Yes it’s testing times.
Or should I say from now on it will be testing times...where
marketing departments fight for investment. I predict these conditions will
have a fundamental affect on how marketing investment is planned and executed
for many years. Those of us who have long awaited the strict accountability of
marketing are rejoicing. Long live difficult conditions if it means we have
finally come to our senses!
I saw this article on the DMA website earlier today...I
think it’s worth a read.
Professional bodies unite to promote integrated approach to
marketing and finance
Three leading professional bodies - the Chartered Institute of Management
Accountants, the Direct Marketing Association and The Chartered Institute of
Marketing - have joined forces to issue an urgent call for better working
practices between finance and marketing via the launch this week of their joint
report Return on Ideas: Better results from finance and marketing working
together.
The report showcases the ‘Infinity Model’, a groundbreaking new framework which
adds value to organisations by demonstrating the impact of marketing on the
bottom line
Organisations around the world are in the middle of a
once-in-a-lifetime marketing upheaval. Businesses can grasp how important
marketing is but the temptation is to slash budgets in a downturn. All three
bodies are concerned that many companies do not have the right blend of
marketing and accountancy acumen to either establish the value of their
marketing campaigns or account to shareholders on the effectiveness of
marketing spend or investment. Hence it is vital that marketing and finance
work jointly to demonstrate the real value of marketing to the bottom line.
Over 100 organisations were surveyed by Return on Ideas
author Dr Robert Shaw in order to find out what works and what doesn’t when it
comes to marketers working with their finance business partners to create and
demonstrate their financial worth. Dr Shaw also researched current measurement
theories that are commonly used by accounting firms, consultants and marketing
service firms. The essence of this candid research has led to the creation of
the ‘Infinity Model’ – an innovative framework designed to help marketers
create greater sustainable value with input from their colleagues in finance.
Dr Robert Shaw says that Return on Ideas will provide
marketers and accountants with a clear means of understanding on another:
“While marketers and finance professionals have sometimes
had a disjointed working relationship, this innovative report and its ‘Infinity
Model’ aim to bridge that gap for any size of organisation that has to market
itself. Imagination, prediction and demonstration are key aspects of the role
of finance and marketing colleagues.
“This report and its practical checklists aim to provide
finance and marketing practitioners with the tools to create greater marketing
efficiency, effectiveness and sustainable value for their organisations.”
Robert Keitch, Director of Media Channel Development &
Environmental Affairs, added:
“Even though marketing is a key driver of sales, marketers
and accountants have traditionally spoken in very different languages, often
resulting in a breakdown in understanding. The need for marketers to explain
the value of marketing and the need for accountants to measure the value of
marketing is vital to accountability. This report will help business understand
the nature of problem and make the necessary changes.”
