Amount spent on
marketing promotions in 2004, according to Promotion Marketing
advertising is wasted. I just don’t know which half.”
Countless other executives have felt the same as John Wanamaker, the
19th century department store magnate and marketing
pioneer who uttered those words many decades ago.
For the most part, though, marketing
has remained perhaps one of the only corporate departments that does
not use the kind of metrics that are meaningful to
bottom-line-oriented people like chief executive officers or chief
financial officers. But that indifference to metrics is becoming a
thing of the past. Experts from Wharton, McKinsey & Company and
the Marketing Science Institute (MSI) say that the search for better
marketing metrics is underway throughout Corporate America.
“Historically, when the CEO wanted
to know the ROI of marketing spending, the marketing people would
say, ‘If you spend more, your market share will go up.’ But the
marketing people haven’t done a great job quantifying that,”
says Wharton marketing professor David
Reibstein, a former executive director of MSI.
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