Measuring marketing Performance

Hartini

The role of financial analysis

Profit Ratios : Gross profit margin, net profit margin, return on total assets, return on shareholder equity Liquidity Ratio :Current ratio, quick ratio, inventory to net working capital Leverage ratios: Debt to assets; long term debt to equity Activity Ratio : Inventory turnover, Fixed asset turnover, average collection period

Measuring the impact of promotions

Marketing metrics
The adaptability or innovativeness of an organisation : - Changing customer preferences - demographic shifts - new offering from competitor - changing cultural and social dimensions - Changing technology - Changing service expectation

To respond such change, Organisation needs to measure its success in the following area - New product success rate -new service delivery success rate - The number of trademark registered - percentage of income derived from new products the last 5 years -Success of new product compared with the comp - The number of research and develop product - The number of new brands acquired - Assessment of changing pricing levels

Efficiency - Capacity utilisation - Research and development productivity - Percentage employee turnover - Distribution level of efficiency - Inventory levels - Speed of service delivery - Productivity per employee - Return on Investment

Effectiveness Unit sales Market share by unit and Volume Market share by segment Number of customers Customer loyalty Customer complaint Relative quality Relative value

Brand Equity Customer preferences Purchase intent Brand value Brand strength Level of trust in the brand Brand image

Towards an integrated model

Specific measure here include customer retention, sales improvement and image enhancement Three key measured used in the model such : customer life time value, the total number of customer acquired through marketing invesments. The marketing expense incurred to generate returns

Measuring the impact of promotions

Consumer promotion ( trial ,firs purchase, repurchase.loyalty,reduce price,increase quantity consume,purchase frequency ) Distribution promotion (List of new product,stock,facing increase,point of purchase display) Commercial promotions ( visit to outlets,customer retention,purchase growth) Network promotions (increase of quantity sold,gain in distribution presence,introduction of new products, reselling actions)

Measuring environmental performance

Reduce material intensity Reduce energy intencity Reduce dispersion of toxic substances Enhanced recyclability Maximised use renewables Extended product life Increase service intensity

Developing appropriate measures

Suitable Acceptability Feasibility