MARKETING METRICS

Marketing Metrics

Marketing Metrics

Introduction

Whenever a marketing campaign or activity is being organized, CEO and CFO of the companies ask their marketing heads to show the results of those campaigns. Earlier, it has been perceived that the sole purpose of marketing efforts is to support the sales of the company's products. But the fact is that, it is just one part of the entire marketing effort. The problem with the CEO's and CFO's is that they want profits and revenues from the efforts and investments of their marketing, and marketers remain unable to justify their efforts in this regard. It had been a key issue for the marketers to quantify their marketing efforts, and present the statistics to their CEO's and CFO's. However, with the emergence of new and productive concepts in marketing, there had also been the introduction of marketing metrics for the marketers (Smith, 2012).

Marketing metrics help the marketers to justify their efforts and investment on the marketing campaigns. These metrics help the marketers to quantify their spending, and provide the CEO's and CFO's with the return on their marketing investments. These metrics also help the marketers to measure the value that these marketing campaigns bring on the overall performance of the company. Furthermore, it also allows the marketers to signify the contribution these metrics have on the financial performance of the company (Ambler and Roberts, 2008).

Marketers have identified several marketing metrics that are used and applicable for different purposes. Some are used to identify the return on every marketing dollar that has been spent; some are used to identify the relative market share of the company. This depends on which metrics are useful for the company, and how the company might utilizes those metrics in order to achieve the desired results (Solcansky, Sychrova and Milichovsky, 2011).

This paper will highlight several key marketing metrics, which are used in today's marketing tactics as a tool to quantify the investment on the marketing campaigns of the company. Furthermore, the paper will also draws attention to how those marketing metrics can be used and what are the purposes of these metrics. Then, there will be the discussion on how those metrics can help the company to measure the performance of the company.

Measures for Marketing Metrics

Marketing metrics are used for various purposes. They help the marketers to identify the significance of their investment on the marketing campaigns, or it may also help in identifying the results of their marketing failures that eventually resulted in the overall downfall of the company.

Marketing metrics are used to help the marketers to diagnose the current performance of their marketing activities and how their marketing expenditures help in justifying their efforts on those campaigns. This approach is known as “Diagnostic Metrics”. Then, there is also the notion that these metrics help the marketers to identify the future opportunities from marketing perspective. They help the company and especially the marketers to identify which are useful tools of marketing and which mediums provide more profitability and revenue generation opportunities for the ...