Combined Approach Yields Higher ROI

2017 01 17   Peter Feinstein   Advertising    

I’m always wary of surveys or research studies that are self-serving in nature; they’re usually far too limited in scope, seeking only the narrowest of information and answers to serve a predetermined end.

I believe that’s what I see in this article. Yes, the research was conducted by an industry leader, so it certainly followed all the proper statistical methodologies, I just wonder about the premise, questions and results.

In my decades of experience with package goods and fully integrated marketing programs, it is the combination of marketing, promotion and advertising that leverages the highest return on investment (ROI), usually exceeding vendor projections by 25-to-30 percent. All the funding comes from product case movement, and every moving piece of the program is funded through incremental sales generated by leveraging additional displays with each vendor’s retail channels.

This is far more powerful than marketing, and significantly more robust than just advertising. So, while the study Turner commissioned is accurate about how shifting even small portions of promotional budgets can easily double sales dollars per-spend, the real story is what was missed in the analysis: Whenever you have an opportunity to leverage display space and drive consumers in-store with a fully integrated marketing promotion (display, point-of-sale setup, consumer pull and significant media spend), you’ll find ROI in the $3.36 neighborhood – with a guaranteed sell-through.

Who wouldn’t want that? Turner, for one – because you actually need business people to be sales reps, not order takers, and at that level of advertising, sadly, all you have are the latter. No one “needs” to work on the real business of business; they’re simply taking time orders. I get it – but on some level you’re going to have to fill the air time with something, so why not the details of a fully integrated retail marketing program? Just asking …