Marketing Metrics, A must add-ins in the future of the marketing activities.

With the introduction of the term metric, and with the technological development in the measuring system, companies are using various tools to evaluate their performance. Evaluating is a key to figure out what needs to be improved, and to stay on the same ground to that of the performance of the company. Marketers are using various metric tools not just to demonstrate its accountability but also to improve and enhance the intangible benefits, they provide to the companies and ensures they meet their performance goals. During economic downturns, the companies are prone to reduce the marketing budgets, the performance indicator tools helps to measure the degree to which the marketing spending contributes to the bottom line and its contribution to the other areas of the organization, sales and customer service for example.

F1.large.jpgKotler (2003) listed four types of marketing control, which states whether the company is effective in achieving the selected goals, making or losing money, and efficiently generating returns from the marketing expenditure, thus summarizing the four types under the head: annual-plan, profitability, efficiency and strategy and having done that, it is important to compare the four types individually and in a group using the marketing metrics. As per Clark, Abela, & Ambler, 2005, marketing functions may address a threat to its future, and during the time of economic uncertainty if the demand for the accountability and measurement is not addressed.

Marketing functions and activities can have a longer effect on the performance of the company and may not be recorded in the single financial year report. Hence the measure for marketing performance splits between, financial measures and those who incorporates non-financial measures. Discussion by Clark (2001) and Ambler (2003), suggested that marketing is not short of metrics and evaluation processes; Farris, Bendle, Pfeifier, and Reibstein (2004) identified 114 metrics that covers both financial and non-financial metrics, but lacks structural usage of the available matrices. Summarizing the huge list of metrics, Ambler, Kokkinaki and Puntoni (2004) categorized the marketing metrics, covering their top 15 metrics under (a) consumer attitudes, (b) consumer behavior, (c) trade customers (d) relative to competitors (e) innovation, and (f) accounting.

Financial Metrics can be used to measure the performance of the organization’s outcomes and identified as (a) return on investment (ROI), (b) revenue per customer, (c) marketing expenditure vs budget, and (d) marketing expenditure as a percentage of revenue. The main focus of these metrics is to provide a quantitative measure, and link the marketing activities to the company’s finances.

Marketing functions addresses directly or indirectly to the wide range of other organizational functions and needs to be evaluated regularly, and needs to be linked closely to the non-financial marketing evaluation metrics. This qualitative measurement of the market functions are the indicators of the future performance of the organization. It is accountable under four measures namely (a) brand awareness, (b) market share (volume and value), (c) website traffic (number of unique visitors) and (d) the number of new customers.

These two variables and sub-variables can be collected together in the form of the charts, data and templates to suit the requirement of the organization for further analysis of the growth and measure, defined by the marketing dashboard, which keeps the track of all measurable aspects of the organization. Typically, it categorizes the metrics results under the following categories: (a) customers, (b) product, (c) brand, (d) channels, (e) efficiency, (f) organizational development; and environment (micro-environment), helping the organization to allocate the resources in a better way and enhance the performance. With the development of the marketing accountability and creation of dashboard, business analyst can make a fact based decisions, developing a competitive advantage. Businesses are embracing performance management as a vital role in estimating organization’s bottom line, with marketing being one of the final frontiers for the business’s performance as it’s a key to any of the company ‘survival.

cloudbridge marketing dashboard marketing performance.jpg

In future, if we expect marketing activities to survive the economic downturn, we need to arm the marketing mix with the marketing performance tools, or KPI (key performance indicator) and link qualitative and quantitative data to out space the growing competition in the market.

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Apple: Following the theory to the perfection.

Unknown

When we talk about branding, new product development and marketing, the first company striking my mind is “Apple Inc.”. Known for its innovation, design brand and more importantly its unique marketing strategy, creating a strong customer base ever since the launch of its Apple II, generating $79m in sales in 1979 providing customers across the world both tangible and intangible benefits.

Apple offers premium products at premium price, and continue to create groundbreaking products in the variable market of technology, with the help of its R&D department and understanding consumer’s demand and their need to keep themselves updated with the movement of the technology and innovation. And with the core offering off it’s exceptionally well deigned and innovative product, Apple Inc. has successfully offered its global customers with high quality customer service, creating a friendly culture within its retail chain outlet, guiding and helping in product related queries/repairs providing high quality credence and have successfully collaborated it with high in experience qualities towards their customers with the launch of apple store and itunes in 2001, providing perishable (services which are produced and consumed simultaneously) intangible services adding value to its product, enhancing the credibility of its products and customer benefits. Apple has successfully been able to differentiate between its core product and its value added products, providing niche services through its various range of products (itunes and app store in particular), taking service variability across countries and the consumer requirement, for example, app stores have various applications in different region thus improving and innovating on variability. Expanding itself into the marketing mix, the company has successfully established call centers across their operating customers and retail outlets providing direct and personal interaction with the customers in a friendly tech-cultural environment, providing services and taking feedback. This shows how the company have successfully been able to differentiate between its goods and services, differentiating its product and value added products and mixing it with the marketing theories and mix. The company has created an image of innovation and design, satisfying customers and able to attract its customers. Further the industry’s macro environment changes such as innovation and costumer’s change in demands has worked in the favor of the commercialization of their brand image, expertized in the fields of marketing theories and design, providing end to end business.

Marking methodology and branding strategy of Apple centers on their items as well as the need of each individual. The organization brand identity is about effortlessness and disposing of confusions from the lives of each person, individuals driven Apple item plan, and on the subject of being an unquestionably humanistic business with a true and bona fide association with its customers everywhere throughout the world. The Apple Company Brand Personality

Marking procedure of Apple spotlights on client’s feelings. The organization brand identity is about:

  • way of life
  • freedom recovered
  • creative energy
  • trusts
  • dreams
  • development
  • desires
  • energy to the general population by method for innovation.

Apple Inc., has built a strong subsequent product, using the same platform for the same product, making it easier for the customers to understand the subsequent product building high awareness of the high ease quality service among the customers which has worked as an Umbrella effects, working in managing the brand name for the company.

history_of_apple_logo.gifThe changes in the logo speaks a lot about the apple evolution taking care of the market change and the product life cycle. The company first launched its product in 1979 and evolved itself into the diverse field of technology involving its business in iPod, iPad, iMac, MacBook and now has recently launched its product in watch and TV. Further improving on its branding, in every product, and involving into the market, the company has successfully managed to rotate its each product with the launch of its new product, anticipating the change and pre designed market strategy involved through marketing mix and branding management, launching its product through launching event, and beforehand only providing the teaser of the new launch to the market, which keeps their customer more curious for their new launch, each year.

Armani shows the depth of the strategy !!

Udit Sharma
MBA(I), Username: usharm

Trying to understand the concept “of what does company do to attract customers and maintain a stable relationship with them”, and moving into the depth of the subject I come across another concept within the concept of marketing.

As I moved along, taking instance of a freelance designer to a brand competing against the luxurious brand such as Dolce & Gabbana, and his marketing strategy to survive the completion.

Georgio Armani was successful enough to understand the demand for the lifestyle and attitude of the people’s demand towards such product, segmented his customers for his product spreading awareness, and involving the expertise and luxury brand attributed people within the segment. Segmenting the customers on basis of psychology, the company capitalized over his relationship with the media stars and Hollywood over the years, starting back in 1980 film American Gigolo. Targeting high-class customers, providing luxurious-high quality goods and exclusive design and style, the company further expanded its product lines including fashion accessories, swimwear, cosmetics, fragrances, jewelry, eyewear, and even mobiles understanding the behavior of the users towards luxurious lifestyle further segmenting his product on basis of the behavioral changes of the customer and evolving his design to meet the demand. Armani’s management, played an important role understanding the expansion of it’s market among the international market, and segmented its customers on basis of the variance of lifestyle on basis of different geographical living standards of the high-end customers, giving them a vison of expanding other new lines and their brand of jeans under the brand name “Emporio Armani” under several new enterprises beyond jeans and boutique dresses.

Subcategorizing the new line of product as per the various new enterprises, which includes Junior Armani, Armani Jeans, Armani/Prive, and many more, the company positioned its product as per the demand of his segments within the segmented customers across the globe. The company positioned its segmented product for the segmented customers as per the perception of the quality desired and priced the product accordingly. The company was just right enough to segment its product using one to one marketing marketing strategies to different segment of customers, keeping in mind, the reflection of the company’s image i.e. symbol of luxury and VIP lifestyle”. The company not only segmented his market ranging from boutique shop design to home interiors, and positioned his range of products, the company was successful enough to dig through and place its product under the 4 p’s of the marketing tool, i.e. price, place, product and promotion competing against brands like Gucci, Paul Smith, Guess, Channel, Prada, etc. The company expanded its target market, i.e; high-end customers which includes Hollywood stars to high income business man, with its USP of high-quality exclusive designed and styled products reflecting luxury by segmenting its different line of products under various enterprises.

 

Thus, providing a deep down knowledge of the basic yet unique concept of market segment where customers who have similar likes and characteristics are grouped together, on basis of their needs, lifestyles, demographics helps to decide the target market, and further helps sub-categorize the target market to attain more customers of within the targeted market.

 

The company’s strategist used the depth strategy of segmentation, i.e., served one segment, to its maximum which not only helped them grow its chain across the globe but also helped the company position its range of products within themselves and among the other luxurious brands.

Thus to understand the marketing concept, understanding the marketing segmentation, i.e categorizing its customers, also your target market, on basis of your products positioning among its customers, to its depth plays an important role and the company like Armani exploited the strategy to its optimum and maintained its head in a market which changes everyday capitalizing over niche market accounting to 2.4$ billions.

 

 

Reference

 

 

Slideshare.net. (2016). Giorgio Armani. [online] Available at: http://www.slideshare.net/raj_qn3/giorgio-armani-11353493 [Accessed 8 Aug. 2016].

 

Referenceforbusiness.com. (2016). Giorgio Armani S.p.A. – Company Profile, Information, Business Description, History, Background Information on Giorgio Armani S.p.A.. [online] Available at: http://www.referenceforbusiness.com/history2/36/Giorgio-Armani-S-p-A.html [Accessed 8 Aug. 2016].

 

Investopedia. (2005). Marketing Definition | Investopedia. [online] Available at: http://www.investopedia.com/terms/m/marketing.asp [Accessed 8 Aug. 2016].

 

Consumerpsychologist.com. (2016). Segmentation, Targeting, and Positioning–Consumer Behavior. [online] Available at: http://www.consumerpsychologist.com/cb_Segmentation.html [Accessed 8 Aug. 2016].

 

Slideshare.net. (2016). A R Meps E 2010. [online] Available at: http://www.slideshare.net/Safilolatinamerica/a-r-meps-e-2010 [Accessed 8 Aug. 2016].

 

Pinterest. (2016). Database Error. [online] Available at: https://au.pinterest.com/pin/95771929549810282/ [Accessed 8 Aug. 2016].

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