Technology in Measuring Promotional Performance

Details

Case Code : CLMC-011
Publication date : 2005
Subject : Marketing Communications
Industry : -
Length : 04 Pages
Price : Rs. 100

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Key words:

DHL, Wipro, Xerox, Procter & Gamble, ORG MARG, General Motors, Daimler Chrysler, Six Sigma, Online Contest and Return on Investment (RoI).

Note

1: This caselet is intended for use only in class discussions.
2: More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US $16) per copy.

 

Abstract:

The caselet explores the increasing focus of companies on measuring the effectiveness of their promotional activities. It discusses in detail the steps taken by Wipro, DHL and Xerox to measure the effectiveness of their respective communications campaigns. Finally, the caselet throws light on the importance laid by companies to measure the effectiveness of promotions, due to increasing pressure on margins and accountability to the top management, in terms of the Return on Investment (RoI) on the marketing expenditures.

Issues:   » Significance of Return on Investment (RoI) for measuring promotional effectiveness.   » Importance of using a logo to communicate a company’s image   » Use of Information technology and processes like Six Sigma to measure promotional performance Introduction The quest for operational efficiencies and increased pressure on margins, due to ever-evolving consumer needs and cut-throat competition, has forced even cash-rich multinationals to concentrate on the effectiveness of their promotional spends. Every rupee spent has to be accounted for through proper tools of measurement. Many organizations like Wipro, DHL, Xerox, Procter & Gamble, and Gillette are using different methods to measure the performance of their promotional campaigns.

Wipro, the Indian software giant, decided to re-launch its corporate image by unveiling a new logo, the rainbow flower. The logo was designed to represent what Wipro stood for – a diversified business behemoth (it is in the fields of software, consulting services, consumer care, healthcare, lighting, etc.), through a common visual imagery aimed at creating a lasting impact on the customer’s mind.

Questions for Discussion:

1. ‘The use of measurement techniques for evaluating marketing performance is fast catching up with the companies’. In light of this statement compare the different approaches used by companies like Wipro, DHL, and Xerox, to measure the performance of their promotional activities.

2. Today, top executives are fed up with investing huge sums of money in advertising their products via TV, newspapers, outdoor media, and other channels, due to the ineffective marketing measurement techniques and rising costs of promotions. What do you think the marketers need to do to support their claims in front of the top management to get their advertising budgets approved?