"..our company's success rate runs between 50 and 60 percent. About half of our new products succeed. That's as high as we want the success rate to be. If we try to make it any higher, we'll be tempted to err on the side of caution, playing it safe by focussing on innovations with little game-changing potential."
AG Latley, CEO of Proctor & Gamble
General Electric judge their managers on the proportion of revenues that come from products or services introduced in the last two year.
Shouldn't we be applying that sort of thinking to marketing?
McKinsey suggest that marketers should invest 75/80% of their budgets in proven messages and media (and "regain the testing and validation discipline that many of them once had"). They go on to say "The remaining 20 to 25 percent of spending should finance well-structured experiments"
My thoughts are 80% proven messages and media and 20% of the budget into well structured experiments
Posted by: Ryder Sugden | October 25, 2008 at 05:30 PM
That's precisely what McKinsey recommend. Its time to experiment
Posted by: simon | October 25, 2008 at 07:18 PM