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Spend Efficiency
and Effectiveness
Marketing
executives are under increasing pressure to do more for less with
their marketing budgets.
Doing more with
less requires new approaches that manage marketing spending as
both a cost and an investment.
At LP, we work
with companies across a range of industries to develop effective
marketing spending programmes for new and existing brands,
geographies, and channels. Our clients benefit from our in-depth
understanding of the broader marketing issues facing most
businesses and sectors, as well as from our experience in
improving operations and organisational performance.
Our approach to
improving the effectiveness of marketing spend usually entails
efforts around three key levers:
- Tackling
wasteful marketing programmes: We help clients determine the
real return on investment for each programme and identify the
root causes of inefficiency in order to improve or eliminate
inefficient programmes, and start devising
Customer Lifetime
Value and LifeCycle measurement techniques that will
effectively support future resource allocation.
- Refocusing
spending on critical “bottlenecks: Customers form relationships
with products or services as they move from brand awareness to
brand loyalty. Finding where in this process a brand is
encountering difficulty – a bottleneck – allows a company to set
specific spending objectives.
- Applying PSM
discipline: We work with clients to identify ways of applying
PSM approaches to commercial spending across the entire
marketing spend chain. This involves consolidating suppliers,
renegotiating contracts, reducing the total cost of ownership
for key purchases, and streamlining purchasing processes to
reduce shared costs.
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