Marketing Performance

Measurement

Session 17

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In this Course

Understanding Creating Value Delivering Value

Value • Marketing Strategy • Gaining New Business
• Introduction • Managing Product & • Personal Selling
• Organisational Buying Brands • Marketing
Behaviour • Managing Channels Performance
• Segmentation & • Managing Marketing Measurement
Market Opportunities Communication • Customer Relationship
• B2B Digital Marketing Management
• Managing Pricing

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 In this Session
Introduction - MPF

Levels of Marketing Control

Efficiency and Effectiveness Control

Market Performance Dashboard

Tools for measuring Performance/ Variance

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Market Performance Measurements

(MPM)
Is a business strategy that provides performance
feedback regarding the results of marketing efforts.
Companies with strong MPM programs
outperformed competitors.
After allocating resources, it is important to compare
actual to planned and analyse the differences.
Address deviations above/below planned.

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 Level of Marketing Controls

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Efficiency and Effectiveness Control-

Product related
Sales by market segments
Sales relative to potential
Sales growth rates
Market share
Contribution margin
Percentage of total profits
Return on investment

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 Efficiency and Effectiveness Control-
Place related
Sales, expenses, and contribution by channel type
Sales and contribution margin by intermediary type
and individual intermediaries
Sales relative to market potential by channel,
intermediary type, and specific intermediaries
Expense-to-sales ratio by channel
Logistics cost by logistics activity by channel

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Efficiency and Effectiveness Control-

Promotion related
Advertising effectiveness by media type
Actual audience/target audience ratio
Cost per contact
Number of calls, enquiries, and information
requests by media type
Revenue per sales call
Sales per territory relative to potential sales
Selling expenses to sales ratios
New accounts per time period
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 Efficiency and Effectiveness Control-
Pricing related
Price changes relative to sales volume
Discount structure related to sales volume
Bid strategy related to new contracts
Margin structure related to marketing expenses
General price policy related to sales volume
Margins related to channel member performance

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Market Performance Dashboard

A list of key metrics that provides management
with information to track progress on marketing
performance to business outcomes.
Dashboard metrics
 Which metrics matter?
 Isolate key performance drivers
 Metrics suggest a course of action
 View of marketing’s value to the business
 Better alignment of marketing with the business
 Translate measures into meaningful information

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 Tools for measuring Performance:
Output And Input Tools Of Control
Standard
Setting Process Pros Cons Comment
Benchmarking Can learn and Hard to find Can use industry
improve someone willing to association
let you benchmark measures
Quotas and Easy to Can be difficult to Consider
Targets establish account for variance sources of
variance when
setting
Budgets and Easy to Lack of flexibility Create systems
Pricing Plans establish can lead to missed for opportunity
opportunities evaluation

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Tools for measuring Performance:

Three Measurement Tools
Measurement
Tools Pro Con Comment Sources of Data
Marketing Complete Difficult and Most beneficial Observation and
Audits process time- when done survey in the field
review consuming regularly but by the auditors
not frequently
Customer Can be a Challenge to Used as a Surveys of
Satisfaction predictor of find what or measure of customers,
Measurement future sales who caused performance including decision
(dis)satisfac- makers and users
tion
Accounting Enables Hard to apply Use a variety to Transaction systems
Systems allocation of to specific understand such as accounts
fixed costs customers customer and receivable,
product shipping, and
profitability manufacturing
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 Tools for measuring Performance:
Five Search Tools For Identifying Variance
Search Tools Pro Con Comment Sources of Data
Reporting Method of Can get Companies are Salespeople, trade show
Systems information tradition-bound moving to real-time managers, other marketing
sharing across systems like managers, as well as
work-groups dashboards transaction systems

Information Self-serve Difficult to get Increasing use of data Surveys, transaction systems,
Systems reporting data into a warehouses lets and third-party sources such
format everyone managers access data as Dun & Bradstreet
can use directly

Case Analysis Method of Can be hard to Look for underlying Interviews of people
organizational apply learning to principles of success involved
learning new situations or failure

Experimentation Establishes Hard to control Used more frequently Marketing systems that
cause and effect for all potential with CRM systems track source of sale
causes
Statistical Can inform Can lead to Often combined with All of the above
Analysis forecasts, as well incremental, experimentation for
as explain past rather than more powerful
success innovative, decision-making
thinking
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To recap
Introduction - MPF
Levels of Marketing Control
Efficiency and Effectiveness Control
 Product related
 Place related
 Promotion related
 Pricing related
Market Performance Dashboard
Tools for measuring Performance/ Variance
 Output & Input Tools of Control
 Measurement Tools
 Tools for identifying variance

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