Wednesday, April 15, 2015

Marketing must deliver on finance terms - return on investment!

The first thing to remember about financial managers is that they generally act in shareholders’ best interests.  This doesn’t mean that there aren’t exceptions – those that embezzle or put their own self-interest ahead of the shareholders.  But by and large this is a group of people that tend to be rigorously honest in their reporting and in their seeking of the financial truth.  When we use the term “acting in the shareholders’ best interest” we are referring to a creed, a manifesto, a modus operandi with a litmus test that is predisposed to finding problems.  The very nature of a financial or numbers driven person is to find the exception to the data – the piece of data that doesn’t fit the pattern or puzzle. 


What does this mean for marketers?  Most marketing programs lack a significant piece of data that the financial manager is keenly interested in – the identifiable “returns” associated with the “investment” of the marketing program.  This makes them suspicious and leery of marketing in general, as it doesn’t provide them naturally with the data they would like to see to perform their essential function as a detective or whistle-blower.  They can see your wild successes as complete wastes of money.  You must understand their language and report data that makes them comfortable – not necessarily the data you have to work with in the marketing world.

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