Managing Marketing Cost Envelope
The consumer products and services business within a global technology company had fragmented their marketing spend in multiple siloed budgets across business units, corporate, region and country organizations. Some of this was due to recent company and product line acquisitions, and some was the result of legacy budget management processes and accountabilities. As a result, the CMO found it difficult to answer the fundamental question of where the overall marketing budget was being spent and whether the spend was aligned with the strategic priorities of the business.
Applying a MarketFrames marketing cost envelope (MCE) framework, our team completed an inventory of spend throughout the business and value chain organizations. By putting this structured, up-to-date information in the hands of the CMO within an ongoing MCE process that tied to strategic marketing plan development and execution, the previously fragmented spend was more effectively allocated, tracked, and managed against strategic priorities. Through greater alignment and transparency of marketing spend across the broader company, the CMO was able to accelerate progress against strategic objectives, and achieve better overall results.
The deliverables from the MCE optimization project included:
- A comprehensive framework and set of custom models for capturing, viewing and analyzing total marketing spend
- Benchmark industry and competitor data provided for historical comparison and targeting
- Identification of MCE elements and the internal financial and marketing source data and provisioning required
- Documentation and prioritization of strategic marketing objectives providing the foundation for MCE allocation and measurement
- Definition and implementation of a monthly MCE planning and review process with organizational leaders in a council format.