Bank of Baroda Clinches the Prestigious SPJIMR Marketing Impact Award 2007

Bank of Baroda Clinches the Prestigious SPJIMR Marketing Impact Award 2007

Prof. Ruppal Sharma, Asst. Professor, SPJIMR, said that demonstrating impact through marketing and the growing need of measuring marketing effectiveness should be the focus. One of the most pressing issues is the market valuation of the companies by the intangible assets like patents and the challenge of ROI marketing.

Companies need to understand how their action of increasing customer loyalty has increased their profitability. ROI is more beneficial if you are comparing more matured markets and the impact marketing should concentrate on value creation. The focus should move to sales and market shares, which is intend to impact margins, working capital and cash flows. Metrics apply to marketing because analytics evolving rapidly.

The Panel Discussion comprised of Mr. Mithileshwar Jha, Mr. Ranjiv Singh, Mr. Nehal Medh and Prof. Ruppal Sharma revolved around making marketing accountable and demonstrating marketing impact. Mr. Jha spoke of seeing marketing as a function of philosophy and discussed the two major roles of marketing, which are to raise aspiration levels and to target and position products and ensure availability. Problem with traditional marketing is that there is a discord between happiness and consumption and the happiness scale has nothing to do with the per capita income of the nation. The focus should not just be on return on investment but there should be a new paradigm of marketing called the developmental marketing where the interest is human happiness.

India is a very exciting market and the budgeting and allocation of extra money to campaigns will depend on the fundamentals of the kind of explorations and design and not gut feel or instinct. In terms of return on investment, there are two aspects of impact and efficiency and both are important.

There are tools to create impact and measure efficiency and the difference is created by the passion, which is an essential element. Companies are getting more responsible about effective marketing but there is an emphasis to make business sense ensuring that the advertising expenditure translates to monetary returns. Altruistic and spiritual beliefs are still not applicable in the business scenario and the bottom line continues to be profit for companies.

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Contributed by -
Meghana Kedar (Campus Associate),
PGDBM, Batch of 2006-08,
S. P. Jain Institute of Management & Research, Mumbai.

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