Marketing Metrics
What/Why Are Marketing Metrics Used <ul><li>In order to assess:  </li></ul><ul><ul><li>The success of a marketing plan  </...
Why is Control in Marketing Planning Important <ul><li>Monitor progress </li></ul><ul><li>Understand discrepancies </li></...
What Are The Steps in Control <ul><li>Measure actual performance </li></ul><ul><li>Compare performance to actual establish...
What Are Common Metrics <ul><li>Cost of a prospect </li></ul><ul><li>Value of a prospect </li></ul><ul><li>ROI of a campai...
What Are Common Metrics  <ul><li>Gross Margin:  </li></ul><ul><li>Subtract cost of goods sold from gross or net sales (dep...
Working Capital <ul><li>Also called working capital  </li></ul><ul><li>How is it measured </li></ul><ul><li>Working capita...
Break Even Analysis <ul><li>Frequently used to study the impact of changes in price, fixed cost, and variable cost on prof...
Two Break Even Analyses The Only Difference is Fixed Cost
Look How Fixed Cost Shifts The Break Even Point
Price Elasticity of Demand <ul><li>How responsive demand is to price changes </li></ul><ul><ul><li>Cigarettes and gas: Ine...
Mark-Up On Cost vs.  Mark-Up on Selling  How much a manufacturer makes How much a retailer makes
Return on Marketing Investment  <ul><li>How an investment in marketing has an impact on the firm’s success  </li></ul><ul>...
Upcoming SlideShare
Loading in …5
×

Marketing metrics control@5 5-07-to be distributed

687
-1

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
687
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
17
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Marketing metrics control@5 5-07-to be distributed

  1. 1. Marketing Metrics
  2. 2. What/Why Are Marketing Metrics Used <ul><li>In order to assess: </li></ul><ul><ul><li>The success of a marketing plan </li></ul></ul><ul><ul><li>Our ability to deliver marketing objectives/goals </li></ul></ul><ul><ul><li>To re-affirm/reinforce resource allocation for a project </li></ul></ul><ul><ul><li>Compare actual performance vs. planned performance of marketing dept. </li></ul></ul>
  3. 3. Why is Control in Marketing Planning Important <ul><li>Monitor progress </li></ul><ul><li>Understand discrepancies </li></ul><ul><li>Provide direction in understanding where discrepancy occurs </li></ul><ul><ul><li>Product mix or pricing </li></ul></ul><ul><li>Provides information on whether resources must be shifted/re-allocated </li></ul><ul><li>Helps understand if objectives need changing </li></ul><ul><li>Provides recognition of changing environmental conditions/dynamics </li></ul>
  4. 4. What Are The Steps in Control <ul><li>Measure actual performance </li></ul><ul><li>Compare performance to actual established marketing objectives or strategies </li></ul><ul><li>Make adjustments to objectives or strategies based on analysis </li></ul>
  5. 5. What Are Common Metrics <ul><li>Cost of a prospect </li></ul><ul><li>Value of a prospect </li></ul><ul><li>ROI of a campaign </li></ul><ul><li>Value of telesales </li></ul><ul><li>Conversion rates of users of competitive products </li></ul><ul><li>Referral rates </li></ul><ul><li>Response rates to direct marketing </li></ul><ul><li>Brand awareness </li></ul><ul><li>Perceived service/product quality </li></ul><ul><li>Customer turnover </li></ul><ul><li>Market share </li></ul><ul><li>Amount sold on promotion </li></ul><ul><li>Reach and frequency of advertising </li></ul><ul><li>Recognition/recall of advertising </li></ul><ul><li>Sales calls/day </li></ul><ul><li>Order fulfillment efficiency </li></ul><ul><li>Customer satisfaction </li></ul>
  6. 6. What Are Common Metrics <ul><li>Gross Margin: </li></ul><ul><li>Subtract cost of goods sold from gross or net sales (depending on your company) </li></ul><ul><li>What’s left over is gross margin on sales. </li></ul><ul><li>Why is it important: </li></ul><ul><ul><li>It covers all of the other operating expenses and hopefully enough is left over to result in a respectable bottom line profit. </li></ul></ul><ul><ul><li>If gross margin is low, then the company should have high inventory turnover (grocery store) </li></ul></ul><ul><ul><li>If gross margin is high, inventory is probably held a long time (i.e. furniture) </li></ul></ul>
  7. 7. Working Capital <ul><li>Also called working capital </li></ul><ul><li>How is it measured </li></ul><ul><li>Working capital = current assets – current liabilities </li></ul><ul><ul><li>Usually current assets (cash, inventory, accounts receivables) </li></ul></ul><ul><ul><li>Current liabilities (accounts payable) </li></ul></ul><ul><li>Why is it important: </li></ul><ul><ul><li>Can the company meet its day-to-day liquidity demands </li></ul></ul><ul><ul><li>Is money tied up inventory </li></ul></ul><ul><ul><li>Reflects a company’s efficiency and its immediate term health </li></ul></ul><ul><ul><li>Are you managing your inventory, your customers and your suppliers? </li></ul></ul><ul><ul><ul><li>How well is the firm minimizing its inventory, collecting its account receivables and pro-longing its accounts payables (liabilities) </li></ul></ul></ul>
  8. 8. Break Even Analysis <ul><li>Frequently used to study the impact of changes in price, fixed cost, and variable cost on profit. </li></ul><ul><li>Calculation: </li></ul><ul><ul><li>Break even point = (fixed cost)/ (unit price – unit variable cost) </li></ul></ul><ul><li>Value: </li></ul><ul><ul><li>Answers, how much do I have to sell or what expenses do I need to minimize in order to make a profit </li></ul></ul><ul><ul><li>Analyzes relationship between total revenue and total cost to determine profitability at various levels of output. </li></ul></ul><ul><ul><li>Reflect quantity at which total revenue and total cost are equal and beyond which profit occurs. </li></ul></ul>
  9. 9. Two Break Even Analyses The Only Difference is Fixed Cost
  10. 10. Look How Fixed Cost Shifts The Break Even Point
  11. 11. Price Elasticity of Demand <ul><li>How responsive demand is to price changes </li></ul><ul><ul><li>Cigarettes and gas: Inelastic </li></ul></ul><ul><ul><li>Commodities: Elastic </li></ul></ul><ul><li>Measured by percentage change in quantity demanded relative to a percentage change in price. </li></ul><ul><li>Formula </li></ul>
  12. 12. Mark-Up On Cost vs. Mark-Up on Selling How much a manufacturer makes How much a retailer makes
  13. 13. Return on Marketing Investment <ul><li>How an investment in marketing has an impact on the firm’s success </li></ul><ul><ul><li>Calculation may vary on firm an industryq </li></ul></ul><ul><li>ROI = Return/Investment </li></ul><ul><ul><li>Return = profit </li></ul></ul><ul><ul><li>Investment = sources of capital (expenditure) </li></ul></ul>
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×