Lecture "Marketing metrics - Chapter 1+2: Overview of marketing metric, developing marketing metrics system" presentation of content: What’s a metric, the need of measuring marketing performance,. and other content. | 9/18/2015 • “If you can’t measure it, you can’t manage it” (Kaplan, Robert & David P. Norton, 1996) Objectives • Marketing: Art vs. science • Setting feasible marketing target • Quantify marketing performance • Evaluating marketing accomplishment • Comparing marketing effectiveness among competitors in the market. 1 9/18/2015 Materials Contents • Chapter 1: Overview of marketing metrics • Chapter 2: Developing marketing metrics system • Chapter 3: Market & Sales forecast • Chapter 4: Non-financial metrics • Chapter 5: Financial metrics Overview of marketing metrics 2 9/18/2015 Contents • What’s a metric. • The need of measuring marketing performance Marketer’s challenges • Empowered customers • Fractured media • Continuing growth • Extensive competition • Demand for effectiveness and accountability Metrics • A measure system that quantifies a trend, dynamic or characteristic. 3 9/18/2015 Roles & functions • To assess past situations: ◦ Explain phenomena ◦ Diagnose causes ◦ Share findings • To forecast the future ◦ To project results of future events Benefits • Focus on the key performance criteria. • Better vision. • Better decisions. • Raising marketing’s role, influence and stature in the company. • Better buy in and support from other departments. • Better performance Limitation and difficulty • Availability of data ◦ Permission, privacy ◦ Ability to access • Sources of data ◦ Bias • Accuracy ◦ Methodology to collect data 4 9/18/2015 Developing a marketing metrics system Contents • Data needed for developing marketing metrics system • Building process for measuring marketing activities Type of metrics • Activity-based metrics: track and assess marketing activities • Operations performance metrics: evaluate performance of marketing department • Outcome-based metrics: measure marketing efforts to defined objectives • Leading-indicator metrics: help company in making strategic .
