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 / Spring 2009 / Issue 54(originally published by Booz & Company)


Measuring Your Way to Market Insight

At the same time, company leaders should start thinking and planning for the long term. What metrics do they need? Which analytical approaches can provide insight into them? The critical issues of analytics are reproducibility and reliability. The marketing ROI capability cannot be outsourced, and eventually, even if calculations are outsourced, internal expertise will be needed to manage the process and ensure the quality of the outsourced service.

The third consideration in choosing analytical approaches is the marketing objectives for the company’s brands. Ideally, marketers set brand objectives based on where the brand is in its life cycle. They then determine which vehicles can best achieve those objectives. Dif­ferent campaigns employ different marketing vehicles that produce different levels of data availability and involve different levels of investment, and thus require the use of different analytical approaches.

For example, launching a new product typically requires large investments to build brand awareness. The marketer would choose vehicles such as billboards, Web sites, and sponsorships in support of that goal, and an analytical approach — probably the purchase funnel — that is focused on a qualitative metric. Conversely, if a company were trying to boost purchase on a mature brand in a competitive market, it might choose consumer coupons, TV ads, or Internet direct sales and use an analytical approach — in this case, modeling — that measures purchase behavior more directly. In general terms, brand-building efforts that seek to affect customer perceptions generally suggest attitudinal analytics. Objectives focused more directly on sales and volume generally suggest behavioral analytics.

When marketers fully develop their analytical prowess, they can use multiple analytical approaches to optimize their return on spending and stimulate accountability and creativity. In weak economic con­ditions, this capability is not only critical to maintaining a strong corporate commitment to marketing — it may well be essential to the future of the company as a whole.

Reprint No. 09107

Author Profiles:
Leslie H. Moeller is a partner with Booz & Company in Cleveland. He leads the firm’s North American work in the consumer, media, and retail industries, and previously led the firm’s global efforts in marketing and sales.

Edward C. Landry is a partner with Booz & Company with two decades of experience in consumer industries. Based in New York, he focuses on strategy development, business transformation, and sales and marketing effectiveness across a broad range of consumer businesses.

This article was adapted from The Four Pillars of Profit-Driven Marketing: How to Maximize Creativity, Profitability, and ROI, by Leslie H. Moeller and Edward C. Landry, with Theodore Kinni (McGraw-Hill, 2009).
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  1. --> Michael Farber, Tom Greenspon, and Jeffrey Tucker, “The Practical Visionary,” s+b, Spring 2008: Describes how reliance on better data suggests a new, more comprehensive role for the chief information officer.
  2. Gregor Harter, Edward Landry, and Andrew Tipping, “The New Complete Marketer,” s+b, Autumn 2007: How chief marketing officers can lead a profit-driven approach for the whole company.
  3. Rich Kauffeld, Johan Sauer, and Sara Bergson, “Partners at the Point of Sale,” s+b, Autumn 2007: Shelf-centered collaboration among manufacturers and retailers provides a major new opportunity for marketing analytics.
  4. Leslie H. Moeller and Edward C. Landry, with Theodore Kinni, The Four Pillars of Profit-Driven Marketing: How to Maximize Creativity, Profit­ability, and ROI (McGraw-Hill, 2009): Along with analytics, shows how to deploy decision support tools, a better marketing process, and organizational alignment to build stronger brands and customer relationships.
  5. Leslie H. Moeller, Sharat K. Mathur, and Randall Rothenberg, “The Better Half: The Artful Science of ROI Marketing,” s+b, Spring 2003: An early wake-up call that introduced the concept of using sophisticated analytics.
  6. Christopher Vollmer, Always On: Advertising, Marketing, and Media in an Era of Consumer Control (McGraw-Hill, 2008): Introduction to the new marketing and media world created by digital media, in which analytics and profit-driven marketing are more relevant than ever.
  7. For more on marketing and sales, sign up for s+b’s RSS feed.
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