Toolkit for measuring marketing performance

There are many definitions of marketing, actually too many. Along with the advancement of the Internet and consequently the development of new marketing techniques, technologies and strategies, new definitions of marketing are emerging in large numbers. As varied and varied as the definitions of marketing may be, the essence of what is said remains. Marketing is undoubtedly still the unique function of business enterprise, and without effective marketing, no successful business is possible nowadays.

Most companies believe that marketing effectiveness is measured solely in numbers. Obviously, there are aspects (metrics) of marketing effectiveness that can be quantified and measured. The first and most important goal of marketing is to get customers. Consequently, the effectiveness of this aspect of marketing can be evaluated by the number of new customers, new leads a company receives, or in the case of telemarketing, by the number of calls completed. Another important measure of effectiveness is the number of new products purchased by existing customers, since the goal of any business that wants to remain competitive in the market is not only to acquire new customers, but also the existing ones to appreciate and keep.

Measuring response is another simple and powerful way to evaluate marketing activity. By dividing the total cost of a marketing activity (such as an ad) by the total number of responses, you determine the cost-per-response ratio. This cost per response ratio can help you decide if this activity was a success by comparing it to other alternative marketing activities. A standard measure of the effectiveness of various marketing activities is the marketing ROI (return on investment).

That being said, there are aspects of marketing effectiveness that cannot be quantified. Many marketing analysts explain that the job of marketing is to create an environment where the customer will appreciate the benefits of doing business with your company, create the conditions for the sale, and create the circumstances that lead the sale to the next logical and reasonable make step. The uniqueness of a company that sets it apart from the competition, its strong position in the market, that is, the status of a company as a recognized leader in this field, the ability to remain at the forefront in the minds of customers, can be considered the benchmarks for Review of a company’s marketing success.

Marketing effectiveness, which results in companies meeting their sales goals, increased profits and increased bottom line performance, is determined by both quantified and unquantified metrics. The concept of highlighting specific metrics when analyzing the effectiveness of marketing policies and performance has been adopted by many and is constantly evolving. Making marketing more accountable is an opportunity to test the effectiveness of your marketing efforts. Developing ways to measure marketing performance has become a hot topic in today’s marketing discussions. There are two sufferers who are more interested than others in solving the problem. The first party, represented by Chief Executive Officers, Chief Financial Officers and Board Directors, wants to know that investing in marketing brings returns. Marketers getting the second party to prove the same thing.

The solution to the problem took the shape and form of a scorecard, no surprise. Therefore, marketing is the last in the list of business functions to accept scorecards – a concise report containing a set of metrics related to a company’s performance as a means of measuring marketing activities to provide a comprehensive view of the company’s performance above business area.

The next question here is how many metrics and which ones in particular make a scorecard comprehensive and all-encompassing. Some economists claim that there are over 50 marketing metrics; However, it is clear that not all are equally important. A scorecard capable of accurately diagnosing and predicting the future of marketing performance includes the fundamental metrics that evaluate only what really matters.

The fundamental metrics should include not only easily measurable quantified metrics (e.g. number of new customers, ROI) but also non-quantified ones (brand awareness, brand equity), since the latter can determine most of the long-term vitality of a company. Therefore, crafting a perfect scorecard to measure marketing performance requires some training. Surveys show that the existing ones may still need to be refined and updated.