Marketing Metrics : Note for Marketing

Managers

Marketing Analytics
Assignment - II
By
T RAMA NAMBI RAJAN
16PGM36
Summary

Generally, marketers were criticized for spending without knowing the actual ROI and mostly the
company wants to limit the marketing spend when in a crush. The cause for all these is that the
marketers strategize tactics but without the knowledge of metrics. The metrics can better result in an
analysis to understand the ROI and ROMI. Such metrics must be adopted and a wise analysis of the
metrics can provide a clear visibility of the marketing strategy that was adopted.

The metrics can be classified as follows,

1. Internal Metrics (CPC, CPM, Payback Period, conversion, cannibalization) and

2. External Metrics (CTR, Brand awareness, Brand Preference, Market Share etc.)

Similarly the other classification can be,

1. Intermediate metrics (CPC, CPM, CTR, Brand awareness, Brand Preference) and
2. End- Result Metrics (Payback Period, conversion, cannibalization, Market Share)

On the other hand the goal setting has to be consistent and it has got three stages. Namely,

1. Conservative – Exposed to analyst and business press

2. Actual – Real target
3. Stretch – Encourage employees to increase numbers

Overall Metrics

Return on Marketing Investment focuses only on the incremental profit and costs that can be
attributed to a specific marketing campaign. It is the derivative of ROI.

Payback Period is the projected length of time until the marketing strategy pays off.

Market Share is the percentage sales in the entire market as the company sees it.

Customer Life time value – Find out overall profit given by the customer to company. Customer
retention rate and margin per person are two metrics.

Net Promoter Score is a metric closely related to customer satisfaction as it happens to find out the
customer satisfaction level on a scale of 1 to 5 or 0 to 10 etc.

Promotional Metrics

Brand awareness – First step in building customer associations and purchase intentions.

Brand preference – This should be measured within the specific target audience and this gives the
possibility of customers choosing our products over our competitors

Purchase Intentions – This tells us whether customers will buy our products or not in near future.
Brand Equity – This tells the value provided by company to customers.

Cost per impression - This gives the cost efficiency of promotional messages by exposing to customers
through online.

Pricing Metrics

Percentage sale on deal – This gives the count of products sold when discount was given.

Minimum advertised price - Incentives are given from manufactures to retailers to advertise their brand
at lowest price.

Initial markup factor - A constant value company’s use to multiply product price to arrive at retail price

Channel Metrics

All commodity value – This is a percentage of relevant retailer sales that occur within retailers for that
particular brand.

Average items carried – Stock keeping units carried in stores that sells brand’s products.

Shelf space - Portion of shelf given to brand in that category.

Inventory turns – Measure of the units sold by the company in a year

Gross margin return on inventory investment – This tells how much percentage of gross margin
generated contributes to other business expenses and investments

Same store sales – Percentage of sales compared to previous year

Traffic – Measure of people visiting a retail store or website including buyers and non buyers.

Conversions – Measure of people buying your product or transaction.

Product superiority – Confirms if customers believe that their product is both unique and superior than
its competitors.

Cannibalization – This measures the percentage of sales of new product that have come at the cost of
sales of old product.