Zero based marketing plan
A balanced set of KPIs drives balanced evaluation.
However, a mix of both may work well for some companies, that is, they undertake a zero-based budget every few years and in between use a more traditional approach. Instead, set up alternative ways of measuring, as follows: Focus instead on consumer behaviors.
However, knowing how marketing is regarded by many in the C-suite — a cost not an investment — and having seen similar trends sweep through business in the past, I think I have some basis for my concern.
And vice versa, too. Among the darker corners of the financial toolbox is zero-based budgeting, a method that asks departments to justify each item of the budget line by line. In my consulting life I have sat through more than 1, marketing plans.
Senior management review the plan and either grant the amount or push back and ask the the team to make changes. Accenture and McKinsey both suggest that marketers fully consider the costs and benefits of their marketing efforts. Create measurable proxies for each longer term KPI Many of the elements that are key to longer term success are hard to measure in the short term.
Zero based budgeting
How to ensure zero-based budgeting supports your marketing strategy It appears that zero-based budgeting is coming to marketing and one hopes, trade expenditure management too! If the KPIs are balanced, then the budget will be balanced, as will be the plan At engage, we believe in accountable marketing: activities across the marketing and sales arena that create real value and drive brands forward. Zero-based budgeting resurfaced in the news when Unilever CEO Paul Polman announced it would zero-base the marketing budget in a talk to investors earlier this year. What indicators would you see in the short term if this long-term measure was being supported? You can take all the money going into antiquated channels like print and radio and move them to more measurable and cheaper channels to are shown industry wide to deliver more reach now for less money. The Hybrid Approach To realize even more efficiencies without fully diving into zero-based budgeting, you can combine the two methods above; select some departments or divisions to undergo zero-basing one year and move onto to other groups in following years, creating a rotational schedule. Avoiding waste The zero-based approach prevents the marketing team from spending their money simply to justify the same allocation next year. Activities which support the brand in the long term, but perhaps have little impact on short term profit, might be ditched in a zero-based budgeting world. From the perspective of clients using it, the challenge to an agency is that it creates more uncertainty as they are not or only partially involved in the budgeting process and so any changes can be a complete surprise. There are also clear dangers. The zero base approach is not a cost cutting method or belt-tightening approach. If the marketing team encounters rigid budgeting perimeters and slow movement of marketing funds to continue supporting a successful campaign, the campaign could be under-funded, resulting in its effectiveness not being fully maximised.
based on 71 review