The demands of a more dynamic, globalized business world have led to sophisticated methods for quantifying marketing success. This informative guide defines and explains the use of more than 110 key marketing metrics for the success of your business. In eleven focused sections, this resource makes otherwise complex topics understandable. Written for marketing professionals accountable for measurable results as well as senior executives who need a firm understanding of marketing’s impact on a business or product line, it clearly explains the metrics that you can use to measure marketing.
Along the way, you'll be introduced to a variety of important analytical tools, from brand, customer, and sales metrics to advertising, price, and distributions metrics. And with the addition of new examples and metrics—including significant updates to the online/digital/social area— Measuring Marketing, Third Edition will put you in a better position to excel at this difficult endeavor.
Table of Contents:
Part 1: Corporate Financial Metrics 1
Chapter 1: Revenue 3
Chapter 2: Gross Profit 7
Chapter 3: Value-to-Volume Ratio 9
Chapter 4: Net Profit 13
Chapter 5: Earnings-Based Value 17
Chapter 6: Return on Sales 23
Chapter 7: Return on Assets 25
Chapter 8: Return on Equity 27
Part 2: Marketing Planning Measures 31
Chapter 9: Market Share 33
Chapter 10: Relative Market Share 35
Chapter 11: Market Growth 37
Chapter 12: Market Demand 39
Chapter 13: Market Penetration 41
Chapter 14: Program/Nonprogram Ratio 47
Chapter 15: Program/Payroll Ratio 49
Chapter 16: Causal Forecast 51
Chapter 17: Time Series Analysis 57
Part 3: Brand Metrics 63
Chapter 18: Brand Equity 65
Chapter 19: Brand Scorecards 71
Chapter 20: Brand Premium 75
Chapter 21: Brand Contribution and Review Analysis 81
Part 4: Customers Metrics 85
Chapter 22: Net Sales Contribution 91
Chapter 23: Time-Driven Activity-Based Costing 93
Chapter 24: Segment Profitability 95
Chapter 25: Customer Profitability 99
Chapter 26: Share of Customer 101
Chapter 27: Return on CustomerSM 105
Chapter 28: New Customer Gains 109
Chapter 29: Customer Acquisition Costs 113
Chapter 30: Cost Per Lead 117
Chapter 31: Retention Rate 121
Chapter 32: Churn Rate 125
Chapter 33: Consumer Franchise 129
Chapter 34: Customer Equity and Customer Lifetime Value 133
Chapter 35: Customer Brand Value 137
Chapter 36: Customer Losses 139
Part 5: Product/Offering Metrics 143
Chapter 37: Usage 145
Chapter 38: New Product Purchase Rate 147
Chapter 39: Marketing Cost Per Unit 151
Part 6: Price Matrics 153
Chapter 40: Price 155
Chapter 41: Mark-Up Pricing 159
Chapter 42: Target Return Pricing 163
Chapter 43: Sales Price Variance 165
Chapter 44: Markdown Goods Percentage 169
Chapter 45: Profit Impact 171
Part 7: Advertising/Promotion Metrics 175
Chapter 46: Share of Voice 177
Chapter 47: Recall 179
Chapter 48: Recognition 183
Chapter 49: Reach 185
Chapter 50: Frequency 187
Chapter 51: Gross Rating Points 189
Chapter 52: Cost Per Gross Rating Point 193
Chapter 53: Response Rate 195
Chapter 54: Conversion Rate 199
Chapter 55: Advertising-To-Sales Ratio 201
Chapter 56: Promotion Profit 203
Part 8: Direct Marketing Metrics 207
Chapter 57: Direct Marketing Revenue Goals 209
Chapter 58: Direct Marketing Profit Goals 213
Chapter 59: Direct Marketing Gross Profit 215
Chapter 60: Direct Marketing Net Profit 217
Chapter 61: Direct Marketing Return On Investment 219
Part 9: Digital/Social Metrics 221
Chapter 62: Gross Page Impressions (Or Gross Page Requests) 223
Chapter 63: Word of Mouth 225
Chapter 64: Total Clicks 1
Chapter 65: Click Through Rate 229
Chapter 66: Cost Per Click 231
Chapter 67: Cost Per Action 235
Chapter 68: Pay Per Lead 237
Chapter 69: Activity Ratio for Social Media 239
Chapter 70: Deductive Social Media Return on Investment 241
Chapter 71: Resolution Time 243
Chapter 72: Social Media Profitability 245
Chapter 73: Bounce Rate 247
Chapter 74: Return On Advertising Spend 249
Part 10: Place/Distribution Metrics 251
Chapter 75: Cost Per Sales Dollar 253
Chapter 76: Transactions Per Customer 255
Chapter 77: Transactions Per Hour 257
Chapter 78: Average Transaction Size 259
Chapter 79: Avergage Items Per Transaction 261
Chapter 80: Hourly Customer Traffic 265
Chapter 81: Returns to Net Sales 267
Chapter 82: Inventory Turnover 269
Chapter 83: Percent Inventory Carrying Costs 271
Chapter 84: Gross Margin Return on Inventory Investment 273
Chapter 85: Sales Per Square Foot 277
Chapter 86: Sales/Profits Per Employee 279
Chapter 87: Retail Close Ratio 281
Chapter 88: Retail Margin Percentage 285
Chapter 89: Percent Utilization of Discounts 287
Chapter 90: Shrinkage to Net Sales 289
Part 11: Sales Metrics
Chapter 91: Net Sales Contribution 297
Chapter 92: Absolute Index 299
Chapter 93: Relative Index 303
Chapter 94: Percent of Sales 305
Chapter 95: Independent Sales Representative Analysis 309
Chapter 96: Turnover Rate 311
Chapter 97: Recruiting 315
Chapter 98: Breakdown Approach 317
Chapter 99: Workload Approach 321
Chapter 100: Sales Performance Quotas 327
Chapter 101: Average Sales Per Call 335
Chapter 102: Close Process and Close Ratio 337
Chapter 103: Cost Per Call 341
Chapter 104: Break-Even Sales Volume 343
Chapter 105: Sales Productivity 347
Chapter 106: Four Factor Model 351
Chapter 107: Sales Variance Analysis 355
Chapter 108: Sales Volume Variance 361
Chapter 109: Sales Enablement 365
Chapter 110: Net Promoter ScoreR 367
Index
About the Author :
John A. Davis is Chairman of Brand New View LLC, USA. His career spans the academic and business worlds, as a senior executive and leader in both. He is the author of several acclaimed marketing books. John is a visiting professor at the International Olympic Academy in Olympia, Greece, and has also taught at University of Washington, UC Davis and Stanford University, and in partner programs with faculty from University of Chicago, INSEAD, Emory, Munich Business School, and the European Business School. John has also taught in dozens of executive education programs for leading companies, including: IBM, DOW Chemical, and Allianz. His research interests are in global brand leadership, marketing strategy, sports marketing, and marketing accountability. He received his M.B.A. from Columbia University and his B.A. from Stanford University.
Review :
This book is a go-to resource for marketers looking to better measure the effectiveness of their efforts. The depth of information and approaches it provides helps professionals go beyond the 'usual suspects' we use for metrics, and challenges us to explore new methods for determining how well we're performing. Even better, many of the techniques shift our view of measurement from being a passive reporting tool to using it to be a more forward-looking tool for change.
--Lisa Bodell, CEO, futurethink; Author, Why Simple Wins
There is a quote, attributed to Albert Einstein: "Not everything that can be counted counts, and not everything that counts can be counted." In this book of marketing metrics, John Davis provides a brilliant insight into the metrics that do count in marketing. Each metric is explained succinctly so that marketing managers can understand and apply them to their business in a practical way. In a world of disruptive technology and fast changing consumer preferences, knowing what should be measured and how it should be measured is critical. This book should be compulsory reading for all marketing managers who want to stay ahead of the competition.
--Professor Mark Farrell, Head, Graduate School of Business and Law, RMIT University, Australia
Creating sustainable value is crucial for today's companies, and marketing plays a central role in this effort. With so many tools available, from traditional to digital and social media, as well as sophisticated sales organizations and new distribution channels, measuring performance can get quite complicated. John Davis's book, Measuring Marketing, is the perfect solution, offering clear descriptions and examples of how to measure the value contributed by the various marketing investments. Measuring Marketing is an excellent resource that every marketer and CMO should use.
--Hari Nair, Group Chief Strategy & Innovation Officer, Sime Darby, Kuala Lumpur Malaysia
John has delivered a comprehensive, end-to-end view of how to measure and create value. His expertise and approach are increasingly critical for any business to remain competitive.
--Thomas McCabe, Chief Country Officer, USA, DBS Bank
John Davis is a recognized expert in the field of marketing science. Measuring Marketing combines advances in the academic analysis of quantifying marketing impact together with deep industry insights to ensure...application to today's marketing organisations and companies.
--Steve Leonard, CEO, SGInnovate, Singapore
One variation of a managerial maxim goes that you can't manage what you can't count. John Davis has provided a cartograph of just how to do this. This book sits as comfortably on the aisle of financial analysis books as it does on the aisle of marketing books.
--Pakpoom Vallisuta, Chairman of The Quant Group; Board member of The Board of Visitors, Fuqua School of Business, Duke University
