choose marketing channels based on past results, while 65 percent selected best projected ROI (multiple answers allowed).
Bottom Line on Budgets
Respondents reported that their marketing budgets comprise an average of 6.14 percent of corporate revenues, but 40 percent report that their marketing budget is not sufficient to achieve growth objectives. Besides complaining about inadequate marketing budgets, 40 percent of the respondents identified elusive ROI as a significant challenge. Interestingly, 50 percent indicated that pressure to produce short-term results frequently requires them to modify long-term growth strategies.
And, finally, when respondents were asked about the one thing that external agencies could do to help them achieve their growth goals (although 33 percent chose not to answer or didn’t know), 14 percent responded Reporting/Analysis/Recommendations and another 14 percent responded Understand Business/Industry/Products/Client’s Needs. Only 2 percent responded with Reasonable Pricing.
So what does all of this mean? Marketers are making it clear that external agencies (increasingly, that’s you!) need to have a good understanding of their business and that marketers need help in quantifying marketing ROI. Reading between the lines, quantifying ROI would help marketers potentially gain larger marketing budgets, since their management is likely to be very results driven. For many years, marketing has been a nebulous spend with which many CFOs are uncomfortable.