Marketers are accountable for the return on their marketing investments. Two approaches :
Marketing metrics is the set of measures that helps firms to quantify, compare, and interpret their marketing performance. They can use:
sales variance analysis: annual plan for selling $ 4000 widgets at $1 per widget, for total revenue $ 4000. At quarter’s end, only 3000 widgets were sold at $0,80 per widget, for total revenue of $ 2400. How much of the sales performance is due to price decline and volume decline?
market share analysis, and financial analysis (Return on Investment and other financial ratios)
b. Marketing mix modeling : to understand the effects of specific marketing mix activities. Thus, such statistics as Multivariate Analyses are conducted.
One major reason for undertaking marketing research is to identify market opportunities. Once the research is complete, the company must measure and forecast the size, growth, and profit potential of each market opportunity
Based on these estimates of market demand, the company can prepare sales forecast
There are two types of demand:
To estimate current demand, companies attempt to determine industry sales and market share. This means identifying competitors and estimating their sales. The industry trade association will often collect and publish total industry sales. With this information, each company can evaluate its performance against the whole industry
To estimate future demand, companies survey buyers’ intentions, solicit their sales force’s input, gather expert opinions, or engage in market testing