Lecture Marketing metrics: Chapter 1+2 - Trần Nhật Minh

9/18/2015

• “If you can’t measure it, you can’t manage it”
(Kaplan, Robert & David P. Norton, 1996)

Objectives
• Marketing: Art vs. science
• Setting feasible marketing target
• Quantify marketing performance
• Evaluating marketing accomplishment
• Comparing marketing effectiveness among
competitors in the market.

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Materials

Contents
• Chapter 1: Overview of marketing metrics
• Chapter 2: Developing marketing metrics system
• Chapter 3: Market & Sales forecast

• Chapter 4: Non-financial metrics
• Chapter 5: Financial metrics

Overview of
marketing metrics

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Contents
• What’s a metric.
• The need of measuring marketing performance

Marketer’s challenges
• Empowered customers
• Fractured media
• Continuing growth

• Extensive competition
• Demand for effectiveness and accountability

Metrics
• A measure system that quantifies a trend, dynamic
or characteristic.

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Roles & functions
• To assess past situations:
◦ Explain phenomena
◦ Diagnose causes

◦ Share findings

• To forecast the future
◦ To project results of future events

Benefits
• Focus on the key performance criteria.
• Better vision.
• Better decisions.

• Raising marketing’s role, influence and stature in
the company.
• Better buy in and support from other
departments.
• Better performance

Limitation and difficulty
• Availability of data
◦ Permission, privacy
◦ Ability to access

• Sources of data
◦ Bias

• Accuracy
◦ Methodology to collect data

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Developing a marketing
metrics system

Contents
• Data needed for developing marketing metrics
system
• Building process for measuring marketing activities

Type of metrics
• Activity-based metrics: track and assess marketing
activities
• Operations performance metrics: evaluate
performance of marketing department
• Outcome-based metrics: measure marketing
efforts to defined objectives

• Leading-indicator metrics: help company in
making strategic decisions.

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Needed data
• Consumers
◦ Profile
◦ Behaviors

• Internal & Competitors
◦ Marketing activities and performances

• Environment
◦ Macro and micro environment

Data sources
• Channel partner data sharing
• Marketing programs
• Surveys

• Internal data from different departments

Ethical & legal issue in
collecting data
• Keep highest ethical and professional standards.
• Have privacy policy in collecting and using
customer data

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System of metrics development
• What to measure?
• Where to measure?
• When to measure?
• How to measure?

System of metrics development
Leadingindicator
metrics
Business Objectives

X

Marketing Objectives

X

Operation
performance
metrics

Outcomebased
metrics

Activitybased
metrics

X

STP

X

Marketing Mix

X

X

X

Implementation

X

X

X

System of metrics development
• Customers: acquisition, retention, value
• Product: adoption, innovation, price and/or
margin
• Competitive positioning: market share, brand
preference
• Financial: budget, payback/ROI, customer equity

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Steps to develop relevant metrics
1. Establish brand goals
2. Establish campaign goals

3. Determine KPIs (Key Performance Indicators)

4. Determine supplementary metrics

Metrics Dashboard

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