Marketing Head’s Conundrum Harvard Case Solution & Analysis

We Sell Everything In Software (WSES) Inc. follows a high growth route and innovative off-the-shelf goods. They had a healthy pipeline as well as their yearly marketing spend of $500 million was allocated at flat 6% of the sales value that is expected on the basis of conversion probabilities. WSES did not have a structured approach for calculating sales conversion probabilities - it followed its advertising and sales team’s instinctive feelings. Thus, it incurred high marketing cost including travel costs, customer visits, time spent logistics costs, and by the sales team/technical specialists/support staff. Jack, the CEO of WSES, was worried that despite having such a tremendous expense list, the sales conversion chances based on the pipeline was at best an ancillary advice, as there was no substance in justifying the ''gut feeling''.

Marketing Head's Conundrum Case Study Solution

Thus, Jack was exploring multiple options with Ben, Vice President, and Marketing and was not too convinced of the process. Considering that WSES pursued around 1,000 chances every year, which they either won or lost, Jack felt the need to have the data that they had collated over the years validated and therefore interpreted. Consequently, WSES engaged Mark with a Ph.D. in data to comprehend if they could determine a structured approach to compute conversion chances and devise an ideal means to allocate marketing spend such that even with significant decrease in advertisement spending, the objects on expected values on sales and profits were met.

PUBLICATION DATE: October 14, 2015 PRODUCT #: IMB541-HCB-ENG

This is just an excerpt. This case is about SALES & MARKETING

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