Marketing Analytics

PPT-9 (Marketing Metrics X-Ray)

Naveed Ilyas
Visiting Faculty
Institute of Business Management

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 Module 4:
Systems of
Metrics and
Marketing
Dashboard

Ch - 9

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Problem 1

• On which firm would you bet your grandparent’s savings?

• Assume that your grandparent wants to buy a

partnership in one of these firms

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Advertising Media and Web Metrics

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Problem 1

• Gross margins are same

• Boom’s sales and marketing spending are growing faster

, its return on Sales and Return on investment are
declining

• On the basis of the information, most people choose

Cruise

• Now, lets look at another table !!

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Problem 1

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Problem 1

• Observations
• Boom’s spending on marketing looks a lot better because
we now know that spending was used to generate new
customers and keep old ones.

• Boom acquires new customers at a lower cost than Cruise

• Curise’s customers spend more, Boom’s stay around longer

• Under the assumption of constant margins, retention rates

and 15% discount rate, we can calculate the CLV.

• Difference between the CLV and acquisition cost is

only$3.71 for Cruise but is $48.21 for Boom.

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Problem 2

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Problem 2

• Apparently, the company seems to be doing quite well.

• Unit and dollar sales are growing rapidly

• Margins before marketing are stable and quite robust
• Marketing spending and marketing to sales ratios are
growing and so is the bottom line

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 Problem 2

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 Problem 2

• Observations
• Growth is coming from two sources (an expanding number
of outlets stocking the brand and an increase (more than
four fold) in price promotions.
• Sales per retail store are already declining
• Promotional pricing by the manufacturer seems to be
encouraging individuals store’s inventories to grow.
• Soon, retailers may become irritated that GMROII (Gross
margin return on inventory investment) has declined
• The broadening of distribution and the increase of sales on
deal suggest a possible change in how potential consumers
view the previously exclusive image of the brand

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 Marketing Dashboard

• A graphical presentation of the metrics

• The basic notion seems to be that the manner of

presenting complex data can influence management’s
ability to recognize key patterns and trends.

• Ideally, a dashboard is supposed to provide a reduced

set of the vital measures in a form that is easy for the
operator to interpret and use.

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 Dashboard

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 Dashboard

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 Marketing Dashboard

• Observation
• Reveals strong sales growth while maintaining margins even
though selling less expensive items.
• GMROII (Gross Margin Return on Inventory Investment) has
fallen while store inventories have grown
• Sales per store have similarly dropped
• The price premium that prestige luggage can command has
fallen, and more of the company’s sales are on deal

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 Marketing Dashboard

FEEDBACK TIME !!!!

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 Assignment

 
•Term Project

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 Thank You

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