Marketing metrics are a set of performance indicators that allows the business to assess their overall marketing performance over time and help achieve greater accuracy in business activities (Milichovsky & Simberova 2015). The success of a business lies in its marketing abilities (Low, Gao & Mohdari 2016) and marketing plays a significant role in this. The marketing metrics are categorized as Financial, Behavioral, Mental, Memory, Consumer profile and physical availability. Let’s discuss them with respect to Apple Inc.
Founded by Steve Jobs, Apple Inc. based in Cupertino, USA is one of the largest technology company in the world (Chen 2015) and becoming the first US Company to be valued over $700 bn (Higgins, Ciolli & Bost, 2014).
Source – Apple Inc.
Financial Metrics are financial figures derived from financial statements (Chabowski & Hult 2013) that helps a company to determines its market position with respect to its sales, revenues, profit etc. Apples profit margin are poised to decline mainly due to lower sales worrying the investors considerably (Patrick 2016). This forecast overshadows Apples increased revenue income and puts pressure on them to bow to shareholder anxiety and invest more on their innovation to stem the lowering sales. But overall the huge revenue allows them to focus on new innovations and bringing shareholder satisfaction.
Behavioral Metrics relates to a company’s market penetration, market share, products sold, purchase frequency etc. (Banasiewicz 2013). Apple is losing its market share in PC sales (Meyer 2016) falling behind Lenovo while they face stiff competition from Samsung who rules in smartphone market share but on the other hand its latest entry Apple Watch is beginning to dominate the smartwatch sector beating competition from Google wear devices and Samsung Gear S2 (Tilley 2016). In terms of market penetration, due to the high price they place on its products, customers flock to their rivals who places lower prices for almost similar specifications. The one area where apple thrives is its ability to retain its customer by promoting greater customer experience with its products.
Memory and Mental Metrics deals with brand awareness, Customer satisfaction etc. Consumers identify themselves with the brand they consume One of the success behind Apple has been the mass following of customers who identifies with Apple brand (Belk & Tumbat, 2005). The company has been able beat its rivals by making the consumers interested and inspired with latest innovations and this has helped in consumers being able to identify with the brand “Apple”. In almost all technology domains the brand name on everyone’s tongue is Apple which leads to higher customer retention, purchase frequency etc. when it comes to customer satisfaction Apple ties with Samsung in the smartphone sector (Oliver 2015) with most Apple consumers happy with the services Apple provides highlighting the importance apple places on its customer satisfaction. Customers fall in love with the sleek finish of Apple products resulting in more customer retention.
A major necessity for brand growth is physical availability of products. This is one area I believe Apple can do more as barring a few stores the availability of Apple products lags behind some of its nearest rivals. A brand stays more in the minds of consumers when it is easily seen and in the select stores where they are available, Apple products are placed in such a manner that they are easily seen by any prospective buyer resulting in more purchases and thus market share.
Consumers are the soul of any company and hence consumer profile metric is very important for any marketer as they help identify their core customer base including the age, income etc. Historically, the Apple brand has been favored by the economically elite section. About 67% of the household owning apple products earn double to non-apple households (Metafacts 2009). This is mainly due to the high price on most products that acts as a deterrent to lower earning households. Also most owners of the Apple products have attained higher education levels. The products find more takers among the youth who like to equate with the style and cool look that Apple epitomizes and to differentiate from the older generations.
A marketing dashboard helps Apple to analyze its customer based performance which over the years they have been able to excel in highlighted by its ability to retain its core customers and also shareholder related measures to keep them satisfied. These when taken together paints a detailed picture about Apple as a whole.
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Banasiewicz, AD 2013, Marketing Database Analytics. [electronic resource] : Transforming Data for Competitive Advantage, Hoboken : Taylor and Francis, 2013.
Belk, R., & Tumbat, G. (2005). The cult of Macintosh. Consumption Markets and Culture, 8, 205–217.
Chabowski, BR & Hult, GTM 2013, ‘EVALUATING COMPETITIVE ADVANTAGE AND PERFORMANCE: HOW DO MARKETING ASSETS AND FINANCIAL METRICS INTERRELATE?’, AMA Winter Educators’ Conference Proceedings, vol. 24, pp. 307-.
Chen, Liyan (May 11, 2015). “The World’s Largest Tech Companies: Apple Beats Samsung, Microsoft, Google”. Forbes.
Higgins, T, Ciolli, J & Bost, C 2014, “Apple Inc. market cap tops US$700B, double what it was when Tim Cook took over as CEO”. Financial Post.
Oliver, S 2014. “Apple, Samsung tied for highest smartphone customer satisfaction”
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Metafacts 2009, “Just how different” and elite are Apple customers – socioeconomically, behaviorally, and attitudinally?
Meyer, D 2016, ‘Apple’s MacBooks Lose Market Share as PC Shipments Decline Again’, Fortune.com, pp. 1-.
Milichovsky, F & Simberova, I 2015, ‘Marketing Effectiveness: Metrics for Effective Strategic Marketing’, Engineering Economics, vol. 26, no. 2, pp. 211-9.
Patrick, S 2016, ‘Another Apple investor concern: Gross margin declines’, Investors Business Daily, p. 00.
Tilley, A 2016, ‘Apple Watch Takes Up More Than Half The Smartwatch Market’, Forbes.com, pp. 2-.