Marketing Budget ROI & New Initiatives Sample PowerPoint

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Marketing Budget ROI & New Initiatives Sample PowerPoint

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Marketing Budget ROI & New Initiatives Sample PowerPoint showing the presentation for the new scratch budget. It introduces new expenditures and their expected ROI. – PowerPoint PPT presentation

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Title: Marketing Budget ROI & New Initiatives Sample PowerPoint


1
Marketing BudgetROI New Initiatives
  • Sample PowerPoint showing the presentation for
    the new scratch budget. It introduces new
    expenditures and their expected ROI. It was from
    an actual presentation within the company, but
    the company name, products and numbers were
    changed to make it generic enough to share.
  • We were grilled by the CFO during the meeting,
    but we got 100 of what were asking
    forspecifically since we could show the expected
    return for every dollar requested.

2
Marketing Objective Approach
  • Our 2010 objective is to maintain existing
    business, while capturing new accounts to grow
    sales from 50 million to 59 million.
  • Our marketing approach includes
  • Introduce a new product line with associated new
    revenue (Widget)
  • Introduce three major new product releases
    (Widget2, Widget3 and Widget .x)
  • Improve our pricing strategy w/Widget via
    promotions to better penetrate and re-capture
    market share (while protecting existing profits)
  • Increase our width of distribution (add more
    better qualified resellers) and improve our
    reseller recommendation rate (better support,
    leads)
  • Instigate smarter promotions (Ads, events) to
    generate greater ROI. Cut those that do not
    perform
  • Utilize more promotional tools (PR, direct
    response, channel, roadshow, etc.) to generate
    more leadswhile still requiring each program to
    maximize ROI

3
Budget Summary Expense/ROI
  • Channel Marketing recruit new resellers, sell
    more through existing resellers (increase
    recommendation rate). Expense 310k. Return
    4.9 million.
  • Advertising new product announcements, generate
    leads for sales and resellers. Expense 416k
    Return 1.8 million.
  • Promotional PR generate leads, credibility and
    awareness. Expense 244k. Return 2.3 million.
  • Events generate leads, customer, consultant,
    reseller and press meetings. Expense 515.
    Return Negative
  • Customer Reseller Conference customer,
    consultant and reseller support, pre-sell
    on-going releases. Expense 440k. Return Not
    calculated
  • Collateral product catalog, price lists, CDs
    (support material), reseller sales kits, product
    slicks, etc. Expense 619. Return Cost.
    Required to sell the products. Covers 30 of the
    57 different Division products.

4
Integrated Marketing Premises
  • The initiatives ROI is based on much of the
    work done internally. Head cuts force us to use
    external agencies, often increasing expenses 5 to
    10x.
  • This is an integrated campaign. Each initiative
    is designed to work in tandem with the others.
    For example
  • If we recruit new resellers, but cant provide
    leads (by cutting ads), our expected ROI/reseller
    drops.
  • PR will actually drive our sales more than
    advertising. However, press coverage is often
    highly influenced by ad placement (particularly
    with smaller pubs). PR creates the overall
    interest, with Ads differenting the product and
    showing where to buy (leads).
  • It is expected that we will be smarter with our
    ongoing campaigns. Past examples changed ad from
    brand identity to direct response
    formatincreased leads 35x. Utilitized Web for
    resellers, decreased pricing list print postage
    expense
  • ROI on leads is contingent on changing our
    internal processes and behavior (being addressed
    now). Better quality better tracking better
    follow-up greater ROI
  • Total new product revenue and ROI equals
    greater than the expected 9 million to meet this
    years budget. The additional ROI represents
    total revenue as a result of the specific
    campaign, of which the associated sales revenue
    may not close within the calendar year.

5
Channel Marketing
  • Objectives Recruit new resellers (some have
    defected, others cover new verticals), improve
    existing recommendation rate, joint promotions,
    leads. The proposed campaign would bring us 49
    new resellers (VARs) and 5 million in new
    revenue (over a 1 year period, with additional
    on-going revenue). Total expense, with a channel
    director (150k fully burdened) 310k.
  • Promotions
  • Advertising
  • 4 Ads VARBusiness/Other (3k each (designed
    internally)) 12k
  • ROI 10 qualified responses / ad 40
    responses. 25 conversion 10 new resellers x
    100k/reseller/1st year 1 million
  • 4 Carddecks VAR/System Int Specific (2.5k)
    10k
  • ROI 4 qualified responses/deck 16 responses.
    25 conversion 4 new resellers x
    100k/reseller/1st year 400k

6
Channel Marketing
  • Promotions
  • Direct Response
  • 2,000 targeted locations 8k
  • ROI 2,000 x 5 response 100 leads x 10
    conversion 10 resellers x 100k/reseller/1st
    year 1 million
  • Reseller database list - 5k ROI Needed to run
    campaign
  • Events
  • Reseller Roadshow (10 cities, 80k less
    contribution) - 25k
  • ROI 10 cities x 25 resellers/each x 10
    conversion 25 resellers x 100k 2.5 million
  • Reseller Collateral ((brochure, binders) (2,000 x
    50/ea)) - 100k
  • ROI Necessary to run the program.

7
Promotional PR
  • Objective To generate leads, credibility, and
    awareness. The recommend PR activity, at program
    cost of 144k, plus 100k weighted salary, would
    total 244k and would generate more than 2.3
    million.
  • Items
  • Clipping Service (300/mo 1.95/Clip/100) - 10k
  • Potential Acme add-on discount
  • ROI Cost needed to determine ROI response for
    all PR
  • External Agency (3 x 20k (Trade Show, Conf,
    Tour)) - 60k. ROI Augment internal capability.
    Return is associated with Press hit ROI.
  • Reviewers Guide - 10k ROI Increases our chance
    of a positive reviewmaximizing PR effectiveness
  • Press Tour Widget (introduction, position) -
    35k
  • 3 Cities, at least 3 Locations/City
  • ROI 3 cities x 3 editors each 9 articles x
    2,500/hit (MQQ value) 22.5k. The short-term
    ROI is a related article. The real ROI is the
    increased personal relationship, which increases
    our hits on an ongoing basis, since we got on the
    radar screen of the top editors.

8
Promotional PR
  • Items
  • Press Release news wire services (each x 550
    20k). ROI The Press Releases are required to
    help generate hits
  • Press Kits (1,000 x 4, Plus 5k x 3 Reprints) -
    19k ROI Cost. Materials required to run PR
    campaigns
  • The budget only accounts for the cost and ROI for
    each expensewhich stands on its own. However,
    the overall expense also has a long and
    short-term residual effect since it helps ensure
    reviews, referencing, and Web hits.

9
Promotional PR
  • ROI Analysis (how to measure PR effectiveness)
  • The promotional goal is to maximize the budget to
    get the greatest exposure ( of impressions) and
    ROI for leads. Choose medium. To reduce ads, we
    use PR, which is 15 times more believable, yet
    1/7th the cost. Ads help us get PR coverage and
    give phone for direct response.

Compared to Sample Ad
Sample Press hit
- A positive press hit has a greater value than
advertisement. We use the ad replacement cost
to calculate ROI in terms of placement saving
cost (what it would cost us to get the same
impression count via advertising). - ROI for
press is calculated with a formula called the
Media Quality Quotient analysis.
10
Advertising
  • Objective We have 1 new product and 2 new major
    release launches in 2003. We expect to generate
    new sales via the new product and releases, plus
    penetrate 6 new vertical markets. Total expense
    is 416k, our ROI is 1.8 million.
  • 6 different verticals, 1 best pub per vertical,
    6 placements each 36 placements
  • 4 different horizontal (security) pubs x 6
    placements each 24 placements.
  • 6k each (with graphics/placement). Each launch
    campaign will run for 90 days.

59 sales of Widget3 equal 12.6k/sale. Widget2
is much greater.
11
Events
  • Objective Generate leads, setup customer,
    consultant, reseller and press meetings. Expense
    451. Return NEGATIVE
  • Our primary show is ASIS. Additional events
    include Trade Show 1, Show 2, Show 3, Show 4.
  • Our ROI is based on Trade Show 1 (where we have
    the most accurate data) and the ratio is applied
    to all.
  • In 2001 we generated 600 leads at Tradeshow 1. 75
    were deemed quality. We cannot attribute a
    single sale to these leads.
  • Assuming we put the tracking systems in place
    (current initiative outlined in appendix), and
    assuming we use the same expected leads and close
    ratio as the ad campaign (conservative), we have
    the following ROI

12
Events Discussion
  • Based on current data, should we do Trade Show 1?
  • Weve been at Trade Show 1 for 13 consecutive
    years. However, ROI kills sacred cows (sacred
    cows make the best burgers)
  • Expected changes for Trade Show 1 2010, with
    refinements for 2011
  • MUCH more aggressive at getting leads show and
    daily goals
  • Microphone stations to draw more attention to the
    demos
  • Promotions to pull people to the booth (more
    traffic)
  • Pre Post Day team meetings with recognition for
    those that pull in the most leads
  • A clear understanding of what we need to get out
    of the show (LEADS first, everything else second)
  • A new lead qualification form (A, B, C) with
    real qualifying questions ( doors/readers,
    employees, time to decide, etc.)
  • Everybody works the booth to cut expense (no ½
    days)
  • New lead tracking process (template w/managerial
    information for follow-up) internal buy-in
  • Incentive plan with Sr. MarCom Mgr based on
    leads
  • Reduce costs smaller size, consolidation

13
Events Expectations
  • Following are the expectations for Trade Show 1
    2010
  • Increase the leads from 600 to 1000
  • Microphones, promos, much more assertive and
    qualifying
  • Improve the qualification process, pass on tire
    kickers and seek out those most interested
  • Even still, with these ratios, the lead ROI is
    the lowest of all campaigns
  • We have to also track the value of meetings,
    press, competitive intelligence
  • But, we must pull a better ROI or re-consider our
    ongoing participation
  • The concept of noticeable by absents can be
    made up by re-allocating the money to more
    profitable campaigns, then setting up sales
    meetings with key accounts during the show,
    without the high cost of the booth
  • May consider off show floor event

14
Customer Conference
  • Objective Customer, consultant and reseller
    confidence support, pre-sell on-going releases.
    Expense 320k. Return
  • I do not have enough data to calculate an ROI for
    this event.

15
Research Risk Reduction
  • Objective Reduce the risk from missing the mark
    with our product lines. Total cost is 78k. ROI
    The reduction in loss sales resulting from not
    identifying, prioritizing and developing the
    correct features (from Win/Loss Reports).
    Microsoft, HP and other high-tech research ratio
    is 1 of sales. Ours is 0. It will be 01 after
    we add this expense.
  • Activity / Investment
  • Analyst Reports (specific category information)
  • Two at 5k each
  • Usability Study Widget software interface 10k
  • Focus Groups (identify key issues to test)
  • 1 set external (3 locations) 20k
  • 2 sets Division 6k
  • Surveys (Prioritize features Roadmap) 25k
  • 1 survey set for Widget 1/Widget 2/Widget
    3/Hardware/Reseller
  • Consulting (survey setup, Business Intelligence
    setup) 3k

16
Brochures Catalogs
  • Objective To provide the appropriate collateral
    to position and sell our products. Currently our
    collateral looks very old (grey marble 70s
    style), does not reflect the Acme brand, is not
    translated for International sales, has incorrect
    data/positioning, Cost 619k (includes annual
    re-prints, design cost)
  • A large portion of our on-going budget is
    re-prints, much like the packaging cost of goods.
  • The budget only includes re-prints or re-do (new
    product revisions) for 24 of the 37 Division
    products (avg cost 16k per 20,000 print run (avg
    /year), plus 1,500 - 6,000 production/art/desig
    n cost)
  • All re-prints and new pieces reflect additional
    design/production cost, since they will require
    new design work that uses the Acme brand

17
Industry Ratios Marketing Only
Source Software Success, 3rd Edition, Software
Industry Operating Ratios. Based on 122 surveys
for the 1st eight months of 2001. Data is apx. 1
year old.
  • Acme / Division Marketing Expense Ratio
  • 2009-10
  • 2011
  • We will use 9 as an acceptable ratio (we have
    over 25 million, but most revenue comes from
    resellers). Even with the new initiatives, we
    are still below the industry ratios, based on all
    of the data we could compile.

18
New 2003 Revisions to Budget
  • Play smarter
  • Do something different maintaining ROI
  • New Initiatives
  • Promotional PR
  • Research (Risk Aversion)
  • Channel Marketing Reseller Programs
  • Webmaster Online Marketing
  • Vertical Leads
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