Key Marketing Metrics: The 50+ Metrics Every Manager Needs to Know

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They can help managers identify the strengths and weaknesses in both strategies and execution. Mathematically defined and widely disseminated, metrics can become part of a precise, operational language within a firm. Data availability and globalisation of metrics A further challenge in metrics stems from wide variations in the availability of data between industries and geographies. Recognising these variations, we have tried to suggest alternative sources and procedures for estimating some of the metrics in this book.

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Fortunately, although both the range and type of marketing metrics may vary between countries,6 these differences are shrinking rapidly. Ambler et al. Knowing which numbers to crunch, however, is a skill that develops over time. Toward that end, managers must practise the use of metrics and learn from their mistakes. By working through the examples in this book, we hope our readers will gain both confidence and a firm understanding of the fundamentals of data-based marketing. With time and experience, we trust that you will also develop an intuition about metrics, and learn to dig deeper when calculations appear suspect or puzzling.

Ultimately, with regard to metrics, we believe many of our readers will require not only familiarity but also fluency. That is, managers should be able to perform relevant calculations on the hoof — under pressure, in board meetings and during strategic deliberations and negotiations. Although not all readers will require that level of fluency, we believe it will be increasingly expected of candidates for senior management positions, especially those with significant financial responsibility. Organisation of the text This book is organised into chapters that correspond to the various roles played by marketing metrics in enterprise management.

Individual chapters are dedicated to metrics used in promotional strategy, advertising and distribution, for example. Each chapter is composed of sections devoted to specific concepts and calculations. Inevitably, we must present these metrics in a sequence that will appear somewhat arbitrary.

In organising this text, however, we have sought to strike a balance between two goals: 1 to establish core concepts first and build gradually toward increasing sophistication, and 2 to group related metrics in clusters, helping our readers recognise patterns of mutual reinforcement and interdependence. In Figure 1. The central issues addressed by the metrics in this book are as follows: 4 l Chapter 2 — Share of hearts, minds and markets: Customer perceptions, market share and competitive analysis. Distribution coverage and logistics.

Key Marketing Metrics : Paul W Farris (author), : : Blackwell's

Models for consumer response to advertising. Specialised metrics for Web-based campaigns.


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Within each section, we open with definitions, formulas and a brief description of the metrics covered. Next, in a passage titled Construction, we explore the issues surrounding these metrics, including their formulation, application, interpretation and strategic ramifications. We provide examples to illustrate calculations, reinforce concepts and help readers verify their understanding of key formulas. That done, in a passage titled Data Sources, Complications and Cautions, we probe the limitations of the metrics under consideration, and potential pitfalls in their use.

Toward that end, we also examine the assumptions underlying these metrics.

4 Digital Marketing Metrics That Help Determine ROI

Finally, we close each section with a brief survey of Related Metrics and Concepts. In organising the text in this way, our goal is straightforward: most of the metrics in this book have broad implications and multiple layers of interpretation. Doctoral theses could be devoted to many of them, and have been written about some. If the devil is in the details, we want to identify, locate and warn readers against him, but not to elaborate his entire demonology.

Consequently, we discuss each metric in stages, working progressively toward increasing levels of sophistication. We invite our readers to sample this information as they see fit, exploring each metric to the depth that they find most useful and rewarding.

ISBN 10: 0273722034

With an eye toward accessibility, we have also avoided advanced mathematical notation. Most of the calculations in this book can be performed by hand, on the back of the proverbial envelope. More complex or intensive computations may require a spreadsheet. Nothing further should be needed. Reference materials Throughout this text, we have highlighted formulas and definitions for easy reference. We have also included outlines of key terms at the beginning of each chapter and section.

Within each formula, we have followed this notation to define all inputs and outputs.

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We have used the pound sign for brevity, but any other currency, including the euro, dollar, yen, dinar or yuan, would be equally appropriate. For readability, we have intentionally omitted the step of multiplying decimals by to obtain percentages. N number Used for such measures as unit sales or number of competitors. R rating Expressed on a scale that translates qualitative judgements or preferences into numeric ratings. Ratings have no intrinsic meaning without reference to their scale and context. I index A comparative figure, often linked to or expressive of a market average.

Example: the consumer price index. Indexes are often interpreted as a percentage. Clark and T. Ambler, T. Barwise, P. Clark, B. Abela and T. Hauser, J.

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Kaplan, R. Table 1. Three out of five consumers shopped for gifts at WalMart this past holiday season. A quarter of all shoppers indicate that they are spending more of their clothing budget at Wal-Mart now compared with a year ago. But this raises a host of questions.


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That is, how broadly do we define our competitive universe? Which units are used? Where in the value chain do we capture our information? What time frame will maximise our signal-to-noise ratio? In a metric as important as market share, and in one as closely monitored for changes and trends, the answers to such questions are crucial.

In this chapter, we will address them and also introduce key components of market share, including penetration share, heavy usage index and share of requirements. Increasingly, marketers rely on these as leading indicators of future changes in share. Scope of market definition.

Channel level analysed. Time period covered. Measure of competitiveness. Unit market share Unit sales as a percentage of market unit sales. Can use either unit or revenue shares.