Session 6 MG 220 BBA - 25 Aug 10

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Session 6
MG 220 Marketing Management
BBA

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Session 6 MG 220 BBA - 25 Aug 10

  1. 1. Part 2: Capturing Market Insights<br />> Measuring Marketing Productivity<br />> Forecasting and Demand Measurement<br />Class Presentation | Session 6 | 25 Aug 2010<br />
  2. 2. Measuring Marketing ProductivityConcept<br />Accountability of Marketing programs & Marketing Management<br />Marketers should:<br />Be able to justify the marketing expenditures<br />understand and analyze “financials” of their activities<br />Review and analyze all kind of financial data particularly related to their activities<br />MG 220 Marketing Management<br />2<br />
  3. 3. Measuring Marketing ProductivityApproaches<br />2 Key Approaches:<br />Marketing Metrics<br />Marketing-Mix Modeling<br />MG 220 Marketing Management<br />3<br />
  4. 4. Measuring Marketing ProductivityMarketing Metrics<br />Marketing Metrics is the set of measures that helps firms to quantify, compare and interpret their marketing performance<br />Used by marketers to design programs<br />Used by top management to decide on allocations<br />MG 220 Marketing Management<br />4<br />
  5. 5. Measuring Marketing ProductivityMeasuring Marketing Plan Performance<br />Four key tools used:<br />Sales Analysis<br />Market Share Analysis<br />Marketing Expense-to-sales Analysis<br />Financial Analysis<br />MG 220 Marketing Management<br />5<br />
  6. 6. Measuring Marketing ProductivityMeasuring Marketing Plan Performance<br />1. SALES ANALYSIS<br />Consists of measuring and evaluating actual sales in relation to goals<br />Sales Variance Analysis measures relative contribution of different factors to a gap in sales performance<br />Microsales Analysis looks at specific products, territories that failed to produce results <br />MG 220 Marketing Management<br />6<br />
  7. 7. Measuring Marketing ProductivityMeasuring Marketing Plan Performance<br />2. MARKET SHARE ANALYSIS<br />How well company is performing compared to competitors<br />Overall Market Shareis the company’s sales expressed as a percentage of total market sales<br />Served Market Shareis the company’s sales expressed as a percentage of total sales in served market<br />Served Market: All buyers and who are able and willing to buy its product (generally a part of total market, because this is only for company’s product)<br />Served Market Share is always greater than Overall<br />MG 220 Marketing Management<br />7<br />
  8. 8. Measuring Marketing ProductivityMeasuring Marketing Plan Performance<br />2. MARKET SHARE ANALYSIS (…contd)<br />Relative Market Shareis the company’s market share compared to its largest competitor<br />If <100: company is follower<br />If 100: tie as market leader<br />If >100: company is market leader<br />Limitations in Market Share Analysis<br />Outside factors affect everyone equally?<br />Company’s performance against overall average of its competitors<br />New firm entering => dec. in market share (its not bad performance)<br />If market share is engineered to focus away from unprofitable segments<br />anomalies<br />MG 220 Marketing Management<br />8<br />
  9. 9. Measuring Marketing ProductivityMeasuring Marketing Plan Performance<br />3. MARKETING EXPENSE-TO-SALES ANALYSIS<br />Key ratio to be analyzed<br />Very important to see its variance, cause and effect etc.<br />MG 220 Marketing Management<br />9<br />
  10. 10. Measuring Marketing ProductivityMeasuring Marketing Plan Performance<br />4. Financial Analysis<br />Financial ratios should be reviewed to understand where the performance is coming from<br />MG 220 Marketing Management<br />10<br />
  11. 11. Measuring Marketing ProductivityMarketing-Mix Modeling<br />See the 4Ps Financially<br />Review all data related to 4Ps and understand effects of different marketing activities<br />Non-financial activity to be done primarily by marketing team<br />MG 220 Marketing Management<br />11<br />
  12. 12. Forecast and Demand MeasurementConcept<br />Review concepts related to demand in more depth<br />Focus on analysis and forecasting<br />MG 220 Marketing Management<br />12<br />
  13. 13. QUIZ # 1 | 23 Aug 2010<br />RESULTS<br />MG 220 Marketing Management<br />13<br />
  14. 14. Part 2: Capturing Market Insights<br />> Forecasting and Demand Measurement<br />> Review of Part 2<br />Class Presentation | Session 7 | 25 Aug 2010<br />

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