Measuring Marketing

Productivity
M A R K ETI N G M A N A G E M E N T
Measuring Marketing Productivity
• Measuring marketing productivity is the process of evaluating how
well your marketing activities and campaigns are achieving your
desired goals and outcomes.

• Two complementary approaches to measuring marketing productivity

are:
• (1) marketing metrics to assess marketing effects and
• (2) marketing-mix modeling to estimate causal relationships and
measure how marketing activity affects outcomes.
Marketing Metrics
• Marketing metrics is the set of measures that helps marketers quantify,
compare, and interpret their performance.

Example
• The CMO of Mary Kay cosmetics would focus on four long-term
brand strength metrics—market awareness, consideration, trial, and
12-month beauty consultant productivity—as well as a number of
short-term program-specific metrics like ad impressions, Web site
traffic, and purchase conversion.
Sample Marketing Metrics

I. External II. Internal

Awareness Awareness of goals

Market share (volume or value) Commitment to goals

Consumer satisfaction Staffing/skill levels

Loyalty/retention Autonomy

Esteem Freedom to fail

Distribution/availability Desire to learn

Marketing-Mix Modeling

• Marketing-mix models analyze data from a variety of sources, such as

retailer scanner data, company shipment data, pricing, media, and
promotion spending data, to understand more precisely the effects of
specific marketing activities.
 Marketing Dashboards
• Marketing dashboards are “a concise set of interconnected performance drivers to
be viewed in common throughout the organization. ”

• For example,
CMO Dashboard
Thank You