MARKETING ANALYTICS AND METRICS

Chapter 2
Share of hearts, minds, and markets

Submitted By:
Group 9
PGP10003 Abhishek Singh
PGP10044 Sambhrant Sadh
PGP10082 Gaurav Kumar
PGP10083 G Bhavana Sravanthi
PGP10069 Anisha Gogoi
PGP10093 Mayank Kashyap
PGP10061 Meet Unadkat
 Summary
The chapter highlights the dynamics of market share, measures of major factors such as
awareness, attitude, and usage in the decision-making process by which customers select one
brand over another. The customer satisfaction with products of a firm or brand, which has
been quantified for developing firm’s future strategies. Finally, metrics measuring the depth
of consumer preference and satisfaction, including customers’ willingness to search and
recommend that brand to others. These major indicators are utilized by a firm for further
success.

 Market Share: The percentage of a market accounted for by a specific entity. Defined as
unit market share or revenue market share. It is an indicator of how well a firm is doing
against its competitors. It evaluates total market growth or decline and trends in
customers’ selections among competitors

 Relative market share: It indexes a firm’s market share against that of its leading
competitor. It is to evaluate a firm’s success and its position in the market. This metric
can be further assessed by BCG matrix(growth-share matrix)

 Brand Development Index (BDI) and Category Development Index (CDI): BDI
quantifies how well a brand is performing within a specific group of customers,
compared with its average performance among all consumers. CDI measures the sales
performance of a category of goods or services within a specific group, compared with
its average performance among all consumers.

 BDI and CDI indices help in understanding the relative performance of a brand or
category within specified customer groups

 Penetration: It is the proportion of people in the relevant population who bought (at least
once in the period) a specific brand or a category of goods indicating the brand’s/
category’s popularity or acceptance in defined population

 Penetration share: The share of category households that bought the brand

 Market share focuses on the sales of a product (either units or dollars), while penetration
focuses on the number of buyers

 Share of Requirements: The brand purchases as a percentage of total category purchases

by buyers of that brand which indicates the loyalty of the existing customers of that
brand. This metric is used to recognise the source of market share, extent of category
usage

 Repeat Rate: The percentage of brand customers in a given period who are also brand
customers in the subsequent period

 Repurchase Rate: The percentage of brand customers who repurchase that brand on their
next purchase instance
 Usage Index: It denotes how frequently the customers of given brand use the product
category. It is the ratio of average total purchases in category by brand consumers to
average total purchases of all consumers for that category

 Market share can be denoted as the product of penetration share, share of requirements,
and usage index

 Awareness, Attitudes, and Usage (AAU) - Metrics of the Hierarchy of Effects: AAU
metric is to quantify the levels, and changes in customer awareness, attitudes, and
behaviours

 Depending on which the consumer is incited by product’s category, brand,

advertising, usage situation, the awareness level varies
 Measure of attitude concern customer response/ intentions to a brand or
product
 The frequency of purchase and quantity purchased are measured in order to
identify heavy users

 Customer satisfaction: Typically uses survey data and is represented in the form of a
rating, in which customers declare their satisfaction with brand in general or specific
attributes. Indicates the likelihood of repurchase and the aspects that are lacking in the
product

 Willingness to recommend: When a customer is satisfied with a product, they can

recommend the product to others. It displays loyalty and potential impact on others

 Net Promoter: It is the measure of the degree to which current customers will
recommend a product, service, or company. It indicates how well the brand or company
is succeeding in creating satisfied, loyal customers

 Net Promoter Score is the measure of the satisfaction/loyalty of current customers i.e.
difference between the percentage of promoters and percentage of detractors

 Willingness to search: It is the percentage of customers willing to delay purchases,

change stores, or reduce purchase quantities to avoid switching brands. It assesses the
commitment of a firm’s or a brand’s customer base

 Neuroscience measures: Using technology to understand the consumer behaviour.

Neuro-marketing measures are more capable than brand equity measures to indicate
greater insights about the consumers’ experience. This indicates the reactions that
consumers find hard to articulate

The important neuroscience measures -

 EEG units of measurement – Measurement of brain waves
 fMRI measurement - The consumer will usually be shown stimuli and their brain
responses monitored
 Facial Action Coding System (FACS) - Identifying the consumer’s mood/reaction
through his or her facial movements
 Eye Tracking Measures: Fixations per second, saccades (eye movements), pupil
size, and blinks per second