Marketing Metrics

1
Marketing Metrics
2
Marketing Metrics Marketing at the Core of the
Organization
Product and Portfolio Management
Customer Profitability
Operations
Logistics
Sales Force
Margins and Profits
Channel Management And Sales Force
Share of Hearts, Minds, and Markets
Marketing and Finance
Pricing Strategy
Promotions
Advertising Media and Web Metrics
Finance
The Trade
Advertising Agency
3
Market Share

• Unit Market Share () Unit Sales () / Total
  Market Unit Sales ()
• Purpose Measure of Competitiveness
• Revenue Market Share () Sales Revenue () /
  Total Market Revenue ()
• Purpose Measure of Competitiveness

4
Relative Market Share and Market Concentration

• Relative Market Share (I) () Brands Market
  Share (,) / Largest Competitors Market Share
  (,)
• Purpose To assesses a firms or a brands
  success and its position in the market
• Market Concentration The degree to which a
  relatively small number of firms accounts fro a
  large proportion of the market. This is also
  known as the concentration ratio. It is usually
  calculated for the largest three or four firms in
  a market.
• Three (Four) Firm Concentration Ratio The total
  (sum) of the market shares held by the leading
  three (four) competitors in a market

5
Brand Development Index andCategory Development
Index

• Brand Development Index (BDI) (I) Brand Sales
  to Group ()/Households () in the Group /
  Total Brand Sales ()/Total Household ()
• Purpose Regional or segment differences in brand
  purchases and consumption
• Category Development Index (CDI) (I) Category
  Sales to Group ()/Households in Group () /
  Total Category Sales ()/Total Household ()
• Purpose Regional or segment differences in
  category purchases and consumption

6
Penetration

• Market Penetration () Customers who have
  purchased a product in the category () / Total
  Population ()
• Purpose Measured category acceptance by a
  defined population
• Brand Penetration () Customers who have
  purchased the brand () / Total Population ()
• Purpose Measured brand acceptance by a defined
  population
• Penetration Share () Brand Penetration () /
  Market Penetration () (or Customer who have
  purchased the brand () / Customers who have
  purchased a product in the category ())
• Purpose Comparative acceptance of brand within
  category

7
Share of Requirements

• Also known as share of wallet
• Unit Share of Requirements () Brand purchases
  () / Total category purchased by brand buyers
  ()
• Revenue Share of Requirements () Brand
  purchases () / Total category purchased by brand
  buyers ()
• Purpose Level of commitment to a brand by its
  existing customers

8
Heavy Usage Index

• Heavy Usage Index (I) Average total purchases
  in category by brand customers (,) / Average
  total purchases in category by all customers for
  that category (,)
• Also Market share () / Penetration Share ()
  Share of Requirements ()
• Purpose Measures relative usage of a category by
  customers for a specific brand

9
Metrics of the Hierarchy of Effects (I)

• Awareness The percentage of potential customers
  or consumers who recognizeor namea given brand.
• Top of Mind The first brand that comes to mind
  when a customer is asked an unprompted question
  about a category.
• Ad awareness The percentage of target consumers
  or accounts who demonstrate awareness (aided or
  unaided) of a brands advertising. This metric
  can be campaign- or media-specific, or it can
  cover all advertising.
• Brand/Product Knowledge The percentage of
  surveyed customers who demonstrate specific
  knowledge or benefits about a brand or product.

10
Metrics of the Hierarchy of Effects (II)

• Attitudes
• Attitudes/Liking/Image
• Perceived Value for Money
• Perceived Quality
• Intention to Purchase
• Usages
• A measure of customers self-reported behavior

11
Customer Satisfaction, Willingness to Recommend,
and Willingness to Search

• Customer Satisfaction The number of customers,
  or percentage of total customers, who reported
  experience with a firm, its products, or its
  services (rating) exceeds specified satisfaction
  goals
• Willingness to Recommend () The percentage of
  surveyed customers who indicate that they would
  recommend a brand to friends
• Willingness to Search () The percentage of
  customers willing to delay purchases, change
  stores, or reduce purchase quantities to avoid
  switching brands