1. Robert Cheaney Mary Grace DeForest Oscar de la Vega

2. What is ROMI? The optimization of marketing spend for the short and long term in support of the brand strategy by building a market model using valid, objective marketing metrics. Improving ROMI leads to improved marketing effectiveness, increased revenue, profit and market share for the same amount of marketing spend.market modelmarketing effectiveness With this knowledge, marketing investments can be redirected away from under-performing activities to better performing marketing media. Objectives Marketing Requirements Algorithm Implementation Assumptions Questions

3. Overall objectives Maximize marketing effectiveness and efficiency through common framework and approach ROMI is a cost effective marketing measurement tools leveraging existing systems, data and process Drive actionable planning via ROMI findings Integrate ROMI program into marketing planning process Establish customer awareness, consideration, preference, and loyalty Objectives Marketing Requirements Algorithm Implementation Assumptions Questions

4. General Advertising Schemes Treats all populations the same Undifferentiated Marketing Targets specific populations differently for the same product Differentiated Marketing Targets only one small population for the same product Concentrated Marketing Objectives Marketing Requirements Algorithm Implementation Assumptions Questions

5. Marketing Distribution Average

6. Types of Marketing Strategies  Direct Population Marketing  Web Marketing and Internet Advertising  Non-Traditional Advertising  Brand Advertising Objectives Marketing Requirements Algorithm Implementation Assumptions Questions

7. Direct Marketing Objectives Marketing Requirements Algorithm Implementation Assumptions Questions Offline AdvertisingOnline Advertising Personal/Analyst Relations Direct Mail/Telemarketing E-mailWeb and Net-Media TestingCollateralConsultants

8. Offline Advertising Targets specific sections of populations Diversifies the market Offline Advertising TV Commercials PublicationsRadioFliersFollow-up Tracking Response Objectives Marketing Requirements Algorithm Implementation Assumptions Questions

9. Online Advertising  Website Pop-up Promotions  Direct Link “Coupons”  Links from Related Products’ Sites  Order of Appearance for Search Engines Objectives Marketing Requirements Algorithm Implementation Assumptions Questions

10. PR/AR Analyst Relations Company Sponsorship of other companies Public Relations Team SponsorshipsLuncheonsCommunity DevelopmentVolunteer Sponsorship Objectives Marketing Requirements Algorithm Implementation Assumptions Questions

11. Non-traditional Marketing  Text Messaging  Promotion through News Feeds  Personal Promotion through Blogs  Increased Marketing due to Seasonal Situations Objectives Marketing Requirements Algorithm Implementation Assumptions Questions

12. Who should use ROMI? “Market mix models are most appropriate for brands that have large budgets, a highly diverse marketing mix, and distribution via indirect channels. B2B companies whose marketing objective is to drive leads and spend little on corporate branding are better served by improving their lead management systems.” Forrester Research, Inc. "Best Practices in Market Mix Modeling"; August 25, 2005 Objectives Marketing Requirements Algorithm Implementation Assumptions Questions

13. ROMI Estimated Gain ROMI Number Costumer Surveys CRM Previous Year’s Sales Data Future Estimated Market Changes Consultant Suggestions Objectives Marketing Requirements Algorithm Implementation Assumptions Questions

14. Business Requirements Strong link between marketing strategies, profits and salesCommon metricsDiscipline and rigorBest-in-class assets to automateOne single data sourceROI-based marketing mix model Objectives Marketing Requirements Algorithm Implementation Assumptions Questions

15. Decision % Distribution Objectives Marketing Requirements Algorithm Implementation Assumptions Questions

16. Results Objectives Marketing Requirements Algorithm Implementation Assumptions Questions

17. Business Actions Treat marketing as a business discipline Measure impact of every marketing $ Reduce spend, increase effectiveness Enable fact-driven and data-driven decisions Increase accountability with common metrics Objectives Marketing Requirements Algorithm Implementation Assumptions Questions

18. Region Differentiation Region 1 Region 2 PR Collateral Trade shows Channel marketing Services Print ads Advertising Relationship Marketing Business Unit Products Software Objectives Marketing Requirements Algorithm Implementation Assumptions Questions

19. Real World Application Real WorldAssumptions Linear Estimated Constant Saturation Min. Budget affects results Stable ROMI #’sExponentialAccurate Saturation No individual min. budget Adaptive yearly evaluations Objectives Marketing Requirements Algorithm Implementation Assumptions Questions

20. Brand  Convey a consistent and focused message  Create customer desire to purchase  Excludes the long- term brand building value Objectives Marketing Requirements Algorithm Implementation Assumptions Questions

21. Brand Advertising  Brand Start-up Costs  Letterhead  Logo Labeling/Broadcasting  Promotional Items Objectives Marketing Requirements Algorithm Implementation Assumptions Questions

22. Website Costs  Website Updates  Online Ordering Costs  Ordering scheme/credit card implementation Objectives Marketing Requirements Algorithm Implementation Assumptions Questions

23. Sales Collateral  Overhead costs related to business advertising  Storage Costs  Assets owned by company that must be replaced when change occurs  Letterhead  Excess Promotional Stock  Company Name Items Objectives Marketing Requirements Algorithm Implementation Assumptions Questions

24. Questions? Objectives Marketing Requirements Algorithm Implementation Assumptions Questions