Indicators of the Effectiveness of Marketing

Topics: Marketing, Quantitative research, Sociology Pages: 7 (2050 words) Published: April 21, 2013
An important task of marketing research is the evaluation of the effectiveness and efficiency of marketing activities. Management companies require marketers increasingly rigorous reporting and substantiation of expenses. Tired of the high and steadily increasing marketing costs, executives are naming the following as marketing : failed new products and failed advertising campaigns, too many phone calls and expensive campaign that are created to stimulate sales but fail to do so. Marketing research is partly able to solve the problem of accountability of marketing. Consider the basic approach to evaluating the effectiveness of marketing activities - a system of performance marketing. Performance indicators of marketing - the criteria by which companies quantify, compare, and interpret the results of its marketing activities. Brand managers are using these indicators, or metrics, program design, and top managers - in the allocation of financial resources. If the marketer can show how the money will give the effect of his proposed measures, which means he can no longer justify the allocation of appropriate resources to senior management. Performance indicators can be internal marketing, i.e., refer to the company's internal environment and external, that is, relate to the external environment of the company. In turn, internal and external indicators are divided into:

Current - continuously varying parameters, which require continuous monitoring, and are often carried out with the help of a marketing information system.

Final - indicators that are used as marketing the company's goals and evaluated, as a rule, for the quarter, half, or year. Let’s consider the most popular domestic rates.

Current domestic rates:
defect rate of products
degree of knowledge of the company's goals of personnel
timeliness of delivery
errors in billing
inventory turnover
It is advisable to keep in mind key indicators that are not directly related to marketing activities. For example, estimating the percentage of defective products and participating in the task to reduce the reject rate, the marketer, thus reducing production costs, which in turn can reduce the price of the product. A price control is one of the essential tasks of the marketer. Timeliness of delivery can improve customer loyalty and forms in their eyes the image of a reliable and punctual company. The degree of knowledge of the objectives of the company allows staff to make the right decisions in complex ambiguous situations. And, most often benefit from such solutions is primarily a consumer. The final internal indices:

net profit (income)
return on sales
margin per unit of output
return on assets

These figures can be attributed to the financial. The marketer should be aware of the dynamics of their growth or decline. Financial performance could not be more eloquently and accurately described as the company's activities in general and the marketing department. Of course, to a direct relationship between the magnitude of these parameters and the degree of effectiveness of the marketing department can not, however, the negative trend indicators will clearly indicate the true chosen strategy of the company and, accordingly, a lack of effectiveness of the marketing department.

The most popular external indicators include the following.

1.Current external indicators:
degree of customer satisfaction
the number of complaints
the total number of customers
loyalty, retention rates
intention to buy
awareness of the product
The presented figures are difficult to translate into a financial equivalent. How, for example, brings the company's customer loyalty? Therefore, these parameters are estimated separately, according to a specific, produced for a specific company, the system scales. Also, the absolute values are used, for example, to measure the number of complaints or the total number of customers, and the relative...
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