ROI Of Rural Marketing Campaign To Justify Marketing Budgets

 

Companies spend a sum ranging from 7% to 11% of their revenue annually on marketing efforts and while this might seem like a decent amount to some while others would call this risky.
 
Why is this so?
The reasoning behind this argument can be the conventional approach taken whereas this expense is considered as a charge on profit rather than an investment made in order to gain future benefits. 

Traditionally, the emphasis used to be on the tangibility of the paybacks which were considered near to impossible to prove for the outlay required for rural marketing.
 
This lead to the issue of rationalization of the investment so made, how to justify the increasing pile of funds that organization’s allocate in the name of rural marketing, promotion and advertising.

How to justify rural marketing budgets?

The answer can be summarized in three golden words:-

Return on Investment (ROI)

Return on Investment or ROI as it is commonly known is a profitability ratio which can be calculated using different approaches and formulas. It is a mathematical yardstick to measure the benefits reaped from the investment made in rural marketing. The rationale behind the inclusion of numbers is to provide a clear and precise result to people who are otherwise unable to read between the lines.

For the uninitiated, let us take an example pertaining to our daily life where you are approached by two different salesman selling their schemes.

1. Mr. XYZ comes to you and offers you an opportunity to invest Rs.5, 000/- in his scheme, if you do invest, he promises that you will see a return of 8% within the next six months.

2. Mr. ABC comes to you and offers you a unique opportunity to invest Rs.5, 000/- in his new company but he cannot promise you a percentage of return. The return is designed based on the future growth of the company which is difficult for you to assess.

What would you do?

Even when the amount is less, we would prefer to be assured on what returns it is yielding us, without which our desire seems to fade away.

Now, imagine the perplexity of top management or finance officer when they are asked to approve up to 8% of their revenue on rural marketing. This is exactly why there is a pressure on marketers to justify the requirement for these funds but the trouble sets in where the calculation becomes a big puzzle.

Why is calculating ROI important?

In order to satisfy the doubts that may surface in management’s mind over the improbable returns of marketing campaigns and prove their success.

The rural marketing agency should incorporate performance parameters such as ROI in order to communicate its worth to the clients.

Management of the organization is not necessarily trained to identify and calculate such indicators and therefore ROI assists them in taking better decisions.

Plays a significant role in placing reassurance in the services of the rural marketing agency.

How to calculate ROI?

Even though it is incredibly difficult to establish a direct connection to the expense made and benefits received by the company. Even when indirect links are being built, there remains suspicion of involvement of other external factors. However, parameters can be trusted to give a near accurate replica of the actual results to play to the vanity of financial inclusion.

Few ways to calculate the ROI:-

·         Sales Approach

            ROI = (Increase in growth- Marketing Cost) / Marketing Cost

·         Gross Profit Approach

            ROI= (Gross Profit- Marketing Cost)/ Marketing Cost

·         Profit approach

            ROI= (Gross Profit- Incremental Expenses)/ Marketing Cost

·         Customer Approach

            ROI= (Customer Value – Marketing Cost)/ Marketing Cost

·         Incoming Leads Approach

            ROI= (Increase in leads- Marketing Cost)/ Marketing Cost

It’s The Time When Marketer Can Apply Big Data Analytics In Rural Marketing Campaign

The Big Data Scare

Big data is nothing but a set of large data that can be broken down as per requirement to yield useful results in order to study trends or patterns.

A table full of numbers can be dream for one person and nightmare for another, while some see data as raw material, most are intimidated by its presence. Nevertheless, data management and analysis is significant to the operational success of any marketing campaign. This is where big data analytic comes into the picture, the process helps to reveal trends so that market information can be understood through correlations and other analytical techniques.

It means using mathematical applications to convert unstructured data into useful business information that assists the management into taking worthwhile decisions. The end usage of the data is to connect it to human behavior and interactions to make it expedient in rural marketing efforts.

How does big data analysis help in rural marketing?

The emphasis on collection and storage of data is heightened in the digital age due to the vast possibilities that come along with this compilation. In case of rural marketing, trouble surrounds the maintenance of benefits in a tangible avatar that is to show the advantages of a rural marketing campaign using data. However, the insights gained through this analysis can assist the marketer in achieving a better return on investment, through indirect means.

Product design and development.

Big data analysis gives the marketer an understanding of the customer’s needs and preferences which helps them to give valuable inputs during the process of product design and development or even reintroducing it in the market to capture more share.

Cost Reduction 

Cost reduction can be a tricky area in rural marketing, to avoid expenses without compromising on quality of the services but big data analysis assists in pointing out the areas where this can be established. Once the scope of reduction is outlined, achieving it becomes easier.

More efficient decision making

Decision making can often prove to be a very tedious job and rather difficult one at that. Analysis of such a large set of data can act as aid to form a firm reasoning or logic behind the decisions. The support of such analysis gives the decision a stronger base and the same is seen in the results.

Customer Engagement

The insights into customer behavior, needs, preferences and purchasing patterns gives the marketer the matter to create content that is intended specifically for the target audience. Such content and marketing strategies are sure to engage the audience.

Customer Retention

Not even a conversation can survive without the strong arms of logic and vision, the same way a table needs four legs to stand stable, a marketer needs data analysis to create a successful rural marketing campaign. These learning ensures that the customer’s satisfaction is on the cards and when they are satisfied, they ought to stay with the brand longer.

Improvement in credibility & loyal following

Analysis gives the brand the necessary juice to take right decisions and increase its trustworthiness amongst the customers and prove its integrity to its peers.

The above benefits braid together to create a more powerful return on investment and therefore big data analytic should be applied by marketer in rural marketing campaign.

Conceptual Marketing Campaign Works Inlong Lasting Imprints In Consumer Mind

Any great campaign starts with a raw idea that needs transformation that comes from curtain done by experienced and creative hands. In order to create magic to mesmerize and capture the interests of the customers, innovative and distinctive ideas are needed but is that all? Does a single idea has the potential to create a brand and build a lasting impression?

The truth is, a good idea is like a good seed, even though it has the potential of growing into a big tree that provides shade, it needs help getting there. It needs someone to sow it in the field and provide it with water and care. Similarly, a great idea can only provide benefits if it has caretakers, a team to simplify it and create a conceptualized representation.

What is conceptualization?

Technically, it is the process of development and clarification of concepts. In regards to marketing campaigns, it can be understood as a process of creating an idea and working towards incorporation of the same in a campaign. Features forming steps that can help understand the process of conceptualization are as follows:-

Stating the marketing goals for the product or the brand

Understanding the target audience, its needs and preferences

Comprehending geographical and regional differences

Matching the use and needs to find the link between the two

Listing out the requirements

Drafting a strategy to accomplish the said goals

Taking assistance from past experiences, examples and market trends

Consideration of cost and social benefit

The theory of conceptualization is an adamant supporter of development of a concept which is an abstract idea. Instead of going head on into it, it begs the use of a more effective way of designing a campaign. It is distinct and unique to every single campaign. It can be utilized as a special purpose framework intended to result in the fulfillment of the marketing objectives of the company. Benefits of conceptualization reaches deeper than the surface and are seen as essential when it comes to being creative.

Why conceptualize?

Effectiveness and efficiency are qualities that need no advocacy or explanation but those are not the only reasons marketers are attracted towards it. It is because even though the process is long and road rocky, it gives the competitive edge the brand craves. We all keep talking about how important marketing is but how would you stand out when there are thousands other who agree with the same point?

That is where Conceptualization comes to focus as it helps to create a campaign that is not only based on a powerful idea that appeals to the masses but also executed in the correct way. For example, use of Swachh Bharat Abhiyan to market cleaning products- every other cleaning product will tell you that it removes all stains and gives shine etc. but we have all heard that so we don’t bother but when they start with telling us the importance of cleanliness in our schools, streets and country as a whole, we listen.Why?

Is it that “Daag achhe hote hai?” No, it is because we have never seen the link between a central government project and a cleaning product.

When you base your campaign on an idea instead of basic instincts of revenue maximization, it creates a more lasting impression on the target consumer. Everyone is aiming to fit their needs but is that enough to last the elimination round and thinning of the herd? No, for that your campaigns need to break barriers of communication and reach out to the sensibilities of the customers that do more than satisfy their needs. Conceptualization of marketing campaigns is the best way to leave lasting imprints on the customers and the most effective way to do so.