In the present business world, thriving for success and profits is an extreme challenge, exceptional marketing is no accident it is result of precise execution and planning ,but how marketers know which marketing strategy is well fit for the organisation ?
At this stage the marketing metrics come’s in to play. Organisational managers use a wide range of marketing metrics to measure and evaluate the performance of the brand in the market.
What is a Metric?
A Metric is a measuring system that qualifies a trend , dynamic or a characteristic(Farris, P. 2015).
The metric has become a measurable indicator to improve quality level, quantity or financial categories. (Kerzner, 2011) describes the metric as a numerical measure (usually in financial units) representing a part of business data in a specific area.
Why do we need it ?
The marketing metric has become a measurement system, quantifying dynamic and/or static characteristics. In both business and research, marketing metrics include defining objectives, measuring the degree of completion and providing the feedback on processes subject to change. In general, metrics are considered as a standard of measurement and they are used as a corresponding benchmark (Farris et al., 2010; Peters et al., 2013; Ahi & Searcy, 2015)
“I often say that when you can measure what you are speaking about, and express it in numbers, you know something about it; but when you cannot express it in numbers, your knowledge is of a meagre and unsatisfactory kind; it may be the beginning of knowledge, but you have scarcely, in your thoughts, advanced to the stage of science, whatever the matter may be”. (Lord Kevin 1994)
By far from many years the numerical fluency has been playing very crucial role in the business and helped the managers to quantify the market opportunities and competitive threats.
The above image shows the marketing financial and non-financial metrics.
Profitable sales are the ultimate aim of any organisational marketing campaign. Companies use financial metrics to measure sales revenues, minimize overhead expenses, maximizing gross margins and managing investments to appropriate risk and expected returns (Lenskold, 2003).Amazon which is known for its innovative marketing strategy has surged it profits to 107 billion us dollars. Below image shows the net profits of the company from 2004 to 2015
Amazon which is known for its innovative marketing strategy has surged it profits to 107 billion us dollars. Below image shows the net profits of the company from 2004 to 2015
Innovative marketing campaign gave a rise in sales and good returns for the stakeholders .
Behavioural metrics and Memory metrics
The behavioural metrics consist of Sales of the brand, Share of the brand in the market, Market penetration, and Purchase frequency, Share of the category requirements.
Where in memory metrics mostly focused on brand and its awareness and to what extent is customer satisfied with the brand?
Marketing mastermind Red bull an Austria-based energy drinks company created market for energy drinks. Red bulls market share is shown in the image below.
Social media platform used by Red bull to win the market, Red bull strategically marketed its brand by sponsoring sporting events and owning the sporting teams. Continuous marketing of brand through the television media and digital media gave Red bull a cutting edge over its competitors.
In 2015 Red bull sold about 5.9 billion cans sold worldwide with a soaring sales profit of 15.5% increase from EUR 5.110 billion to EUR 5.903 billion
Physical Availability Metrics
In any given business availability of services and products to customers increases the sale and increases the market share, the most important factor of a company is to find the way to reach to the customers. The supermarket giant Countdown unveils $500m expansion plan for next few years.
Countdowns Click and Collect strategy serves 80,000 customers daily and receiving around 20,000 (New Zealand Herald) online orders weekly. Online shopping strategy gave a cutting edge on sales over its competitors.
Marketing activity and Consumer profile metrics
Companies should keep a track on its marketing activities to know the progress of activities. From a business perspective view ,it’s important for any organisations to know the customer well.
Sporting brand Addidas uses dashboards to know analyse brnad engangment with its customers through various social media.
http://Rust, R, Ambler, T, Carpenter, G, Kumar, V, & Srivastava, R 2004, ‘Measuring Marketing Productivity: Current Knowledge and Future Directions’, Journal Of Marketing, 68, 4, pp. 76-89, Business Source Complete, EBSCOhost, viewed 25 September 2016.
Milichovsky, F, & Simberova, I 2015, ‘Marketing Effectiveness: Metrics for Effective Strategic Marketing’, Engineering Economics, 26, 2, pp. 211-219, Business Source Complete, EBSCOhost, viewed 26 September 2016.
Krishna Chittimalla (216326017)