Analogous to other business functions like manufacturing and sales, accountable marketing is based on a set of valid outcome performance indicators and the associated activity input costs.
[citation needed] Recent research by the Forbes CMO Practice[4] and the Marketing Accountability Standards Board [5] shows CMO are under growing pressure to show returns on rising investments in marketing assets, new media, data, analytics and technology needed to compete for digitally enabled customers.
According to Forbes research, the CMO of the average Global 5000 company must now allocate resources across at least 20 primary investment types in their annual budget.
Most marketing campaigns include all three orientations; a brand may have glossy ads to boost attractiveness, brochures to convey information, and coupons with expiration dates to stimulate purchases.
This knowledge comes from repeated examinations over time that show changes from marketing initiatives (from brand and competition) and the evolution of consumers’ needs.
Harold Geneen in his groundbreaking book “Managing” explains the role of an effective CEO: to repeatedly evaluate performance numbers on a continuous basis.
[10] These outcome indicators, representing the condition in the marketplace, are combined with financial data to show efficiency of the marketing process.
[11] ABC methods have the best fidelity as they show contribution efficiency (Brand Experience/$ spent) of each activity, and they may be summed in desired combinations (or campaigns).