Embed Size (px)
DESCRIPTION
Connecting finance & marketing is really about using financial concepts to understanding how marketing contributes to business value. In other words, establishing and quantifying the relationships between Marketing activities and Financial outcomes.
Citation preview
CONNECTING FINANCE & MARKETING
www.bdo.co.nz
2. CRITICAL LEVERSInvestment levels: Determined and allocated to areas of highest returns
Timelines: Expected period for return defined
Measure: Savings as well as spending
Partnership relationship: Between Finance and Marketing
Common: Language and systems across functions
Appropriate metrics: Across each marketing channel
Financial risk: Identify and mitigate in marketing plans
Minimise: The amount of non-consumer facing dollars
Brand & Marketing
Audit
Identifing the challenges ▶ Measurement of marketing effectiveness non-existent or insufficient
▶ Independent functional silos
▶ Culture of distrust among functions
▶ Change is slow and disjointed
▶ Purpose of marketing misunderstood across the enterprise
▶ Cost of marketing rather than investment debated among executives
▶ Financial, short-term KPI’s tracked only
▶ Brand building investments not tracked or measured
▶ Budget for marketing dictated by finance
▶ Objectives between functions differ without integration
Common root causes ▶ Lack understanding of how brands contribute to business success
▶ Different value propositions prevail
▶ Different business vocabularies used
▶ Decisions made on what is measureable rather than most effective
▶ Financial measures imposed above all else
▶ Different systems used with non-existent or limited integration
1. WHY THE DISCONNECTION?CFOs have traditionally held significant doubt towards the value-add from marketing, which largely stems from historical views that marketing isn’t scientific, hard to measure and more cost than investment. Though ROI isn’t easy to calculate for marketing, particularly brand building activities, it can be done! Start by:
3. EXPECTED OUTCOMES ▶ Brand measurement done on a consistent basis rather than point-in-time, making fast changing trends visible
▶ Maximise return on marketing investment to customer and shareholder
▶ Financial and non-financial KPI’s tracked to highlight key sources of brand value
▶ Detailed understanding of how brand investments: Impact the business and Link with financial consequences
▶ Marketing investment decisions which factor in both short-term and long-term impacts
NOTE: BDO’s approach is a Brand & Marketing Audit, which will guide a business towards a more integrated approach between Marketing and Finance activities, focused on collaboration, integrated planning, agreed priorities and outcome transparency.
For further information please contact: Tim Gacsal, Associate, BDO Advisory Services, [email protected]
