Strategic Manufacturing Marketing ROI: Setting Goals & Planning

[dot_recommends] August 4, 2021 Manufacturing Business Strategy

Taking a Full Circle View on Manufacturing Marketing ROI

strategic manufacturing marketing ROI - manufacturers spent -3.79% less on marketing overall in 2020 and increased digital marketing spending 14.71%

Your strategic marketing plan needs to include an ROI goal, but what is a realistic strategic manufacturing marketing ROI goal? Here at StratMg, we recommend an overall marketing ROI goal of a 5:1 ratio of revenue to spending. That’s $5 of revenue attributable to every $1 of marketing spend.

How to Optimize Strategic Planning for ROI

Not every marketing activity will achieve the 5:1 ratio level of ROI. Some will perform better while some will not reach this rate of return on investment. Overall, though, this should be an attainable goal. So how do you plan for this level of ROI?

Assuming you have your market segments well defined and you’ve done your homework on the buyer personas, you’re ready to setup your marketing mix.

Prioritizing High-Performance Channels

Your marketing strategy should clearly articulate channel priorities based on anticipated performance. As you consider your marketing budget and strategy for the coming year, think full circle. Ask yourself these questions:

  • What revenue do you expect to generate from marketing as a whole?
  • What portion of that revenue will you assign to each channel?
  • What has been the ROI for each channel historically?
  • What steps might you take to boost ROI in that spending area?
  • Based on these considerations, how will you allocate spending to maximize ROI and meet your ROI ratio goal?

Measure and Track Results

Measuring marketing ROI continues to be a challenge. Integrating digital tracking across all platforms—in person and online—will help empower better ROI tracking. For tips on tracking in-person events, see our previous post.

This is a quick look at ROI for manufacturing marketing. Get in touch if you’d like to talk specifics for your company.

–parin

Managing Partner

Image data source: Deloitte; American Marketing Association; Wall Street Journal; CMO Survey; and Duke University via Statista

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