marketing metrics

marketing metrics

Introduction

The purpose of this paper is to break down and analyze marketing metrics, brand breakthrough and show the importance of marketing. The functions impact the performance and viability of the marketing department in the organization. A company should focus on its marketing procedures so that more profits can be realized. A company whose marketing plan is superior is able to achieve more success since it becomes more recognizable both locally and globally.

Theory– Article Deconstruction

The articles to be broken analyzed include marketing metrics, brand breakthrough and showing the importance of marketing. I will be using the MEAL plan to deconstruct the articles which begins by showing the main points, the evidence, analysis and linking.

Marketing metrics

Many marketers find it challenging to measure and determine the impact of marketing in the industry. Many individuals find it difficult to comprehend the meaning to the different types of metrics used in the market. Management needs to have a clear understanding of the metrics in order to use them efficiently and correct the marketers in case of ineffective utilization. The metrics used in marketing include the market share and net promoter score (Bendle, 2016).

Market share

Managers in many organizations alternatively used market share as a unit for performance determination and as an organizational goal. Utilizing market share is quite challenging to back up as many of the managers understand the main aim of an organization is to maximize the profitability of the owners and to cater for the welfare of the workers and clients.  Since the size of the market share does not determine the rate of profits generated, priority should be based on maximizing the wealth of the owners (Bendle, 2016). The managers should concentrate on increasing the company profits rather than optimizing market share.

Net promoter score

Most managers embrace net promoter scores in the marketing industry. The company determines the likelihood of a recommendation to a third party by its customer. They are rated from zero to ten, with those choosing nine or ten being the promoters; ones on six and below are detractors. The score is determined by finding the difference between the amount of promoters and detractors. The score was associated with profitability increment which is not true. For instance, a company might have to reduce the price of a commodity whose demand is relatively inelastic. The reduction in price will be automatically followed by an instant recommendation from its clients to their friends. The revenue generated from the product will thus fall while the score goes up (Bendle, 2016). Therefore, using net promoter score as a performance metric is not advisable. Putting into practice the net promoter score will not enhance company profitability.

Brand breakthrough

Advancement in technology has changed the face of marketing over the years. The marketing industry has been able to evolve from the traditional marketing models. Most of the app companies have been able to penetrate the market and receive recognition from majority of the clients within a period of less than ten years (Gallagher, 2017). Most of these brands are able to resonate with majority of the clients as compared to other which have been in the market for more than ten years. Some of the brands include instagram, Airbnb and uber. All of the brands started as faddish development with a little resilience from the clients but later gained prominence in the face of the consumers.

Instagram

Instagram began as a short term popular brand where individuals could take spontaneous photographs with friends. The high quality photos associated with the app enticed facebook to procure the brand. The acquisition led to the increment in the number of the brand users. Today, the app has gained prominence with users exceeding five hundred million across the market.

Airbnb

Airbnb also began as faddish app with derangement views from the market. It is a message app where individuals open their residences to host non residents. The app has however transformed travels and vacations. Individuals are able to choose homes to spend on travels. The app avails home photos and enables negotiations on price for better travel experiences (Gallagher, 2017). It has broadened its market and gained popularity with one hundred and forty guests using it for their travels.

Uber

The brand initially began as an amusing mode of summoning a black vehicle with a phone application. Today, majority of the people utilize the app for cab services due to its cost efficiency over other travel agencies. The brand has gained prominence in over seventy nations all over the globe and also has diversified its operations to meal delivery (Gallagher, 2017).

Showing the importance of marketing

Many marketing functions experience intense force from other functions to show their importance in the company’s operations. The marketers create product knowledge, loyalty of products and operational metrics. The metrics however do not relate with each other as one could demonstrate the initiatives a success and others as a squander of resources depending on the organization (Hanssens, 2016). The difference is initiated by different factors, that is, effectiveness and efficiency. Efficiency determines capability to avail performance with minimal capital while effectiveness determines the capability to attain an objective.

Majority of the organizations pay little attention and priority on the marketing function. Marketing effectiveness is given more priority but the marketers are considered as juniors in the organization. Decisions on pricing and logistics are carried out in other functions which enhance performance. However, functionality of other departments cannot be availed without budgeting which is initiated by the marketing department (Hanssens, 2016).

Budget allocation decisions

Marketers determine the critical fields to allocate finances optimally in order to maximize return on investments and reduce insignificant costs in other functions. The market officers carry out budget allocations to media platforms for advertising. The organizational owners also make allocation decisions based on the marketer’s decisions. All the decisions made by the marketer are utilized and implemented by the senior management in resource allocation.

 

Case Study Application: Coca-Cola Company

The Coca-Cola Company has been one of the most favored companies in the world. It has a very competitive marketing strategy. It originally began as a syrup company where it had little prevalence in the market. Over the years, it has grown through integration and coordination of its functionalities. Coca cola is a multinational company with branches all over the globe where it initiates comprehensive marketing strategies that have helped it gain a competitive advantage over other firms in the market. Coca cola prioritizes on its marketing strategies which have greatly improved it sales (Wang, 2015).

Conclusion

In conclusion, marketing is an important strategy to enhance competition and reliability. Reliability is in the sense that, the company’s customer finds it more convenient in a way that the delivery of goods is faster. Customers feel more accommodated by the company and their needs are met efficiently.

References

Bendle, N. T., &Bagga, C. K. (2016). The Metrics that Marketers muddle. MIT Sloan Management Review, 57(3), 73-82.

Gallagher, L., Nusca, A., Kokalitcheva, K., Hackett, R., Lev-Ram, M., Korosec, K., & Rao, L. (2017). Breakthrough brands 2017. Fortune, 75(1), 64-69.

Hanssens, D. M., & Pauwels, K. H. (2016). Demonstrating the Value of Marketing. Journal of Marketing, 80(6), 173-190. doi:10.1509/jm.15.0417

Wang, M. (2015). Brief Analysis of Sports Marketing Strategy Adopted by Coca Cola Company. Asian Social Science, 11(23), 22.

 

Place this order or similar order and get an amazing discount. USE Discount code “GWEXDDSRGCF10” for 10% discount