ROI
Posts on the topic of ROI
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Because the purpose of business is to create a customer, the business enterprise has two – and only two – basic functions: marketing and innovation. Marketing and innovation produce results; all the rest are costs.
– Peter Drucker
The quote above is from Peter Drucker’s book, Innovation and Entrepreneurship. The book was first published in the 1980s, and it was re-released a couple of years ago. It is still sound advice. If you want to improve business, marketing and innovation had better lead the way. Considered by many as the preeminent business consultant and author for decades, Drucker is the person who coined the term knowledge worker.
Considerable effort should be spent on measuring the success (or failure) of marketing and innovation. Why? Another famous Drucker quote answers that question: “What’s measured improves.”
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Author, marketer, A-list blogger, venture capitalist, and entrepreneur Guy Kawasaki is interviewed by Jeremiah Owyang at Forrester. See the video on the Forrester Marketing Blog.
Guy says measurement and metrics will be big in 2008. He also talks about entrepreneurism and how he uses social media to drive business for his company, Truemors.
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One of the biggest problems with advocating Unit Tests is the fact that the return on investment is transparent and immeasurable. In his blog {codesqueeze}, Max Pool offers a simple but elegant way to increase awareness of how much time is wasted when you don’t Unit Test.
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An Advertising Age article this week reported that many major advertisers are asking magazines for better, more accountable circulation figures or they are threatening to bypass the medium altogether (link here, but it is usually locked behind a paywall). The article states:
“The new power play reflects the growing demand for precision metrics in the media business, a drive fueled by an internet model that seems to promise instant accountability. It is also, though, part of a broader regime change in the industry, one that has delivered dominance to advertisers from media owners. Marketers now have too many options and have found too many ways to sell themselves, beyond traditional advertising, for publishers or broadcasters to keep setting the agenda.”
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News organizations still compete fiercely to get the story first, but a new competition has emerged behind the scenes: the battle for the hottest news-related keywords on search engines. Today’s Wall Street Journal reported on the growing use of pay-per-click advertising by news organizations.
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