Marketing Analytics

Marketing Analytics
HIMANTH ESAR APU

What? Why? How?
Share of Hearts, Minds and Markets
Market Share:
▪Unit Market Share (volume share) = Unit Sales/Total Market Unit Sales
▪Revenue Market Share (value share) = Sales Revenue/Total Market Revenue
▪Are the increase in numbers signs of real growth?
▪How important are time frames and demographics in understanding market share (served market)?
Relative Market Share:
▪Relative Market Share: Brand’s Market Share/Largest competitor’s Market Share

▪ Market Concentration: How small number of firms accommodate for more market share
▪Herfindahl - Hirschman Index: Sum of squares of market shares of companies in a market
▪Higher the number lesser the competition. Values ranging from 1 to 10000
HHI = S1^2 + S2^2 + S3^2 +……+Sn^2

Brand Development Index:
❑BDI = (Brand sales to group/Households in group)/(Total Brand sales/Total Households)
Category Development Index:
❑CDI = (Category sales to group/Households in group)/(Total Category Sales/Total Households)
❑CDI (retailer version) = Retailers share of category sales/Retailers Total share of market
Market and Brand Penetration:
❑Market Penetration = Customers who have purchased a product in the category/Total Population
❑Brand Penetration= Customers who have purchased the brand/Total Population
❑Penetration share= Customers who have purchased the brand/Customers who have purchased a
product in the category
❑To snatch customers from competitors or to increase the population you serve?
▪Share of requirements:
❑Unit Share of requirements = Brand purchases/Total category purchases by brand buyers
❑Revenue Share of requirements = Brand purchases ($)/Total category purchases by brand buyers ($)
❑Used for loyalty measurements

❑Sole Usage Percentage: Customers who buy only the brand in question/Total Brand Customers
❑Number of brands purchased: In a given period, customers may buy only a single brand with in a
category, whereas others buy 2 or more. This measure is used to calculate the loyalty of a brand
compared to the average.
❑Repeat Rate : % of brand customers in a given period who are also brand customers in subsequent
period
❑Repurchase rate : % of customers for a brand who repurchase that brand on the next purchase
ocassion
Usage Index:
❑Average Total Purchases in category by Brand customers/Average total purchases in category by all
customers for that category
❑Usage Index doesn’t indicate how heavily customers use the brand but how heavy they use the
category
Awareness, Attitudes and Usage : Hierarchy of effects
Awareness and Knowledge:
❑Awareness: % of potential customers who recognize a given brand. “have you heard of Boat?”
❑Top of Mind: First brand that comes to your mind in a category
❑Ad Awareness: % of TG who have awareness of a brand’s advertising.
❑Brand Knowledge: % of surveyed customers who have knowledge about brand.

Attitudes:
❑Attitudes/liking/Image: Rating on a scale, 1-5 or 1-10 for questions like “This brand is for people like
me or not”. It gives relevance to customer.
❑Perceived value for money: How much does the brand carry good value for money.
❑Perceived Quality/Esteem: German Cars
❑Relative perceived quality: When compared to other brands
❑Intentions: Measure of customers state of willingness to switch brands
❑Purchase Intentions: When will you likely purchase this product

Usage:
❑A customers self reported behaviour
❑Questions what was purchased, when it was purchased, where it was purchased and how many
times it was used and purchased etc
Sources:
❑Lucky draw, prizes, warranty cards, tele call, online surveys etc
❑You need to account to noise in the surveys
❑Adjust for periodic changes in how questions are framed, if there is a significant deviation then you
have to determine whether methodological shifts might play a result
❑Separate customer from non-customer responses
❑Separate leading from lagging indicators: Like showing ads to people who purchased new cars
Q Score:
❑To measure familiarity and appeal of a brand, celebrity or company or entertainment product
Customer Satisfaction and willingness to recommend:
❑Is knowing Market share important or Customer satisfaction?

❑Willingness to recommend
❑CSAT is usually taken at a individual level but reported at an overall level
❑Response bias! Happy customers won’t respond, but disgruntled customers respond!
❑Sample selection
❑Rising expectations is difficult to satisfy! Oneplus and iPhone

Net Promoter:
❑Measure of degree to which current customers will recommend a product or company
❑NPS is a registered trademark of Fredreick R Reichheld, Bain & Company and Satmetrix
❑Based on responses customers are classified into:
1) Promoters (9-10 rating)
2) Passives: (7-8 rating)
3) Detractors: (0-6 rating)

❑One should carefully monitor NPS an increase doesn’t mean the customers are satisfied
❑It might be because customers might have moved from your company!
Willingness to search:
❑The biggest question this answers is “Will customers search for my brand when they don’t find in the
usual place ? Or will they replace with best available option?”
❑Will you search for fevicol or fevikwick substitute?
❑Depends on scenarios how important or urgent it is? Even demographics play a role!

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HIMANTH ESAR APU

▪Revenue Market Share (value share) = Sales Revenue/Total Market Revenue

▪Are the increase in numbers signs of real growth?

▪Relative Market Share: Brand’s Market Share/Largest competitor’s Market Share

▪Herfindahl - Hirschman Index: Sum of squares of market shares of companies in a market

HHI = S1^2 + S2^2 + S3^2 +……+Sn^2

❑BDI = (Brand sales to group/Households in group)/(Total Brand sales/Total Households)

Category Development Index:

❑CDI = (Category sales to group/Households in group)/(Total Category Sales/Total Households)

❑Brand Penetration= Customers who have purchased the brand/Total Population

❑Unit Share of requirements = Brand purchases/Total category purchases by brand buyers

❑Used for loyalty measurements

❑Top of Mind: First brand that comes to your mind in a category

❑Ad Awareness: % of TG who have awareness of a brand’s advertising.

❑Brand Knowledge: % of surveyed customers who have knowledge about brand.

❑Perceived Quality/Esteem: German Cars

❑Relative perceived quality: When compared to other brands

❑Intentions: Measure of customers state of willingness to switch brands

❑Purchase Intentions: When will you likely purchase this product

❑A customers self reported behaviour

❑Separate customer from non-customer responses

❑Is knowing Market share important or Customer satisfaction?

❑CSAT is usually taken at a individual level but reported at an overall level

❑Rising expectations is difficult to satisfy! Oneplus and iPhone

❑Measure of degree to which current customers will recommend a product or company

❑Based on responses customers are classified into:

1) Promoters (9-10 rating)

2) Passives: (7-8 rating)

3) Detractors: (0-6 rating)

❑Will you search for fevicol or fevikwick substitute?

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