Notes for Ebm: Evidence-Based Marketing

What is ROMI?

1. Who did I say was the most important stakeholder in a company?

Shareholder!

2. I argued that marketing has one simple goal. What is it?

To create a sustainable competitive advantage for an organization. Period.

3. Godin identifies eight traits of a good story. What are they?

A great story is true.

Great stories make a promise.

Great stories are trusted.

Great stories are subtle.

Great stories happen fast.

Great stories don’t appeal to logic, but they often appeal to our senses.

Great stories are targeted. Great stories agree with our world view.

Great stories don’t contradict themselves

4. How do you measure sustainable competitive advantage?

Loyalty Advocacy Co-operation

5. I argued that competitive advantage is attained through the measurement of three types of behavior that are linked to value generations. What are the three behaviors?

Resource Allocation (people)

Risk Mitigation

Enhancing Probability of success

6. What are leading and lagging indicators? How do they connect to attitudes and behaviors?

Leading indicators provide guidance to the future. They allow you to anticipate what may happen in the future. They provide predictive value.

Lagging indicators are the rear-view mirror. They tell you what has already happened. They provide historical intelligence.

7. In Decision-Driven Marketing, the authors argue that to break down barriers marketers must focus on three areas. These are:

conduct a decision X-ray-diagnoses how the decision is currently made

perform a decision reset- redesigning a decision process to improve its effectiveness

and implement the new process- evaluating the process steps and decision roles and assessing the allocation outcome

8. According to Marketo- What are the five stages of marketing accountability?

1) Denial- “Marketing is an art, the results will come, trust me!”

2) Fear- “What if my marketing activities don’t affect bottom line? Will I lose my job?

3) Confusion- “I know I should measure marketing results, but I dont know how”

4) Self Promotion- “Look at all these charts and graphs I have made”

5) Accountability- “Revenue starts with marketing”

9. According to Marketo – what are the three things you should do to planning for marketing ROI?

1. Establish Goals - Establishing targets and ROI estimates up-front

2. Design Measurable Program - Designing programs to be measurable

3. Focus on Marketing Improvement - Focusing on the decisions that will improve marketing

10. According to Marketo - where are the five areas where metrics go wrong?

• Vanity metrics Too often, marketers rely on “feel good” measurements to justify their marketing spend

• Measuring what is easy When it is difficult to measure revenue and profit, marketers often end up using metrics that stand in for those numbers

• Focusing on quantity, not quality

• Activity, not results

• Efficiency instead of effectiveness

DO NOT USE COST METRICS! because they frame marketing as a cost center

11. In the study I conducted of marketing professionals and presented in class - what was the number one skill that marketers look for today in new graduates?

LISTENING

12. In the article Metrics that Muddle, the authors I identified five metrics. Which one is NOT one of these metrics:

1. Market Share

2. Value of a ‘Like’

3. Return on Investment

4. Net Promoter Score

5. Customer Lifetime Value

13. According to Sargut and McGrath - What is complexity vs. complicated? Explain the key areas for mitigating risk.

Complicated systems have many moving parts, but they operate in patterned ways.

Complex systems, by contrast, are imbued with features that may operate in patterned ways but whose interactions are continually changing.

Better risk mitigation:

1. Limit or even eliminate the need for accurate predictions - The world is unpredictable.

2. Use decoupling and redundancy - Sometimes elements of a complex system can be separated from one another to decrease the systemic consequences if something goes wrong.

3. Draw on storytelling and counterfactuals - making sure that people view unlikely but potentially catastrophic future events as real.

4. Triangulate - Combining “soft” but fl exible storytelling techniques with “hard” but rigid quantitative analyses can be an extremely powerful way to make sense of complex systems

14. McAfee and Brynjolfsson talk about how the big three Vs have triggered a revolution. Explain how this will impacts you as a marketer.

Problems & Questions

1. Please apply Spradline’s Problem Definition process.

1. Establish the need for a solution - the