Eighty-four percent of respondents to a recent study by Prophet, a leading brand and marketing consultancy, admitted that Marketing Return on Investment (MROI) is not well understood in their businesses.

Prophet's annual State of Marketing study also finds that marketers believe improved effectiveness of their marketing investments is one of their corporation's top three business priorities. Yet their limited influence over critical business drivers and inconsistent measurement activities keep them from delivering.

"The Effectiveness Imperative" surveyed over 100 senior-level marketers from global corporations based in the U.S., U.K., and Germany about their marketing investments.

"It revealed disconnects between marketers and their internal expectations, and between marketers and customers. In fact, customers are overtaking marketers in their appetite for and use of new media channels," said Prophet Chief Executive Officer Michael Dunn.

Study participants agreed on the most critical drivers of business growth: Execution of business strategy at 72 percent; improved customer experience, 64 percent; and new products, 52 percent. Such key growth drivers should at least touch upon marketing's purview, yet respondents indicated minimal involvement in related activities. More than one-third played no role in either customer service delivery or in pricing. Nearly half were uninvolved in activities to boost sales force strength. Instead, the vast majority is responsible only for traditional marketing communications activities such as advertising, promotions, and marketing strategies.

"The risk is obvious," said Dunn. "The soundest strategy and most creative advertising can't by themselves create the kinds of customer relationships or the material impact that are expected of senior level marketers and their groups."

The study also found that marketers aren't keeping up with customers in areas where they ostensibly do have control - the fast-changing mix of media.

"Word of mouth" is gaining influence. Consumers spend 23 percent of their media time online. So, not surprisingly, more than half of respondents acknowledged new media's importance. Yet, one-third admitted that they don't understand its effectiveness enough to use it more extensively. Nor do they understand how to use it to meet business objectives.

Instead, the group said their comfort levels dictate the tools they use to reach and influence the customer. And tradition is the byword. Advertising in traditional media is favored by the vast majority, comprising 27 percent of their fiscal 2007 budgets, versus only 13 percent for non-traditional media.

New media or old, however, effectiveness of tactics remains the issue - and a difficult one to resolve when only 54 percent said they measured any of their marketing activities consistently. Those that do measure most commonly apply metrics to sales promotions and print advertising (54 percent), followed closely by sponsorships and events (53 percent), and television advertising (52 percent). Yet some of the most measurable activities like loyalty programs and Internet banner advertising were among the least measured - by 39 percent and 38 percent respectively.

Prophet (www.prophet.com) is a leading global consultancy specializing in helping Fortune 500 clients and their senior marketers more effectively use brand and marketing to drive profitable growth.