Das ka Dum with Dr Bhaskar Das | The P&G CFO has said the FMCG major will be “100% ROI-driven” in terms of marketing budgets. But the problem is what if the choice of media where monies are spent is wrong?

An issue that has been discussed much in marcom circles. Here goes Dr Bhaskar Das in the August 9 edition of Das ka Dum. Read on…

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Q. Another question on P&G: Its CFO has said the FMCG major will be “100% ROI-driven” in terms of marketing budgets. But the problem is what if the choice of media where monies are spent is wrong?

A. This is an absurd and contradictory statement, if read in isolation. ROI, ipso facto, presupposes that it’s left brain, algorithm-based and can’t be generally wrong in statistical terms. But ROI’s efficacy is predicated on many other factors of business and marketing decisions eg product, pricing, distribution etc. So, when ROI calculation goes awry, some heads would get chopped or the Boss has to go back to the drawing board to check which assumption have queered the pitch and take corrective action.