Marketing Still Difficult To Evaluate

Finance Directors are still finding it difficult to assess the benefits of marketing for their companies. This is according to a survey of 100 FD’s from the Times Top 1000 by KPMG and the IPA. Although FD’s are very interested in evaluating marketing effectiveness, marketing directors are still lagging in providing them with the information they need.

Key findings of the survey include:

• 58% of FD’s see marketing as a necessary investment for long-term growth although they are more convinced of the necessity of expenditure on training (94%), IT (91%), human resources (79%) and R&D (73%).
• If business costs were under pressure, more FD’s would cut the marketing budget than other activities
• 68% claimed to measure the effectiveness of their marketing spend. However, on average those who did claim to measure found it “quite difficult” to do so.
• Only 17% of respondents review their marketing activities in their annual report and accounts, compared with HR (40%) training (28%), IT (25%) and R&D (24%.)

Kevin Parry, partner in charge of services to advertising at KPMG said, “It is vital that the effectiveness of marketing becomes more transparent and vigorously evaluated. It is no longer a new discipline and there is no reason why it should not justify its activities. The onus now appears to be on the marketing fraternity aided by their advertising agencies to introduce a more business-like approach to their role”.

Kevin Parry, KPMG: 0171 311 1000

Janet Hull, IPA: 0171 235 7020