Volume 20, Number 4 Article by Avinash G Mulky December, 2008
Enhancing Marketing Performance:Discussion :
Marketing is increasingly being called upon to justify its existence by enhancing marketing performance and firms are under pressure to measure marketing performance systematically and also identify the factors which impact performance. In an academic perspective on the subject, Prof Avinash Mulky of IIMB points out the four areas relevant to the enhancing of marketing performance measuring marketing performance; the marketing sales interface; managing the sales organisation and sales technology utilisation.
In this context IIMB Mangement Review invited a panel of experts to discuss the practical implications of the themes highlighted by the academic perspectives note.
Speaking of the marketing challenges faced by the emerging Indian MNC, Achal Raghavan, Head International Operations, Sundram Fasteners, said that with both customers and suppliers proliferating their footprints globally, the relationship has to be managed globally and yet locally. Developing unified metrics to measure marketing effectiveness in this constantly changing map is a challenge. Suppliers must understand the internal dynamics of the customer's organisation, have uniform commercial policies, and provide a solution that makes the transition from 'sprice's to 'svalue's that the customer can measure. Going forward, in fulfilling its expanded role, the marketing function must acquire additional competencies and deal with risk and ambiguity.
While marketing and sales have different roles and responsibilities, it is important to align the two functions, said Bejoy George, Chief Marketing Officer, QuEST Global. An end to end, common process and an integrated measurement process must be implemented, where both functions agree on what will be measured and how, and on the incentives for the successful achievement of key result areas. The onus of alignment is on the marketing function and marketing must identify new prospects, generate opportunities and nurture leads.
The two parts of the marketing job, according to Y L R Moorthi, Professor, Marketing, IIM Bangalore, are generating exciting new ideas to be connected with the customer and arriving at a one line revenue model. Other than measuring the efficacy of these two aspects, the metrics of marketing performance would include the ability to predict redefinitions or the sudden changes in the market, ability to take products to market better and faster, and the extent and rapidity of the recovery of product development expense.
In a scenario where consumers are deluged by advertising messages promoting an ever increasing choice of products and services,marketers must move from the outbound marketing to inbound customer marketing ICM said Dr Wolfgang Messner,Director,Capgemini Consulting India Private Limited.Customers are more likely to react positively to an offering if they voluntarily initiate contact and ICM represents an opportunity for companies to target such customers.ICM may be deployed in distinct phases like developing deeper insights into customer needs and behaviour through appropriate segmentation and predictive analysis tools;enabling real time interactions that will capture the most up to date customer information;rolling out ICM across inbound channels ensuring a consistent customer experience across all touch points. An effective ICM deployment will require a change in organisational mindset at operational levels as ICM affects the very core of a company's CRM strategy.
The panel discussed associated issues such as the ambiguities of the marketing role, the challenges in arriving at suitable marketing metrics and the role of technology in measuring marketing performance.
Reprint No 08406b
