@Revolution:Global Business News

New Economy, Leadership, Entrepreneurship, Management, Global Business

Optimal Marketing

Posted by iBlog on August 9, 2007

To build a leading brand, you must invest your marketing funds wisely. For global consumer-products companies, those investment decisions are especially difficult.

For example, how do you compare the potential ROI from marketing pain relievers in Germany versus shampoo in the UK? And even if you succeed in identifying the highest ROI opportunities, how do you ensure they get the lion’s share of your global marketing budget?

Do what Samsung did, say Corstjens and Merrihue. With $1 billion to spend annually on marketing worldwide, the company rigorously analyzed data to identify category/country configurations promising the best returns. It then reallocated funds from low-ROI configurations to high-ROI ones. And it overcame managers’ resistance to reallocations by making a compelling case for change and adjusting managers’ performance expectations to align with their units’ projected profit potential.

Read the full article in Harvard Business Online

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