Leveraging Marketing Value Chain can help create a common cause for long-term growth investment

New Ideas in MarketingEssential news for marketers, summarised by YouGov
December 05, 2019, 12:43 PM UTC

This five-step quantifying method balances a wide range of short and long-term growth investments.

Marketing Value Chain is a five-step framework that connects every possible marketing action and investment to firm value and financial performance. This piece argues that marketers should use this method to create a common economic purpose for long-term growth investment as there is “no A/B test” for big strategies like brand building.

Once all senior stakeholders and management agree on the metrics, marketers can document the core assumptions behind their growth strategy. It would help brands develop financially valid KPI, credible business cases and scenario planning tools to direct investments, budgets and resource allocation.

The author says that documenting and quantifying growth assumptions provides scientific discipline to help the analytics team to describe growth patterns. It can make measurement models more accurate, predictive and prescriptive.

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