Marketing Metrics
With the help of marketing metrics, the success of any marketing campaign, namely public relations, relations with media, sponsorship, exhibitions, reputation, brand awareness, etc. can be measured. Market share as sales metrics, awareness as customer readiness to buy metrics, customer satisfaction as customer metrics, weighted distribution as distribution metrics and gross rating point (GRP) as communication metrics will be examined below.
Description of the Metric
Market share is a key indicator of the company, which shows whether the company is able to influence the levels of supply and demand in the market, as well as the situation of the company in relation to its competitors. The higher the value of market share the company has, the more profits the company gets, and, thus, the more effective it is (Kotler and Armstrong, 2012).
Brand awareness is responsible for the ability of the target audience to know or remember the brand of the company at the time of the selection, or immediately prior to the purchase of goods. Brand awareness affects the competitiveness of the product and the possibility of long-term growth (Hollensen, 2014).
Customer satisfaction is the correspondence between his/her expectations and actual experience in the process of buying a product or service (Kotler and Armstrong, 2012).
Weighted Distribution shows the proportion of retail outlets in the total sales of the product category in the region, but it takes into account only those points, where the tested product is present (Hollensen, 2014).
Gross rating point is marketing indicator of the scale of advertising exposure. GRP shows how many times advertising message comes across to people in the eye for a period of an advertising campaign (Grewal, 2014).
Calculation of Metrics
Market share is the ratio of product or service sales of a particular company and sales of similar goods or services of competing companies operating in this market. To properly calculate the market share, it is necessary to consider certain values for a specific period of time, for example, for the quarter, a year or several years. Next step is to calculate the total income (revenue) of the company and to find the total sales in the market in question. Information on the total sales in the market can be found in a variety of market researches or trade associations. Finally, it is required to divide the total revenues of the analyzed company by total sales in the market to find the market share of this company (Kotler. and Armstrong, 2012).
Brand awareness is measured in % and means the proportion of the audience that is familiar with the company’s product and can identify the brand within a product category. High brand awareness of the company is achieved through the promotion of goods on the market (Hollensen, 2014).
There are several methods for assessing consumer satisfaction, namely observation, survey, and the newest and most progressive method is a mystery shopping (when a secret shopper under the guise of an ordinary customer makes a purchase or uses the services of the company). Determination of customer satisfaction by observing and survey is usually carried out on a 10-point scale. The organization of the survey should be noted that the questions should address key satisfaction criteria that are affected by the customer’s choice. There are formal methods specifically designed for the analysis of customer satisfaction as a Gap model, Likert scale and more. Customer satisfaction level is determined by counting and documenting results (Kotler and Armstrong, 2012).
Weighted distribution is measured as a percentage of total product sales by outlets, in which at least one product of the studied brand is fixed. The formula is the following: WD = (PSt1 + + PStn) * 100% / TPS, where WD – weighted distribution; PS – product sales; TPS – the total amount of product sales (annual, for the period); and t1, tn – outlets, where there is 1-n product (Hollensen, 2014).
Gross rating point is considered the method of summing ratings of the whole advertising campaign in all media. To calculate GRP of advertising campaign it is necessary to know all the rankings, scored the individual outputs of advertising messages. This rating is the percentage of the audience, who saw the essential event in relation to the whole audience that could see it. GRPs (%) = Number of Impressions ÷ Distinct population * 100% (Grewal, 2014).
Application of Metrics
Knowledge of the market share will provide IT Today’s management with an objective assessment of the market situation in IT industry, opportunities for company’s development, ability to determine its position in relation to its competitors, choose the new business segment, plan production volumes, create sales program in the different regions, etc. (Kotler. and Armstrong, 2012)
For IT Today the high level of brand awareness will provide a selection advantage over products having lower knowledge. The higher knowledge of the goods on the market is, the greater the likelihood that the consumer will remember IT Today brand, when making purchasing decisions (Hollensen, 2014).
Measurement of customer satisfaction with technological assistance will allow IT Today to identify the needs of consumers and the relative importance of these requests; understand how customers perceive company’s products and organization as a whole and whether the organization activity corresponds to their needs; identify those areas, in which improved performance will give the greatest increase in customer satisfaction; identify areas, in which the manufacturer staff inadequately set priorities for the consumer; set the goal of improving the products and services and monitoring the process of improvement; and increase profits by increasing customer loyalty and its conservation (Kotler. and Armstrong, 2012).
In case IT Today will have several outlets, weighted distribution will show the market share inherent to outlets trading this brand (Hollensen, 2014).
GRP will allow IT Today to understand how effectively the advertising campaign impacts its customers and what tools it is necessary to use to increase company’s brand awareness (Grewal, 2014).
References
Grewal, D. (2014). M: Marketing. New York: McGraw-Hill/Irwin.
Hollensen, S. (2014). Marketing Management: A Relationship Approach, 3rd ed. New York: Pearson.
Kotler, Ph. and Armstrong, G. (2012). Principles of Marketing, 14th edition, Pearson Prentice Hall.
