5 metrics used for

Markets

1. Market Share (Unit, Revenue)

2. Relative Market Share

3. Penetration

4. Segment Profitability

5. Market Share Index

Market Share

(Revenue)

Company Sales Revenue

Total Market Revenue

Market Share

(Unit)

Company Unit Sales

Total Market Unit Sales

Company's Market Share

Leading Competitor's Market Share

Customers Who Have Purchased Product

Total Population

Customers Who Have Purchased Brand

Total Population

Brand Penetration (%)

Market Penetration (%)

Segment Profitability

(Net Marketing Contribution)

You need to assess market competitiveness

Which metric?

You need to assess succeess of a brand relative to the industry's leading competitor

Which metric?

You need to measure the popularity of a product in a given target market

Which metric?

You need to measure popularity of a brand in a given target market

Which metric?

You need know how a specific brand is preforming out of customers who purchase the product in a given population

Which metric?

You need to know if a specific market will be profitable

Which metric?

You need to know what factors are causing poor penetration

Which metric?

6 metrics used for

Customers

1. Customer Count

2.Recency

3. Retention Rate and Churn Rate

4. Share of Wallet

5.Customer Profitability

6. Customer Lifetime Value

# of Customers

Over a Specified Period of Time

# of Active Customers at End

# of Active Customers at Beginning

# of Customers a Business Loses

# of Active Customers

Company's Sales to Customer in Period

Sum of Customer's Total Spending in Period

Revenues from Customer in Period -

Cost to acquire and support Customer in Period

Customer Lifetime Value

(CLTV)

[(Avg $ Spent on Purchase - Avg Cost to Service)x (# of Purchases Per Year x # of Expected Years) - New Customer Acquisition Costs + (New Customer Acquisition Costs x # of Referrals)] x Customer Adjustment Factor

[(M-C)(PY)- A +(AN)]F

- Hierarchy of Effects

-Knowledge

-Beliefs

-Intentions

-Purchase Habits

-Loyalty

-Likeability

-Willingness to Recommend

-Customer Satisfaction

-Willingness to Search

You need to adjust your marketing mix appropriately

Which metric?

You need to know how well your firm attracts and retains customers based on their purchase habits

Which metric?

You need to know how well your company retains customers over a given period of time

Which metric?

You need to know how rapidly your company loses customers over a given time period

Which metric?

You need to know the market share for an individual customer

Which metric?

You need to know assess the monetary value of an individual customer

Which metric?

You need to know how much monetary value an individual customer provides your company in the long run

Which metric?

7 Metrics for

Marketing Mix

1.Reach, Frequency and Gross Rating Points

2.Recall and Recognition

3. Response Rate

4.Conversion Rate

5. Average Acquisition and Retention Costs

6. Heavy Usage Index

7. Margins

% of Individuals Exposed

Total Population

*No Formula

-Aided Recall: Test using cues

-Top of the Mind Recall: First recall

-Dominance Recall: Only 1 recall

*No Formula

-Show brand name, product or ad and ask customers if they recognize the Brand

# of People Who Respond to Offer

# of People Recieved Offer

# of People Who Respond & Buy

# of People Who Respond

Acquisition Spending

# of Customers Acquired

Retention Spending

# of Customers Retained

Average Total Purchases By Customer

Average Total Purchases By All Customers

Unit Margin

($)

Selling Price Per Unit

-

Cost Per Unit

Unit Margin

(#)

Unit Margin ($)

Selling Price Per Unit

You need to know how well your marketing media plan is working in order to make it more effective

Which metric?

You need to measure how well your brand is remembered

Which metric?

You need to know how the market responds to a specific offer

Which metric?

You need to know how a specific offer actually affected sales

Which metric?

You need to know if it is more expensive to attain or retain a customer

Which metric?

Average Acquisition Costs

and Average Retention Cost

You need to know which customers to pay more attention to

Which metric?

You need to know how much an individual sale is worth to guide prices and promotions

Which metric?

5 Metrics For

Marketing and Finance

1. Gross and Operating Profit

2. Return on Sales

3. Marketing Cost Per Unit

4. Return on Marketing Investment

5.Value to Volume Ration

Sales Revenue

-

Cost of Goods SOld

Sales Revenue

-

Cost of Goods Sold

-

Overhead Costs

Net Profitability Before Taxes

Sales Revenue

Total Marketing Expenses in Period

Total Units Sold in Period

(Incremental Revenue Attributed to Marketing x Contribution% - Marketing Spending)

Marketing Spending

[(Y2-Y0)x Contribution% - X2]/X2

Est % Share of Total Market Gross Profits

% Share of Market Total Dollar Volume

You need to measure profitibility free of overhead costs

Which metric?

You need to measure profitability considering marketing costs

Which metric?

You need to know how efficiently your company's operations and investments aid sales

Which metric?

You need to know how costly your marketing spending is

Which metric?

You need to know how effective your marketing spending is

Which metric?

You need to know how effective your marketing efforts are in comparison with competition

Which metric?

Concept

Construct Definition

Operational Definition

Variable

-Associated characteristics

-Invented to represent abstract concept

-Specific measurement

-Synonymn for construct being studied

1. Dichotomous: 2 categories

2. Discrete: Mutually exclusive categories measured as whole units

3.Continuous: Interval of real numbers in a given range

4. Independent: Manipulated by researcher

5. Dependent: Manipulated by independent

Proposition: Statement about phenomena T/F

Hypothesis:Formulated for empirical testing

Theory:Concepts + Definitions + Propositions that explain or predict phenomena

Model:Graphical representation

1. Observe problem

2.Define problem

3. Propose hypothesis

4. Predict outcomes

5. Formulate rival hypothesis

6. Device and conduct tests

7. Test data

8. Draw conclusions

No relationship

H0

Relationship

HA

1. State null and alternate hypotheses

2. Choose appopriate variables

3. Develop decision rule with p-value level of significance

4. Calculate value of test statistics with SPSS

5. Conclusion

1. General

2. Relationship

3. Dependent Relationship

1. Descriptive

2. Relational

3. Causal

Level of

p-value > 0.05 = Null

p-value ≤ 0.05 = Not Null (Correct)

1. Mathematical

2. Statistical < 0.05

3. Managerial 0.00