Posted April 6, 2012 by Team AnalyticpediA in Analytics

Performance Measures in Marketing

Marketing Performance Measures
Marketing Performance Measures


Marketing performance measurement is used to describe the analysis and improvement of the efficiency and effectiveness of marketing. Marketers are trying hard to measure marketing performance in the various endeavors of marketing activities. Marketing executives are focusing on measuring, managing, and analyzing marketing performance to maximize effectiveness and optimize the return of investment of marketing. If the marketing function focuses on performance measurement and financial accountability, a better understanding of the role of marketing and its contribution to the performance of the company can be achieved, resulting in increased credibility of the marketing function in the eyes of both the CEO and CFO. In a research study done in US it has been found that those companies with a formal, comprehensive marketing performance measurement system in place outperform their peers on important financial measures and enjoy higher CEO satisfaction with the marketing function. Apart from that the companies, the market conditions and environments change constantly, and in light of such changes and trends the need for revised and new performance measures arises. So there is a need to focus on the different marketing performances indicators or measures.

Many marketing performance measures exist today here we have listed some of the key performances measure which could be helpful for the CEO and CFO to gauge the effectiveness of their marketing efforts and overall organizational performance.

Mental consumer results

Brand awareness, Relevance to consumer, Perceived differentiation, Perceived quality/Image/reputation, Perceived value, Customer Preference, Customer satisfaction, Customer loyalty/retention, Likelihood to recommend

Market results

Sales (volume and value), Sales to new customers, Sales trends, Market share (volume and value), Market trend, Number of customers, Number of new customers, Number of new prospects (leads generated/inquiries), Conversion (leads to sales), Penetration Distribution/availability, Price Relative price (SOM value/volume),Price premium, Price elasticity

Behavioral customer results

Customer loyalty/retention, Churn rate, Number of customer complaints, Number of transactions per customer, Share of wallet

Financial results

Profit/profitability, Gross margin, Customer profitability, Customer gross margin, Cash flow Shareholder value/EVA/ROI, Customer lifetime value

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