Explain the advantage of using marketing performance metrics, and name and describe the four classes of marketing performance metrics. Give two examples of metrics used in each type of marketing performance metric

Question

What will be an ideal response?

Answer 1

Marketing performance metrics allow marketing managers to understand, track, and manage the market-based performance of a marketing strategy and provide a powerful complement to conventional measures of financial performance. The three classes of marketing performance metrics are:
(1 ) Market Metrics: These metrics gauge external market conditions and the attractiveness of markets. Market performance metrics include market growth rate, market share, market attractiveness, industry attractiveness and market demand to potential.
(2 ) Competitiveness Metrics: These external metrics track the competitiveness of a business' products. Competitive performance metrics include a business' performance relative to competition with respect to price, product quality, service quality, brand and cost.
(3 ) Customer Metrics: These external metrics track customer performance. Customer performance metrics include measures of customer satisfaction, customer retention, customer loyalty, customer awareness and customer value.
(4 ) Marketing Profitability Metrics: It measures the profit impact of an investment in marketing and sales expenses. They include net marketing contribution and marketing return on sales.