Return on Marketing Investment

Optimization Group Blog

Introduction to Market Sizing

Posted by Jon Griffin

March 2, 2015

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Have you ever wished you could estimate the size of a market before investing? Perhaps you have a new product idea and you’re not sure if the market for your product is big enough to merit significant financial investment? Or maybe you’re already in the market and you’re thinking about expanding your product line into other price points but you’re not sure what the opportunity is?
 
These are all important questions. Even more, these are all questions that should not be answered by “gut decisions.” Today’s marketplace has a plethora of secondary data available that can help you determine the size of the opportunity and make informed business decisions.
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Topics: Market Sizing

The Problem With Simplicity

Posted by Jeff Ewald

February 18, 2015

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Life is really simple, but we insist on making it complicated.

― Confucius

 
It seems that simplicity has always been embraced. Confucius, Leonardo da Vinci (“Simplicity is the ultimate sophistication”), and Albert Einstein (“If you can't explain it to a six year old, you don't understand it yourself”) are but a few of the world’s great thinkers who have emphasized the virtues of simplicity.
 
Simplicity is comfortable. People simplify the world around us into easy-to-understand “rules” to help cope with the myriad of decisions we must make each day. Managers (being people) also like to simplify. They like simple easy-to-understand data analyses and simple answers. Somewhat paradoxically, it seems that senior managers like even simpler answers (This observation is based on how often we hear clients make the request to “dumb it down to a one-pager so that senior execs can understand it”).
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Topics: Marketing Research

Trend for 2015 “Gut” Decisions Are On the Rise

Posted by Jon Griffin

February 12, 2015

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Last month, Advertising Age asked marketers and agency execs to make predictions about upcoming business-to-business trends in 2015 (Seven B-to-B Marketing Trends That Will Shape 2015). One of the predicted trends suggests that marketing decision makers are becoming increasingly numb to the “digital tsunami of information.” As a result, marketers are looking for “messages that leverage emotion.”
 
Christoph Becker, CEO and Chief Creative Officer of Gyro foresees that “…Data will continue to play an important role in decision-making. However, we have found through our research with Fortune Knowledge Group that decision-makers are increasingly looking to their gut instead of the data."
 
At first blush, this trend makes sense. A glut of data makes it difficult to clearly identify what factors motivate B-to-B customers. If realized, this trend would not bode well for market researchers. Perhaps the market research community shares some of the responsibility for this predicted trend by focusing too much on statistical analysis and methodologies.
 
In contrast to this trend, our experience has found that data is often more effective at uncovering customer emotional motivations than “gut” decisions by marketers. Research can directly identify the visceral reactions of customers by going to the source…the customers themselves. Several research approaches allow a B-to-B marketer to incorporate existing customer data with surveys and external data (psychographics, demographics, etc.) to identify those factors, emotional and other, that drive customer behavior.
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Topics: Marketing & Advertising, Marketing Research

How Your Marketing Effectiveness Changes as Market Conditions Change

Posted by Isaiah Adams

February 10, 2015

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Your market conditions are constantly changing so it’s important to understand how these changes impact your marketing effectiveness. What do we mean by “changing market conditions?” A simple example is tire sales. As gas prices (market condition) increase, people drive less, and therefore buy tires less frequently. If this important market condition is not considered, advertising during a period of high gasoline prices would appear less effective than it might actually be.
 
How do you know which market conditions are impacting your business? The easiest way to explain this is with a case study. At the end of the case study we’ll give you access to an online simulator where you can run your own tests.
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Topics: Return On Marketing Investment

Return on Marketing Investment Whitepaper

Posted by Isaiah Adams

January 30, 2015

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We talk a lot about measuring the effectiveness of marketing investments here on the blog. For one, it’s something we’re passionate about and enjoy doing. Secondly, and even more importantly, we believe it’s something that brings enormous value to your business. In late 2014 we had a conversation with a business about our Return on Marketing Investment (ROMI) work and they asked a very important question (which also led to a blog article), “Why isn’t everyone doing this?”
 
We believe one of the reasons is businesses don’t understand how the process works and have a hard time visualizing what the end result looks like. 
 
For this reason, and many others, today we are releasing the Return on Marketing Investment (ROMI) whitepaper. In a nutshell, think of ROMI as an advanced form of Media-Mix Modeling (MMM). At the end of the whitepaper you’ll have access to a demo simulator where you can play around with the data and see your results. It’s a very user-friendly way of looking at how different variables and spending levels impact your desired result (e.g. Sales).
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Topics: Return On Marketing Investment

Am I Spending Enough on Advertising?

Posted by Isaiah Adams

January 21, 2015

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"Half the money I spend on advertising is wasted; the trouble is I don't know which half." - John Wanamaker

 
Advertising is a continuous guessing game. Doing your homework (research) can help you make informed decisions and minimize risk. Perhaps you’re confident answering some of advertising’s key questions like:
 
When should I spend?
  • If I sell ice cream cones, I should probably spend most of my advertising dollars in the summer when the temperatures are high.
Who should I advertising to?
  • What are the characteristics of my primary customer?
What should I say?
  • Which message is most motivating to produce my desired response? (e.g. sales)
Where should I advertise?
  • Which country/province/region/state/city should I advertise in?
 
The question that is often a black box for companies is, “How much should I spend?”
 
Maybe you’ve tried to answer this question by varying your advertising spending levels. You’re on the right track, but you still haven’t answered the question.
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Topics: Return On Marketing Investment

The Surprising Relevance of TV Advertising in the Mobile Era

Posted by Isaiah Adams

January 7, 2015

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When streaming video services on mobile came onto the scene people started predicting the death of television. To be honest, I was one of them. Many people thought this way because they believed the only reason people didn’t watch TV on their phones is because they couldn’t. The functionality was not there for the masses. Once people could watch TV on mobile, people thought the flood gates would open and the days of staring at the big screen in your living room were long gone.
 
Turns out we were wrong. TV is still a big player. How do we know?
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Topics: Marketing & Advertising

Success Story of Hybrid Research Method

Posted by Isaiah Adams

December 18, 2014

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DISCLAIMER: We fully respect the integrity and confidentiality of our clients. Our case studies do not include any real client data. We want you to know that the safety of your information is important to us. Our case studies are designed to give readers a general idea of what the process and deliverables look like.
 
When clients look to invest in research they often think it boils down to choosing between qualitative or quantitative research. While each of these approaches has its distinct benefits, combining the two in a hybrid approach can lead to deeper and more meaningful results. Today we would like to share a case study about how a Fortune 500 company partnered with Optimization Group and successfully experimented with a hybrid research method. The study guided key strategic decisions in their fast-changing category.
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Topics: Case Studies

The Ultimate List of the Best Market Research Quotes

Posted by Isaiah Adams

December 5, 2014

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Dan Quirk recently started a thread in his LinkedIn group and asked for everyone’s favorite research-related quote. We thought the quotes were so fantastic that we had to share them with everyone. Plus, all of the best research quotes seem to be scattered across the web. So we compiled the quotes we liked from Dan's list, some of our favorite quotes internally, and some of the best from around the web to create the ultimate list of market research quotes.
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Topics: Marketing Research

Explaining Data Mining in Useful Language

Posted by Isaiah Adams

December 3, 2014

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Data Mining FAQ

 
For those not familiar with data mining, simply mentioning the term ‘data mining’ often leads people to mentally check out. The term is carelessly thrown around; leaving the definition unclear. The truth is, the subject is full of jargon, tedious detail, and complicated math; but if you can understand some of the basic concepts it can be extremely valuable.
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Topics: Data Mining

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