Marketers face several challenges when it comes to making investment decisions that yield results. These challenges, often referred to as the Three C’s – Complexity, Conflict, and Cost, must be overcome in order to devise effective marketing strategies.
In this blog, we are going to explore the first hurdle, Complexity. Complexity refers to the analytical and logical complexity involved in navigating the vast array of variables in marketing. Marketers have to deal with multiple distribution channels, diverse product segments, varying geographic markets, and numerous marketing tactics. Additionally, there are diminishing marginal returns to investment, meaning that the incremental returns decline as investment amounts increase. Understanding the short-term and long-term effects adds another layer of marketing complexity.
Tackling the complexity in marketing investments
Some of the variables that make marketing investment and analytical decision-making complex are multiple product offerings, investment alternatives, marketing tactics, targets, and geographic markets. Due to the sheer number of variables and considerations, each one of these variables contribute to the complexity of marketing investment decisions.
Let’s dig into the complexity surrounding each of these variables a bit deeper.
- Having multiple products means that marketers need to allocate resources effectively across different offerings, taking into account factors such as product lifecycle, market demand, and competition.
- Various investment alternatives increases complexity as marketers must assess the potential returns and risks associated with each option, weigh them against the organization’s objectives, and make informed decisions.
- The selection of marketing tactics poses challenges as marketers must identify the most suitable strategies to reach their target audience, considering factors such as consumer behavior, market trends, and competition.
- Determining your target markets and segments requires thorough analysis of consumer behavior, market trends, and demographic factors to effectively allocate resources and implement targeted strategies.
- Accounting for demographic, psychographic, and geographic factors, requires a comprehensive understanding of consumer preferences, attitudes, behaviors, and location-specific considerations to tailor strategies and allocate resources effectively.
All these factors combined create a complex web of variables that marketers must analyze, prioritize, and integrate to make effective marketing investment decisions. This complexity highlights the importance of employing analytical techniques, advanced technologies, and data-driven marketing insights to navigate through these challenges and achieve desired results.
Overcoming complexity with the Keen Platform
To overcome these complexity challenges, in addition to conflict and cost challenges, marketers are encouraged to devise strategies that are analytically sound, organizationally aligned, and financially prudent. In order to tackle the complexity and ambiguity in marketing, the use of software is recommended. Software can help streamline the process by providing a structured approach and removing ambiguity. The Keen Platform’s features allow users to enumerate and name all the factors in their marketing model. Additionally, our models take a Bayesian approach, and perform complex calculations in seconds, keeping the focus on decision support rather than spending excessive time on data analysis.
| The Keen Platform addresses “Complexity” pain points | |
| Pain Point | Where in the platform Keen can help |
| Multiple products | Portfolio |
| Multiple investment alternatives | Plans |
| Multiple marketing tactics | Factors |
| Multiple target and segments | Portfolio |
| Multiple geos | Portfolio |
To learn more about the Three C’s and how unified marketing measurement holds the promise of providing a structured approach to tackle these challenges and help you make the best marketing investment decisions possible, go to the “Guide to Decision Making With Unified Marketing Measurement” blog.
