Measuring Marketing
110+ Key Metrics Every Marketer Needs
2nd Edition
Published on 18. January 2013
Book
Paperback/Softback
320 pages
978-1-118-15374-1 (ISBN)
Description
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 world's 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 organization's marketing investments. CEOs and CFOs regularly ask for one simple way to assess the efficacy of marketing campaigns, but the fact is that there isn't 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.
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 world's 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 organization's marketing investments. CEOs and CFOs regularly ask for one simple way to assess the efficacy of marketing campaigns, but the fact is that there isn't 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.
More details
Other editions
Previous edition
Book
11/2006
1st Edition
Wiley
€32.90
Article exhausted; check for reprint
Person
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, where he received the BAC Outstanding Teaching Award in 2012, 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.
Content
Acknowledgments xiii
Introduction xv
SECTION I CORPORATE FINANCIAL METRICS 1
CHAPTER 1 Revenue 3
CHAPTER 2 Gross Profit 5
CHAPTER 3 Value-to-Volume Ratio 7
CHAPTER 4 Net Profit 9
CHAPTER 5 Earnings-Based Value 13
CHAPTER 6 Return on Sales 17
CHAPTER 7 Return on Assets 19
CHAPTER 8 Return on Equity 21
SECTION II MARKETING PLANNING METRICS 25
CHAPTER 9 Market Share 27
CHAPTER 10 Relative Market Share 29
CHAPTER 11 Market Growth 31
CHAPTER 12 Market Demand 33
CHAPTER 13 Market Penetration 35
CHAPTER 14 Program/Non-Program Ratio 41
CHAPTER 15 Program/Payroll Ratio 43
CHAPTER 16 Causal Forecast 45
CHAPTER 17 Time-Series Analysis 49
SECTION III BRAND METRICS 55
CHAPTER 18 Brand Equity 57
CHAPTER 19 Brand Scorecards 61
CHAPTER 20 Brand Premium 65
CHAPTER 21 Brand Contribution and Review Analysis 71
SECTION IV CUSTOMER METRICS 75
CHAPTER 22 Net Sales Contribution 79
CHAPTER 23 Time-Driven Activity-Based Costing 81
CHAPTER 24 Segment Profitability 83
CHAPTER 25 Customer Profitability 87
CHAPTER 26 Share of Customer 89
CHAPTER 27 Return on CustomerSM 91
CHAPTER 28 New Customer Gains 93
CHAPTER 29 Customer Acquisition Costs 95
CHAPTER 30 Cost per Lead 99
CHAPTER 31 Retention Rate 103
CHAPTER 32 Churn Rate 107
CHAPTER 33 Customer Losses 109
CHAPTER 34 Consumer Franchise 111
CHAPTER 35 Customer Equity and Customer Lifetime Value (CLTV) 115
CHAPTER 36 Customer Brand Value 119
SECTION V PRODUCT/OFFERING METRICS 121
CHAPTER 37 Usage 123
CHAPTER 38 New Product Purchase Rate 125
CHAPTER 39 Marketing Cost per Unit 129
SECTION VI PRICE METRICS 131
CHAPTER 40 Price 133
CHAPTER 41 Markup Price 137
CHAPTER 42 Target Return Price 141
CHAPTER 43 Sales Price Variance 143
CHAPTER 44 Markdown Goods Percentage 147
CHAPTER 45 Profit Impact 149
SECTION VII ADVERTISING/PROMOTION METRICS 153
CHAPTER 46 Share of Voice 155
CHAPTER 47 Recall 157
CHAPTER 48 Recognition 161
CHAPTER 49 Reach 163
CHAPTER 50 Frequency 165
CHAPTER 51 Gross Rating Points (GRP) 167
CHAPTER 52 Cost per Gross Rating Point (CPP) 171
CHAPTER 53 Response Rate 173
CHAPTER 54 Conversion Rate 175
CHAPTER 55 Advertising-to-Sales Ratio 177
CHAPTER 56 Promotion Profit 181
SECTION VIII DIRECT MARKETING METRICS 185
CHAPTER 57 Direct Marketing Revenue Goals 187
CHAPTER 58 Direct Marketing Profit Goals 191
CHAPTER 59 Direct Marketing Gross Profit 193
CHAPTER 60 Direct Marketing Net Profit 195
CHAPTER 61 Direct Marketing ROI 197
SECTION IX ONLINE/DIGITAL/SOCIAL METRICS 199
CHAPTER 62 Gross Page Impressions (or Gross Page Requests) 201
CHAPTER 63 Word of Mouth (WOM) 203
CHAPTER 64 Total Clicks 205
CHAPTER 65 Click-Through Rate (CTR) 207
CHAPTER 66 Cost per Click 209
CHAPTER 67 Cost per Action 211
CHAPTER 68 Pay per Lead 213
CHAPTER 69 Activity Ratio for Social Media 215
CHAPTER 70 Deductive Social Media ROI 217
CHAPTER 71 Resolution Time 219
CHAPTER 72 Social Media Profitability 221
SECTION X PLACE/DISTRIBUTION METRICS 223
CHAPTER 73 Cost per Sales Dollar 225
CHAPTER 74 Transactions per Customer 227
CHAPTER 75 Transactions per Hour 229
CHAPTER 76 Average Transaction Size 231
CHAPTER 77 Average Items per Transaction 233
CHAPTER 78 Hourly Customer Traffic 237
CHAPTER 79 Returns to Net Sales 239
CHAPTER 80 Inventory Turnover 241
CHAPTER 81 Percent Inventory Carrying Costs 243
CHAPTER 82 Gross Margin Return on Inventory Investment 245
CHAPTER 83 Sales per Square Foot 247
CHAPTER 84 Sales/Profits per Employee 249
CHAPTER 85 Retail Close Ratio 251
CHAPTER 86 Retailer's Margin Percentage 253
CHAPTER 87 Percent Utilization of Discounts 255
CHAPTER 88 Shrinkage to Net Sales 257
SECTION XI SALES METRICS 259
CHAPTER 89 Net Sales Contribution 263
CHAPTER 90 Absolute Index (AI) 265
CHAPTER 91 Relative Index 267
CHAPTER 92 Percent of Sales 269
CHAPTER 93 Independent Sales Representative Analysis 273
CHAPTER 94 Turnover Rate 275
CHAPTER 95 Recruiting 279
CHAPTER 96 Breakdown Approach 281
CHAPTER 97 Workload Approach 285
CHAPTER 98 Sales Performance Quotas 289
CHAPTER 99 Average Sales per Call 295
CHAPTER 100 Close Process and Close Ratio 297
CHAPTER 101 Cost per Call 301
CHAPTER 102 Break-Even Sales Volume 303
CHAPTER 103 Sales Productivity 305
CHAPTER 104 Four Factor Model 307
CHAPTER 105 Sales Variance Analysis 309
CHAPTER 106 Sales Volume Variance 313
CHAPTER 107 Straight Salary 315
CHAPTER 108 Straight Commission Plans 319
CHAPTER 109 Profit-Based Commission 321
CHAPTER 110 Salary Plus Commission or Bonus 323
CHAPTER 111 Salary Plus Commission and Bonus 327
CHAPTER 112 Commission Plus Bonus 329
CHAPTER 113 Team Selling Compensation 331
About the Author 335
Index 337
Introduction xv
SECTION I CORPORATE FINANCIAL METRICS 1
CHAPTER 1 Revenue 3
CHAPTER 2 Gross Profit 5
CHAPTER 3 Value-to-Volume Ratio 7
CHAPTER 4 Net Profit 9
CHAPTER 5 Earnings-Based Value 13
CHAPTER 6 Return on Sales 17
CHAPTER 7 Return on Assets 19
CHAPTER 8 Return on Equity 21
SECTION II MARKETING PLANNING METRICS 25
CHAPTER 9 Market Share 27
CHAPTER 10 Relative Market Share 29
CHAPTER 11 Market Growth 31
CHAPTER 12 Market Demand 33
CHAPTER 13 Market Penetration 35
CHAPTER 14 Program/Non-Program Ratio 41
CHAPTER 15 Program/Payroll Ratio 43
CHAPTER 16 Causal Forecast 45
CHAPTER 17 Time-Series Analysis 49
SECTION III BRAND METRICS 55
CHAPTER 18 Brand Equity 57
CHAPTER 19 Brand Scorecards 61
CHAPTER 20 Brand Premium 65
CHAPTER 21 Brand Contribution and Review Analysis 71
SECTION IV CUSTOMER METRICS 75
CHAPTER 22 Net Sales Contribution 79
CHAPTER 23 Time-Driven Activity-Based Costing 81
CHAPTER 24 Segment Profitability 83
CHAPTER 25 Customer Profitability 87
CHAPTER 26 Share of Customer 89
CHAPTER 27 Return on CustomerSM 91
CHAPTER 28 New Customer Gains 93
CHAPTER 29 Customer Acquisition Costs 95
CHAPTER 30 Cost per Lead 99
CHAPTER 31 Retention Rate 103
CHAPTER 32 Churn Rate 107
CHAPTER 33 Customer Losses 109
CHAPTER 34 Consumer Franchise 111
CHAPTER 35 Customer Equity and Customer Lifetime Value (CLTV) 115
CHAPTER 36 Customer Brand Value 119
SECTION V PRODUCT/OFFERING METRICS 121
CHAPTER 37 Usage 123
CHAPTER 38 New Product Purchase Rate 125
CHAPTER 39 Marketing Cost per Unit 129
SECTION VI PRICE METRICS 131
CHAPTER 40 Price 133
CHAPTER 41 Markup Price 137
CHAPTER 42 Target Return Price 141
CHAPTER 43 Sales Price Variance 143
CHAPTER 44 Markdown Goods Percentage 147
CHAPTER 45 Profit Impact 149
SECTION VII ADVERTISING/PROMOTION METRICS 153
CHAPTER 46 Share of Voice 155
CHAPTER 47 Recall 157
CHAPTER 48 Recognition 161
CHAPTER 49 Reach 163
CHAPTER 50 Frequency 165
CHAPTER 51 Gross Rating Points (GRP) 167
CHAPTER 52 Cost per Gross Rating Point (CPP) 171
CHAPTER 53 Response Rate 173
CHAPTER 54 Conversion Rate 175
CHAPTER 55 Advertising-to-Sales Ratio 177
CHAPTER 56 Promotion Profit 181
SECTION VIII DIRECT MARKETING METRICS 185
CHAPTER 57 Direct Marketing Revenue Goals 187
CHAPTER 58 Direct Marketing Profit Goals 191
CHAPTER 59 Direct Marketing Gross Profit 193
CHAPTER 60 Direct Marketing Net Profit 195
CHAPTER 61 Direct Marketing ROI 197
SECTION IX ONLINE/DIGITAL/SOCIAL METRICS 199
CHAPTER 62 Gross Page Impressions (or Gross Page Requests) 201
CHAPTER 63 Word of Mouth (WOM) 203
CHAPTER 64 Total Clicks 205
CHAPTER 65 Click-Through Rate (CTR) 207
CHAPTER 66 Cost per Click 209
CHAPTER 67 Cost per Action 211
CHAPTER 68 Pay per Lead 213
CHAPTER 69 Activity Ratio for Social Media 215
CHAPTER 70 Deductive Social Media ROI 217
CHAPTER 71 Resolution Time 219
CHAPTER 72 Social Media Profitability 221
SECTION X PLACE/DISTRIBUTION METRICS 223
CHAPTER 73 Cost per Sales Dollar 225
CHAPTER 74 Transactions per Customer 227
CHAPTER 75 Transactions per Hour 229
CHAPTER 76 Average Transaction Size 231
CHAPTER 77 Average Items per Transaction 233
CHAPTER 78 Hourly Customer Traffic 237
CHAPTER 79 Returns to Net Sales 239
CHAPTER 80 Inventory Turnover 241
CHAPTER 81 Percent Inventory Carrying Costs 243
CHAPTER 82 Gross Margin Return on Inventory Investment 245
CHAPTER 83 Sales per Square Foot 247
CHAPTER 84 Sales/Profits per Employee 249
CHAPTER 85 Retail Close Ratio 251
CHAPTER 86 Retailer's Margin Percentage 253
CHAPTER 87 Percent Utilization of Discounts 255
CHAPTER 88 Shrinkage to Net Sales 257
SECTION XI SALES METRICS 259
CHAPTER 89 Net Sales Contribution 263
CHAPTER 90 Absolute Index (AI) 265
CHAPTER 91 Relative Index 267
CHAPTER 92 Percent of Sales 269
CHAPTER 93 Independent Sales Representative Analysis 273
CHAPTER 94 Turnover Rate 275
CHAPTER 95 Recruiting 279
CHAPTER 96 Breakdown Approach 281
CHAPTER 97 Workload Approach 285
CHAPTER 98 Sales Performance Quotas 289
CHAPTER 99 Average Sales per Call 295
CHAPTER 100 Close Process and Close Ratio 297
CHAPTER 101 Cost per Call 301
CHAPTER 102 Break-Even Sales Volume 303
CHAPTER 103 Sales Productivity 305
CHAPTER 104 Four Factor Model 307
CHAPTER 105 Sales Variance Analysis 309
CHAPTER 106 Sales Volume Variance 313
CHAPTER 107 Straight Salary 315
CHAPTER 108 Straight Commission Plans 319
CHAPTER 109 Profit-Based Commission 321
CHAPTER 110 Salary Plus Commission or Bonus 323
CHAPTER 111 Salary Plus Commission and Bonus 327
CHAPTER 112 Commission Plus Bonus 329
CHAPTER 113 Team Selling Compensation 331
About the Author 335
Index 337