Marketing Performance Metrics + Ch2 & 15 Flashcards
Financial performance evaluation (internal)
Sales revenue
Return on sales
Gross and net profit
Assets
Return on assets
Market-based performance evaluation (external)
Market & sales growth
Market share
Customer retention & acquisition
Customer satisfaction
Relative product/service quality
Four types of marketing performance metrics (MCCM)
Market metrics
Customer metrics
Competitiveness metrics
Marketing profitability metrics
Market Metrics
Measure a market
Current performance & profit impact
Market growth, share
Customer metrics
Measure customer evaluations and perceptions
Customer retention, satisfaction, NET promoter score
Competitiveness metrics
Performance metrics relative to benchmark competitors
Relative product performance, service quality, customer value
Marketing profitability metrics
ROI - a percentage metric that can be compared with that of its competitors to benchmark itself
Importance of marketing performance metrics
Correlated with long-term profitability
They are an indicator for future financial performance
Forward-looking metrics (CPIC)
Metrics at the beginning of a period
Provide key early warning signals
Customer awareness
Perceived performance
Intent to repurchase
Customer satisfaction
Backwards-looking metrics
Metrics at the end of a period
Market share
Relative market share
Revenue per customer
Customer retention
Marketing profitability and ratio metrics
Net profit (before taxes)
Net marketing contribution (NMC)
Marketing return on sales (ROS)
Marketing return on investment (ROI)
NMC
Marketing ROS
Computes marketing profitability as a percent of sales
Marketing ROI
Computes marketing profitability as a percent of expenses
Six strategies to increase NMC (MMCCAC)
Market growth strategy
Market share strategy
Customer revenue strategy
Cost reduction strategy
Advertising strategy
Channel strategy
Market growth strategy
Bringing more customers into the market while maintaining market share
