Measuring marketing productivitiesPrepared by: Sivozhelezov P.A.

Supervisor: Ivashkova N.I.

International Business School

Contents

Introduction

The Chain of Marketing Productivity

Elements of the chain

Practical examples

Sources

Introduction

Lack of accountability undermines marketers’ credibility

Effective measurement of MP is essential for establishing key role of marketing within the firm

Further research is subject essential

The Chain of MP

Strategies and tactics

Setting strategic direction for the firm

Concept of Marketing Investment

Creation of a ‘Differentiated brand’

Differentiated Brand

Charge higher prices

Attain greater market shares

DB are more responsive to advertising and promotion

DB have lower selling costs

Customer impact

Marketing actions influence customer loyalty, satisfaction, preference and purchase intention

Marketing Assets

Brand equity - the differential effect that brand knowledge has on consumer or customer response to the marketing of that brand

Keller, 2002

Financial World and Interbrand

Apple($98,3b) and Google($93,2b)

Market Impact

Long-term impact vs. Short term impact

Sales promotion(ST)

Service quality improvements & Advertising(LT)

Financial impact

Marketing expenditures are considered investments

ROI

Impact on the value of the firm

Brand extension announcements lead to abnormal ROS

Brand equity reduces financial risk and related to lower cost of capital and thus to higher market capitalization

Practical examples

Watch the sales numbers before, during and after each campaign

Practical examples

Using customer surveys

Practical examples

Monitoring website analytics