Key Marketing Metrics to Facilitate Marketing Strategy.

The Strengths and Weaknesses of any existing business is through the eyes of the Customers. To find out what the Competitors are doing can all be realized when Businesses are able to monitor marketing metrics. If something is important to a Company, people are going to want to know how the Company does it and therefore it needs to be measured (Iacobucci, 2013)

In the conduction of these measures, it is very crucial for a Business to conduct an assessment phase and the strategic planning phase. Below are some of the measures that a Company may conduct over the Company goals.

  1. The Company needs to keep a close watch on the company’s profitability and must be able to measure this.
  2. The Company must also measure indicators of customer and employee satisfaction
  3. There has also been measures made on the Company’s dashboard. This may include other operating costs such as spending made on fuel and many other multiple dimensions in which can be measured.

Such measures can confirm whether a Company is performing and whether it has advantages over its competitors whilst other measure may confirm existing problems that the Company may strive to improve.

A single dashboard below gives a Company an indication of whether it is performing or otherwise.

http://key marketing Metrics to Facilitate Marketing Strategy.docx

The dashboard gives that a Company’s sales, market share are good. Profit margins is at a 50/50 position, not good nor bad, whilst Employee Satisfaction and Customer Satisfaction are in a very bad position for the Company. Moreover, the dashboard measures gives that the particular brand operates in a Monopoly like conditions, Sales and shares are very strong as the Customers does not have many alternatives, this however creates employee and customer in satisfaction. The Company’s low profit margins indicates that the Company is not managing its cost very efficiently. (Iacobucci et al)

Ambler (2008) discusses what marketing metrics can do for any organization:

  • Brands’ activities in the market; for example, new product launches, price increases, changes in pack size, and so on
    • How the market is reacting to these changes; for example, how buyers are buying, at what prices, and so on
    • How brands’ market-based assets are holding up

Marketing metrics gives a baseline, which checks and balances and that Marketing performance, should be assessed using a combination of short-term cash flow, or profit, compared with a valid benchmark, e.g., a plan, and a proxy for the change in future cash expectations due to the marketing activities for a given period.

The Financial Measurement of Marketing Performance

Managers would like a single number, representing profit in some way, for each alternative ways of meeting customer needs. The plan selected would be the one with the highest number would be selected. They would like to assess performance by comparing the actual resulting number with the one predicted in the plan.  We call this single number a “silver metric”, and it is the common goal of a number of methodologies such as ROI or DCF.

ROI

Return on investment (ROI) is used to compare capital projects where investments are made once and the returns flow during the following years. ROI is the net return divided by the investment or, more correctly, the incremental profit as a ratio of the incremental expenditure.

  • ROI has become a fashionable term for marketing productivity and used to describe any type of profit arising from marketing activities.
  • ROI gives Incremental sales revenue
  • Ratio of cost to revenue
  • Cost per sale generated Changes of financial value of sales generated
  • Cost of new customer (sic)
  • Cost of old customer retention

DCF

Discounted Cash Flow is the basic methodology for a number of apparently different techniques: net present value (NPV), brand valuation (Perrier 1997 cited in Amber 2002), customer lifetime value (CLV, Venkatesan and Kumar 2004; Gupta and Lehmann 2005), customer equity (Rust, Lemon, and Zeithaml 2004) and, usually, brand valuation (Ambler et al.2002).

This techniques can be used to compare alternative investments and also for regulating utility prices. There are few issues with the  usage of DCF techniques for performance evaluation due to time, planning and comparison of alternative future scenarios; however, whatever the tools deployed, the performance of any organisation depends largely on its intended usage and positive outcome received.

Baker, (2016) in AdNews states that, Facebook admits to over – inflating key video view metrics. There was an error being reported in the video view metrics where it concluded that the average time watching video has been inflated by 80%. The Wall Street Journal has pointed out that publishers are impacted by this error as they were given incorrect information on how much time users are spending with their video content. Facebook confirmed that they had discovered an error on how they calculate their video metrics.

There may be flaws in measuring Metrics for any Businesses, hence this is something businesses must carefully and thoroughly conduct so that customers are not affected. Mintz (2013) finally states for managers to employ both marketing and financial metrics to assess the performance of the marketing mix activity. There may be financial uncertainty encountered, however it is expected that the greater the number of marketing versus metrics employed, better decisions are perceived for better performances.

By Jacinta Tupuola-Maua

212369336

Reference List:

Ambler, T, Roberts, JH (2008). Assessing marketing performance: Don’t settle for a silver metric

Griniute, Ilona, (2012) Measurement of Marketing Communications Performance:

Iacobucci, D. (2013) Marketing Management, MM4, Student Edition.

Mintz, O, Currim, IS (2013). What drives managerial use of marketing and financial metrics and does metric use affect performance of marketing mix activities?

Measurement%20of%20Marketing%20Communications%20Performance.docx#ROI

A system of marketing metrics

http://www.adnews.com.au/news/facebook-admits-to-over-inflating

The Need for a Media Reform

I have always thought that Television is educational and informative with so many channels and cable that the world has discovered. In my small world with just a dot on the global map, Television has simply brought the world to our homes updating us with all events globally. But little did I know, that there have been regulations and protectionist laws limiting broadcasting now faced with the neighbouring countries.

The Australian Subscription Television and Radio Association (ASTRA) has publicly showed the world some of the fascinating issues tarnishing the benefits of the whole IMC philosophy with the challenges of protectionist laws that has had a significant impact on Australian Television companies.

Hickman (2016) confirms that the Australian government is now undergoing a reformation package to abolish the audience reach rule and cross media ownership restrictions  so that free subscriptions in the Television industry are realised.

There is however a holistic media reform package that the Australian government has placed on the Australian free-to-air and subscription Television companies. The package includes the excessive licence fees, the anti-siphoning list and other compliance costs.

Hickman et al, further confirms with the ASTRA Chief Executive Officer, that this package reform initiated by government, will revoke media ownership and control rules that unfairly restrict Australian broadcast and publishing companies from building the scale and cross media capabilities needed to take on global digital media rivals. There is also protectionist policies such as the anti-siphoning laws that was supposedly to regulate media companies having access to significant sports that has recently prevented Foxtel from bidding on some of the certain sports when in fact it was seen as a blunt instrument to cut back one competitor. Then there’s governments excessive broadcasting licence fee which has been recorded more than 15 times the rate that is used in the United Kingdom. This tax however is only applicable to Television and radio services that use radiofrequency spectrum, this has significantly eroded funding in areas of local content productions.

The rise of the Subscription Video on Demand (SVOD) has also been confirmed having a somewhat lesser impact on the pay Television Industry with a recorded amount of 50% of households now having to pay some television content, which is now recorded as the highest in Australia.  These hurdles has placed local content procedures at a huge disadvantage making Google, Facebook and Netflix which are free from all these regulations are in the go to lure advertisement dollars from the traditional channels and making way into the digital world (Hickman, 2016)

With such, a call for deregulation urgently needed confirms Hickman et al. There is a dire need to create a level playing field so that local companies can focus on producing Australian content so that they are able to compete with much of the endless production line of the highly blockbusters from the United States and from other countries.

The free-to-air and subscription Television sectors have been aligned in this deregulation reform called the “unity ticket” and it has placed great emphasis on the local content with less content requirements for TV networks and placing ideas on investing in locally produced drama and also on children’s programs.

Hickman et al confirms that ASTRA will adopt a similar robust position and will include competition barriers that are unique to ASTRA members. This includes the anti-siphoning list that prevents Foxtel from bidding for live sports that are known to be of national interest. More significantly, ASTRA believes that free-to-air networks are softening their position on anti-siphoning list as they have commercially more important strategies and marketing activities to focus on. The government will proceed with such reforms to deregulate and getting rid of some of protectionist laws that have accumulated over the last 20 years for free-to-air television.

ASTRA is now heading towards a change period and the increasing challenges presented by digital world and the sector expanding that greatly needs Integrated Marketing Communications so that ASTRA can further make informed choices and to select the most appropriate media outlets.

Iacobucci (2013 p.162) states that marketers and businesses can capture a variety of audiences or target group  across the varied media that engage them, marketing experts have encouraged the strategy of IMC. The marketing manager needs to know the strengths of the various individual media available. It is significantly important that the marketing messages are seamlessly integrated across the   media selections. Companies and Marketers nowadays needs to keep in mind the company’s overarching strategies and ensure that all of the marketing activities send a consistent message such as its communication, the significant things like consumer and trade advertising and promotions, product placement, personal selling, direct and database marketing. Also including other marketing mix elements such as the product design and packaging, pricing and channel availability.

To ensure that such strategy is effective , all IMC messages across all media should be the same. Although, marketers have realised that while some elements should be consistent (brand names, logo, general flavour and positioning) the varied media have varied strengths and therefore the messages should also play to the mediums strengths for instance, a TV ad is vivid and dramatic, however, the message needs to be kept simple, whereas complicated products can be explained better in print such as in magazines, online, direct marketing). the overall goal here may be consistent in terms of its positioning, but the different media offers supplemental information.

Iacobucci et al p. 163 further gives media comparisons with today’s TV channel fragmentation, this medium still yields the largest reach numbers. While reach is strong, frequency can be very challenging to achieve given the expenses. Traditional TV, is considered a mass medium, but special TV and cable channels serve more focused audiences.

Kuang-Jung, Mei-Lian, Chu-Mei and Chien-Jung (2015) gives a model that builds on relationships among integrated marketing communications, collaborative marketing and global brand building and it has given that IMC has significantly impacted and has had positive effects on the global brand building. Further this approach also elaborates on collaborative marketing which has reached a closer integration and better management of business relationships among parties, business partners and customers which although adopted in Taiwan, it may be an applicable approach for all business marketers.

by Jacinta Tupuola

ID 212369336

 imagesREFERENCE LIST

Iacobucci, D. (2013) Marketing Management, MM4, Student Edition.

http://www.adnews.com.au/news/page/5

Kuang-Jung, C, Mei-Ling, C, Chu-Mei, L and Chien-Jung, H (2015) . Integrated Marketing Communication, Collaborative Marketing and Global Brand Building in Taiwan.The International Journal of Organizational Innovation Vol.7 Num4. April 2015

 

 

 

 

MCN ramps up ad targeting, focuses on mobile

The Multi Channel Networks or MCNs is well known as the third party service providers that affiliate with so many other channels so that it may offer speedy and first class services that includes audience development, content programming, creating collaborators, digital rights management, monetization and making large sales.

According to AdNews, MCN has partnered with location data specialist Near to launch a new offering allowing advertisers to create and target mobile audiences based on location. This  platform, which is known as the MCN Location, uses Near’s location technology, overlaid with third party data sources such as Roy Morgan Helix Personas and behavioural data sets, to provide brands with bespoke audience segments.

 

Pokemon-Go

 

Source: MNC Mobile 1.0.4 APK

SEGMENTATION

If consumers have unique needs and desires the market will demonstrate heterogeneity. This means that marketers will have to offer different products, and more broadly marketing mixes, in order to satisfy the different needs in the market (Module Four: Segmentation, Targeting and Positioning).  Iacobucci, D (2013) states that in Marketing, we deal with all customer differences through segmentation, with the hope that world will buy their market offerings.

However, instead of trying to appeal to the whole market place, the smart company  and smart marketer has to discover and find out what different kinds of customers might like, and decide which groups they can best serve.(Iacobucci et al)

According to AdNews, MCN has partnered with location data specialist Near to launch a new offering allowing advertisers to create and target mobile audiences based on location.
Cardwell of MCN says MCN will integrate this location data across its digital network, and is looking to integrate the technology into the apps of existing partners to target against location on specific properties.

It has also started working on putting its out of home (OOH) screens onto the Near platform. Cardwell says the company is looking to see if innovations such as synchronized messaging – paring mobile advertising with the OOH screen . With this idea it may just be possible using mobile devices and up to date technologies.

 

 

Reliance-Jio-4G-launch-ready

OOH screen.


TARGETING

Now which one of the segments do we want to target is the big question when it comes to Marketing as this is based on the idea of selection. MCN  analyses the marketplace, competitors, and internal strengths, and find that their value aligns better with some segments than others, and targets those segments accordingly.

Cardwell of MCN says the offering will benefit advertisers, this has given MCN great access to “highly targeted” mobile advertising based on location and context.

Near has mapped more than one million points of interest including stadiums, shopping centers and retail outlets and also has the ability to add advertiser’s own locations for data sets. Furthermore, It uses proprietary technology that uses Wi-Fi networks, 3G and 4G tower reception and GP location data. “This gives us a hugely scaled mobile offering in market,” Cardwell says. “The fact we have exclusive representation of this location base technology gives us a real market advantage that we can offer to our advertisers.”

POSITIONING

Positioning has many physical elements in Marketing, this talks about the Company’s identity. Positioning also consists much of the marketers responsibilities such as designing a product with positive benefits that the target segments will greatly value.

Positioning also looks at pricing so that it is affordable, at the same time building distributor relationships so that such market offering is available and lastly, the ability to communicate all the brands and products to the target or customers by using arrays of promotional activities or simply the marketing mix variables. (Iacobucci et al)

Positioning is about  how MNC creates its identity in the eyes of its customers and competitors and most significantly what its position is in the market place.

As part of the launch of MCN Location the company has hired Rob Marshall as its first dedicated mobile sale representative for MCN Melbourne. Marshall has more than six years experience in the media industry with three in mobile and is tasked with spearheading the MCN and Near partnership in Melbourne.
MCN digital partnerships and product development director Suzie Cardwell tells AdNews that the partnership put it in good stead to overlay TV data with its location data.

Cardwell further adds in the AdNews that MCN is  looking at over the next 6-12 months on how we can take Near’s location data into the MultiView datasets to make that an even richer data set,” MCN is also looking at how that would work across the TV assets and with the digital assets we have in our partnership.

by: Jacinta Tupuola . ID: 212369336

REFERENCE LIST

Iacobucci, D. (2013) Marketing Management, MM4, Student Edition.

Read more at http://www.adnews.com.au/news/mcn-ramps-up-ad-targeting-focuses-on-mobile#lthXKsUvsrmDOyRY.99

http://www.adnews.com.au/news/mcn-ramps-up-ad-targeting-focuses-on-mobile

https://support.google.com/youtube/answer/2737059?hl=en