Measuring Marketing : 110+ Key Metrics Every Marketer Needs

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  • Edition: 2nd
  • Format: Paperback
  • Copyright: 2013-02-11
  • Publisher: Wiley
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Evaluating marketing performance and decision making more fairly Marketing has long been considered an art and not a science, but that perception is beginning to change as increasingly sophisticated methods of quantifying marketing success are developed. In Measuring Marketing: 103 Key Metrics Every Marketer Needs, Second Edition, one of the worlds leading experts in the field presents the key marketing ratios and metrics. Applying these metrics will enable marketers to make better decisions and increase their accountability for their strategies and activities. This fully revised and updated new edition discusses the key marketing metrics needed for successfully measuring the performance of an organizations marketing investments. CEOs and CFOs regularly ask for one simple way to assess the efficacy of marketing campaigns, but the fact is that there isnt one single measure of performance. Measuring Marketing helps marketers figure out what they can and should be measuring and when. Marketers are increasingly being held accountable for the corporate bottom line, and this book helps both marketers, as well as the business leaders who employ them, to measure performance fairly and accurately Measuring marketing success is difficult, but this book shows what and when to assess Designed to increase accountability and improve everyday decisions, the book includes ratios illustrated with actual marketing cases from leading companies The first book to address growing demands that marketers be accountable for their strategies and decisions, Measuring Marketing explains how to assess marketing success in more meaningful ways.

Author Biography

John A. Davis is the author of several acclaimed marketing books: the first edition of this book; the first and second editions of The Olympic Games Effect; Competitive Success; Magic Numbers for Sales Management; and Magic Numbers for Consumer Marketing. He is a member of the marketing faculty at the Lundquist College of Business, University of Oregon, and Chairman of Brand New View, an executive education and professional services firm. Previously, he was Dean of the Global MBA Program and Professor of Marketing at SP Jain, with campuses in Singapore, Dubai, and Sydney. In 2010, he was the recipient of the "Best Professor in Marketing" honor, awarded by CMO Asia and Asia's Best Business School Awards. Before SP Jain, he was department chair and professor of marketing at Emerson College, and professor of marketing practice at Singapore Management University, where he received the "Most Inspiring Teacher" award and Dean's Teaching Honors. John regularly consults with leading global companies and is a sought-after conference speaker. He has also founded two award-winning companies and has led marketing teams at Nike, Informix, and Transamerica. He received his MBA from Columbia University and his BA from Stanford University. He is a member of the marketing faculty at the Lundquist College of Business, University of Oregon, where he received the BAC Outstanding Teaching Award in 2012, and Chairman of Brand New View, an executive education and professional services firm.

Table of Contents


Section I: Corporate Financial Metrics

1. Revenue
2. Gross Profit
3. Value to Volume Ratio
4. Net Profit
5. Earnings-Based Value
6. Return on Sales
7. Return on Assets
8. Return on Equity

Section II: Marketing Planning Metrics

9. Market Share
10. Relative Market Share
11. Market Growth
12. Market Demand
13. Market Penetration
14. Program/Non-Program Ratio
15. Program/Payroll Ratio
16. Causal Forecast
17. Time Series Analysis

Section III: Brand Metrics

18. Brand Equity
19. Brand Scorecards
20. Brand Premium
21. Brand Contribution and Review Analysis

Section IV: Customers Metrics

22. Net Sales Contribution
23. Time-Driven Activity-Based Costing
24. Segment Profitability
25. Customer Profitability
26. Share of Customer
27. Return on CustomerSM
28. New Customer Gains
29. Customer Acquisition Costs
30. Cost Per Lead
31. Retention Rate
32. Churn Rate
33. Customer Losses
34. Consumer Franchise
35. Customer Equity and Customer Lifetime Value (CLTV)
36. Customer Brand Value

Section V: Product/Offering Metrics

37. Usage
38. New Product Purchase Rate
39. Marketing Cost Per Unit

Section VI: Price Metrics

40. Price
41. Mark-Up Price
42. Target Return Price
43. Sales Price Variance
44. Markdown Goods Percentage
45. Profit Impact

Section VII: Advertising/Promotion Metrics

46. Share of Voice
47. Recall
48. Recognition
49. Reach
50. Frequency
51. Gross Rating Points (GRP)
52. Cost Per Gross Rating Point (CPP)
53. Response Rate
54. Conversion Rate
55. Advertising to Sales Ratio
56. Promotion Profit

Section VIII: Direct Marketing Metrics

57. Direct Marketing Revenue Goals
58. Direct Marketing Profit Goals
59. Direct Marketing Gross Profit
60. Direct Marketing Net Profit
61. Direct Marketing ROI1

Section IX: Online/Digital/Social Metrics

62. Gross Page Impressions (or Gross Page Requests)
63. Word of Mouth (WOM)
64. Total Clicks
65. Click Through Rate (CTR)
66. Cost Per Click
67. Cost Per Action
68. Pay Per Lead
69. Activity Ratio for Social Media
70. Deductive Social Media ROI
71. Resolution  Time
72. Social Media Profitability

Section X: Place/Distribution Metrics

73. Cost Per Sales Dollar
74. Transactions Per Customer
75. Transactions Per Hour
76. Average Transaction Size
77. Average Items Per Transaction
78. Hourly Customer Traffic
79. Returns to Net Sales
80. Inventory Turnover
81. Percent Inventory Carrying Costs
82. Gross Margin Return on Inventory Investment
83. Sales Per Square Foot
84. Sales/Profits Per Employee
85. Retail Close Ratio
86. Retailer’s Margin Percentage
87. Percent Utilization of Discounts
88. Shrinkage to Net Sales

Section XI: Sales Metrics

89. Net Sales Contribution
90. Absolute Index (AI)
91. Relative Index
92. Percent of Sales
93. Independent Sales Representative Analysis
94. Turnover Rate
95. Recruiting
96. Breakdown Approach
97. Workload Approach
98. Sales Performance Quotas
99. Average Sales Per Call
100. Close Process and Close Ratio
101. Cost Per Call
102. Break-Even Sales Volume
103. Sales Productivity
104. Four Factor Model
105. Sales Variance Analysis
106. Sales Volume Variance
107. Straight Salary
108. Straight Commission Plans
109. Profit-Based Commission
110. Salary Plus Commission or Bonus
111. Salary Plus Commission and Bonus
112. Commission Plus Bonus
113. Team Selling Compensation

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