Marketing Short Notes 2023/24 PDF

2023/24 Marketing Short Notes Adam Zeid (190236) University of Business and Economy in Wroclaw  Summary L1 Basic Terms and Concepts Brand – name, term, sign, symbol associated with product or compa...

2023/24 Marketing Short Notes Adam Zeid (190236) University of Business and Economy in Wroclaw  Summary L1 Basic Terms and Concepts Brand – name, term, sign, symbol associated with product or company. Brand value – monetary worth of brand. Marketing is activity, management process, science, and art. Core marketing concepts ➔ Needs, wants, and demands. ➔ Marketing offers (product, services, and experiences) ➔ Value and satisfaction ➔ Exchange transactions, and relationships ➔ Markets Human needs ▪ Physical ▪ Social ▪ Individual Wants – special type of need shaped by culture and individual personality. Demands – when want is backed up by the ability to pay it becomes demand. ▪ Needs & Wants + Ability to buy = Demands Value proposition – set of benefits sellers promise to satisfy needs of consumers. Marketing offers: ▪ Physical products ▪ Services Customer value ▪ Difference between the customer gains from owning the product and the actual cost of obtaining it. Summary L2 Basic Term and Concepts Exchange – act of obtaining object by offering something in return. Exchange conditions ▪ Two parties. ▪ Something in value. ▪ Want. ▪ Free to accepts or reject. ▪ Able to communicate and deliver. Transaction – a trade between two parties involves at least two things of value. Market – set of actual and potential buyers. Page 1 of 20  A simple marketing system Industry (sellers) → Communication, Products/services → Market (buyers) Money, Infromation Main actors and forces in a modern marketing system → Company → Suppliers → Marketing Intermediaries → End user market → Competitors → Customer satisfaction – extent to which a product’s perceived performance matches a buyer’s expectations. Cognitive dissonance – is when ideas or beliefs conflict. (ex. Electric cars) Marketing management – the art and science of choosing target markets a build profitable relationship with them. Demand management – finds ways to deal with different demand states (no demand, adequate demand, irregular demand, too much demand). Demarketing – to reduce demand temporarily or permanently (ex. Cigarettes). Building profitable customer relationships – finding new customers or retaining profitable customers and building relationships with them. Marketing management philosophies: ▪ Production ▪ Product ▪ Selling ▪ Marketing ▪ Societal marketing Production concept – consumers will favour products that are available and highly affordable. Product concept – consumers will favour products that offer the most quality, performance, and features. Marketing myopia – is the failure & narrow-minded approach of marketing management (ex. Nokia, Kodak). Near-sightedness. Selling concept – idea that consumers will not buy enough products unless sellers undertake a large-scale selling and promotion effort. Marketing concept – achieving goals depends on determining needs and wants of target markets. Social marketing – sellers should determine the needs, wants and interests of target markets. Marketing environment – companies have to be alert and responsive to their environment. Page 2 of 20  Microenvironment ▪ Suppliers ▪ Marketing intermediaries ▪ Resellers ▪ Physical distribution firms ▪ Marketing services agencies ▪ Financial intermediaries Summary L3 Market analysis, planning, implementation, and control AND Segmentation, targeting & positioning: segmenting markets, target segment, positioning maps & strategy, communication & delivering the chosen position. Types of plans: ▪ Annual plan ▪ Long-range plan ▪ Strategic plan The strategic plan ▪ The mission ▪ The vision ▪ The strategic objectives ▪ The strategic audit ▪ SWOT analysis ▪ Objectives and strategies Mission statement – statement of the organization’s purpose; what it wants to accomplish in the wider environment. It should be: ▪ Realistic ▪ Specific ▪ Basen on distinctive competencies. ▪ Motivating. Vision – is a contagious dream, a widely communicated statement or slogan that captures the needs of the time. It should: ▪ Usable for 10 – 20 years. ▪ It should not change in response to each new turn in the environment. Page 3 of 20  Strategic audit ▪ External audit – examination of the markets, competitors, business, and economic environment. ▪ Internal audit – An evaluation of the firm’s entire value chain. SWOT analysis – Distillation of the findings of the internal and external audit. ▪ Strengths ▪ Weaknesses ▪ Opportunities ▪ Threats The business portfolio – The collection of business and products that make up the company. (BCG matrix) Marketing Process Overview Mission → Situation Analysis → Marketing Strategy → Marketing Mix → Implementation and Control Marketing 1.0 – product orientation Marketing 2.0 – consumer orientation Marketing 3.0 – values and relations Marketing 4.0 – e-marketing and relations Marketing mixes ▪ 4P – Product, Place, Promotion, Price ▪ 4C – Customer, Convenience, Communication, Costs ▪ 4E – Experience, Everywhere, Engagement, Exchange ▪ 7P – Product, Place, Promotion, Price, People, Physical evidence, Process ▪ 7C – Customer, Convenience, Communication, Costs, Competence, Comfort, Coordination Market segmentation – Dividing a market into distinct groups of buyers with different needs, characteristics, or behaviours. Target marketing – Directing a company’s effort towards serving one or more groups of customers sharing common needs or characteristics. Market targeting – The process of evaluating each market segment’s attractiveness and selecting one or more segments to enter. Market positioning – Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers. Formulating competitive positioning for a product and detailed marketing mix. Marketing segmentation levels ▪ No segmentation (mass marketing) (Coca-Cola) ▪ Complete segmentation (micromarketing) (MTV, automotive) ▪ Something in between (segment marketing or niche marketing) (Vegan baking) Other types of marketing – Micromarketing, Local marketing, Individual marketing Types of segmentation – Geographic, Demographic, Psychographic, Behavioural Developing market segments Qualitative research → Quantitative research → Analysis → Validation → Profiling Page 4 of 20  Requirements for effective segmentation ▪ Measurability ▪ Accessibility ▪ Sustainability ▪ Actionability Unique selling proposition (USP) – Aggressively promoting the product to its target market. Emotional selling proposition (ESP) – A nonfunctional attribute that has unique associations for consumers. Positioning errors ▪ Under positioning – failure to position a company. ▪ Over positioning – too narrow picture of the company. ▪ Confused positioning – leaves consumers with a confused image of the company. ▪ Implausible positioning – positioning strategy stretches the perception of the buyers too far. Summary L4 Consumer behaviour: cultural, social, personal & psychological factors, dissonance-reducing, habitual & variety-seeking buying behaviour, buyer decision process. Questions about consumers – Who? How? When? Where? Why? ▪ How do consumers respond to various marketing stimuli that company might use? Stimuli (Marketing mix, External influences) → Transformer (Buyer’s Mind – Internal influences, external influences) → Responses (Purchase, No purchase) Characteristics affecting consumer behaviour. ▪ Cultural ▪ Social ▪ Personal ▪ Psychological Culture – set of basic values, perceptions, wants, and behaviours learned by member of society. Cross-cultural marketing fails – Translation, Sounds like, Celebrity endorsement, Appropriateness. Page 5 of 20  Social factors – groups ▪ Membership groups ▪ Reference groups ▪ Aspirational groups Social factors ▪ Opinion leaders – People who have exert influence on others. ▪ Family ▪ Role and status – (ex. Celebrities, Politicians etc.) Consumer’s buying roles ▪ Initiator ▪ Influencer ▪ Decider ▪ Buyer ▪ User ▪ Gatekeeper Personal factors ▪ Age and life-cycle stage (Young, Middle-aged, Older) ▪ Dimensions (Activities, Interests, Opinions, Demographics) Psychological factors ▪ Motivation ▪ Perception ▪ Learning ▪ Beliefs ▪ Attitudes Perception – individual process of gathering information and creating picture of the world. Advertising or marketing clutter – a very large volume of advertising that the average consumer is exposed to. Selective distortion – The tendency of people to adapt information to personal meanings. Selective retention – Tendency to retain only part of the information, usually ones that supports their attitudes and beliefs. Learning – Brand can educate its consumers. Belief – A descriptive though that a person holds about something. Attitude – Person’s consistently favourable or unfavourable evaluations, feelings, and tendencies towards an object or idea. The buyer decision process Need recognition → Information search → Evaluation of alternatives → Purchase decisions → Post purchase behaviour. Cognitive dissonance – buyer discomfort caused by post purchase effect. (ex. Ross with condoms in “friends” series, your father after having you, your boyfriend after buying old broken BMW, etc.) Page 6 of 20  Summary L5 Customer-driven marketing strategy & marketing mix – part 1: [Product] Products, services & branding, product & services classification & levels. Product mix. ▪ Marketing mixes - revision ▪ 4P – Product, Place, Promotion, Price ▪ 4C – Customer, Convenience, Communication, Costs ▪ 4E – Experience, Everywhere, Engagement, Exchange ▪ 7P – Product, Place, Promotion, Price, People, Physical evidence, Process ▪ 7C – Customer, Cost, Convenience, Communication, Competence, Comfort, Coordination ▪ Product – anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need. ▪ Product examples – Physical objects, services, persons, places, organizations, ideas. ▪ Services – Activities, benefits, or satisfaction that are offered for sale. ▪ Service examples – Moving & storage, transportation, home service, office space, health & beauty, food & dinning, care services, delivery, events, travel. ▪ Levels of product ▪ Core product - The problem-solving services or core benefits that consumers are really buying when obtain a product. (Core Benefit) ▪ Actual product – A product’s parts, quality level, features, design, brand name, packaging and other attributes that combine to deliver core products benefits. (Features, Design, Packaging, Quality level, Brand name) ▪ Augmented product – Additional consumer services and benefits built around the core and actual products. (After-sale service, Warranty, Installation, Delivery & credit) Product classification ▪ Durability and tangibility ❖ Non-durable products ❖ Durable products ▪ Consumer products and industrial products ❖ Consumer product ❖ Industrial product Types of consumer products ▪ Convenience products (ex. Food, Drinks, Cleaning appliances, etc.) ▪ Shopping product (ex. Clothes) ▪ Speciality product (ex. Cars) ▪ Unsought product (ex. Fire extinguisher) Types of industrial goods ▪ Materials and parts (ex. Raw materials, Manufactured materials, Parts, etc.) ▪ Capital items (ex. Installations, Accessory Equipment, etc.) ▪ Supplies and services (ex. Supplies, Business Services, etc.) Page 7 of 20  Organizations – create, maintain, or change the attitude of and behaviour of target consumers towards an organization. Persons – person marketing consist of activities undertaken to create, maintain, or change attitudes or behaviours towards particular people. Places – involves activities undertaken to create, maintain or change attitudes or behaviour towards particular places to attract tourists, new residents, conventions, and company offices and factories. Product decisions ▪ Individual product decisions ▪ Product line decisions ▪ Product mix decisions Individual product decisions ▪ Product attributes ▪ Packaging ▪ Labelling ▪ Product-support services Product attributes – Product quality, Features, Style, Design Generic product – Unbranded, plainly packaged, less expensive version of common products. Branding ▪ Buyers’ perspective – Brand names tell buyers something about product quality. Buyers who always buy the same brand know that they will get the same quality each time they buy. ▪ Suppliers’ perspective – The brand name makes it easier for the supplier to process orders and track down problems. ▪ Consumers’ and society perspective – Those who favour branding that it leads to higher and more consistent product quality. Packaging – The activities of designing and producing the container or wrapper for a product. Labelling Functions – Identifies, Grade, Describe, Promote. Product line - A group of products that are closely related because they function in a similar manner, are sold to the same customer groups. The new product development process ▪ Idea generation → Idea screening → Concept development and Testing → Marketing strategy development → Business analysis → Product development → Test marketing → Commercialisation Page 8 of 20  Summary L6 Customer-driven marketing strategy & marketing mix – part 2: [PRICE] Pricing products: pricing environment, internal & external factors, cost, value & competition-based pricing, new product pricing strategies, product mix pricing strategies, price adjustment strategies, price changes. Price is the only element in the marketing mix that produces revenue. Price – the amount of money charged for a product or service. Factors affecting price decisions. ▪ Internal factors: Marketing objectives, Marketing mix strategy, Costs, Organizational considerations. ▪ External factors: Nature of the market and demand, Competition, Other environmental factors (economy, resellers, government, social concerns) Marketing pricing objectives ▪ Survival – Set for short-term if company is troubled by too much capacity, heavy competition or changing in consumer wants. ▪ Current profit maximization - Estimate what demand and costs will be at different prices and choose the price that will produce the maximum current profit, cash flow or return on investment. ▪ Market-share maximization - To become the market-share leader, these firms set prices as low as possible. ▪ Product-quality leadership - Normally calls for changing a high price to cover such quality and the high cost of R&D. Internal factors affecting pricing decisions – Marketing-mix strategy: ▪ Target costing – deciding a target cost for a new product, in time of designing the product. ▪ Fixed costs – do not vary with the production or sales level (ex. Rent, heat, executives’ salaries, etc.) ▪ Variable costs – vary directly with the level of production. Tend to be the same for each unit produced, total varying with the number of units produced. ▪ Total costs – The sum of fixed and variable costs. Internal factors affecting pricing decisions – Organisational considerations. ▪ In small companies, prices are usually set by the top management. ▪ In big companies, prices are set by divisional and product line managers. External factors affecting pricing decisions – market. ▪ Pure competition ▪ Monopolistic competition ▪ Oligopolistic competition ▪ Pure monopoly. Page 9 of 20  Consumer perception of price and value ▪ Consumer decides if price is right. ▪ Companies must consider customer perception. ▪ Pricing decisions must be buyer oriented. ▪ If customers perceive that the price is greater than the product’s value, they will not buy the product. And vice versa. Other external factors – Economic conditions, Government, Social concerns, Price elasticity. General pricing approaches ▪ Cost-based pricing. (Product → Cost → Price → Value → Customers) ▪ Value-based pricing. (Customers → Value → Pirce → Cost → Product) ▪ Competition-based pricing. Marketing-skimming pricing – Setting a high price to skim maximum revenues. Marketing-penetration pricing – Setting a low price for new product to attract large number of buyers and market share. Discount and allowance pricing ▪ Cash discount ▪ Quantity discount ▪ Functional discount (trade discount) ▪ Seasonal discount ▪ Trade-in allowance ▪ Promotional allowance Segmented pricing – different pricing depending on customers, products, and locations. Psychological pricing – considers the psychology of prices not simply the economies. Promotional pricing – setting price below list price or even below cost to increase short-run sales. Summary L7 Customer-driven marketing strategy & marketing mix - part 2: [PLACE] marketing channels: how channels add value, channel levels & behaviour, multichannel distribution, channel objectives. Selecting, managing, motivating, and evaluating channel members. Logistic management. Place is one of the four elements of marketing mix. Distribution is the process of making product or service available for the customer or user who needs it. Consumer perspective – product available, convenience, fast delivery, quality of after-sale customer service. Page 10 of 20  Enterprise perspective – providing access to the product to as many customers as possible, assuring high level of customer service, cost-effective optimalization, distinction among competitors. Supply chain Raw materials → Supplier → Manufacturing → Distribution → Retail → Customer Upstream: (Raw materials → Suppliers → Manufacture) Downstream: (Manufacture → Distribution → Consumer) Marketing channel (distribution channel) – a set of interdependent organisations involved in the process of making product or service. Elements of distribution channel ▪ Producer ▪ Intermediaries – firms that help producers find customers and make sales. ▪ Wholesale – mainly sellers of goods to the resale or business use. ▪ Broker - wholesaler who does not take title to goods and whose function is to bring buyers and sellers together and assist in negotiations. ▪ Agent - wholesaler who represents buyers and sellers on a relatively permanent basis, performs only a few functions, and does not take title to goods. ▪ Retailers – businesses whose sales comes primarily from retailing. ▪ Customer Customer marketing channels ▪ Channel 1: Manufacturer → Consumer ▪ Channel 2: Manufacturer → Retailer → Consumer ▪ Channel 3: Manufacturer → Wholesaler → Retailer → Consumer ▪ Channel 4: Manufacturer → Wholesaler → Jobber → Retailer → Consumer Industrial marketing channels ▪ Channel 1: Manufacturer → Industrial Consumer ▪ Channel 2: Manufacturer → Industrial Distributor → Industrial Consumer ▪ Channel 3: Manufacturer → Manufacturers’ representative → Industrial Distributor → Industrial Consumer Common goal – marketing channel of firms that have banded together and are dependent on each other to achieve a common goal. Conventional marketing channel Manufacturer → Wholesaler → Retailer → Consumer Vertical marketing system Manufacturer Wholesaler → Consumer Retailer Franchise (VMS) – a contractual association between a manufacturer wholesaler or service organisation and independent businesspeople who buy the right to own and operate one or more units in the franchise system. Type of retailers ▪ Department store ▪ Convenience store Page 11 of 20  ▪ Superstore ▪ Category killer ▪ Hypermarket ▪ Discount store ▪ Off-price retailer ▪ Factory outlet ▪ Warehouse club Intensive distribution – stocking the product in as many outlets as possible. Exclusive distribution – giving a limited number of dealers the exclusive right to distribute the company’s products in their territories. Selective distribution – the use of more then one, but less than all the intermediaries that are willing to carry the company’s product. Transportation – road, rail, water, pipeline, air, internet Summary L8 Customer-driven marketing strategy & marketing mix - part 4: [PROMOTION] communications strategy: communications environment, integrated marketing communications, target audience, communication objective, message design, media selection & message source, communication & promotion mix Advertising. Noise – everything that interrupts a massage while it’s on the way from the sender to the receiver. Types of noise: Physical, Semantic, Physiological, Psychological, Cultural, Technical Page 12 of 20  Promotion mix ▪ Advertising ▪ Personal selling ▪ Public relations ▪ Direct marketing ▪ Sponsoring Integrated marketing communication – company integrates and coordinates its many communications channels to deliver a clear, consistent, and compelling massage about the organisation and its products. Model AIDA – Attention, Interest, Desire, Action Model DAGMAR – Defining Advertising Goals for Measured Advertising Results Message: Structure, Content, Format, Channel, Source Message format: Headline, Copy, Illustration, Novelty, Contrast, Eye-catching and headlines, Distinctive formats, Message size and position, Shape, and movement. Components of persuasion  The recipients of a message Persuasion  The message itself  The source of that message 3 pillars of persuasive message ▪ Ethos – Credibility ▪ Logos – Reason/Logic ▪ Pathos – Emotion Choosing media ▪ Personal communication channels ▪ World-of-mouth influence ▪ Buzz marketing ▪ Non-personal communication channels ▪ Media Advertising ▪ Can reach masses. ▪ Enables to repeat a message many times. ▪ Buyer can receive and compare massages from various companies. ▪ Is very expressive. ▪ Can build up long-term image of products. ▪ Can trigger quick sale. ▪ Is impersonal. ▪ Is only able to carry on a one-wat communication. ▪ Require a large budget. Modern types of advertising: Ambush marketing, Product marketing, Ambient marketing, Pankversing marketing, Schockversting marketing, Guerilla marketing. Page 13 of 20  Summary L9 Customer-driven marketing strategy & marketing mix – part4: [PROMOTION] Public relations tools & objectives. Promotion mix ▪ Advertising ▪ Personal selling ▪ Public relations ▪ Direct marketing ▪ Sponsoring Stakeholders – anybody or institution that could be affected by the organization’s business. Internal Stakeholders – Employees, Managers, Owners External Stakeholders – Suppliers, Society, Government, Creditors, Shareholders, Customers Stakeholder mapping ▪ High influence and low stake: Handle with care ▪ High influence and high stake: Top priority ▪ Low influence and low stake: Low priority ▪ Low influence and high stake: Need help to participate WWI was the first test for PR profession. Bernays theories ▪ Crystallizing Public Opinion → Established the progression’s theoretical foundations or PR. ▪ Theories of Sigimund Freud. ▪ How to move people to do what you want them to do? Spin ▪ Selective assembly of fact and the shaping of nuance to support a particular view of a story. ▪ Considered to be form of propaganda. ▪ To spin something = to communicate it in a way that changes the way people are likely to perceive it. ▪ Spin is intentionally misleading and can, in fact, give the opposite impression to what would naturally occur. ▪ Outright lies cannot be considered spin. However, inconvenient but relevant truths are often omitted in the process and less relevant but true details emphasized. PR today ▪ Media relations, internal relations, investor relations, community relations, public affairs, lobbying, social media, others. ▪ PR combine with advertising, marketing into IMC = integrated marketing communication. Page 14 of 20  PR models ▪ Press agent/publicity ▪ Public information model ▪ Two-way asymmetrical model ▪ Two-way symmetrical model The RACE formula – Research, Action, Communication, Evolution Reactive PR – must react or respond to a public relations issue or problem. Proactive PR – allows organisations to plan and execute public relations activities on their own timeline. 10 Foundational Principles of PR 1. Organizations exist only by public consent. 2. Mutually beneficial relationships require two-way communication. 3. It’s not our job to put a clean shirt on a dirty body. 4. Act, then communicate. 5. Clarity is more important than cleverness. 6. Activity does not equal results. 7. Never refuse an opportunity to tell your side of the story. 8. Manage expectations. 9. Practice public relations proactively, whenever possible. 10. Be a bridge, not a barrier. Main tools of media relations – PR text, Meeting, Press conference, Media interview, Press pack, Social media, Website. Invested news pyramid The Lead The most important information about an event Who? What? Where? When? Why? How? The Body The crucial information expanding the topic Argument, Controversy, Story, Evidence Background details The Tail Extra information Interesting, related Items. Journalist Assessment Most common PR texts – News release, Pitch letter, Statement, Social media posts, Letters and other formal correspondence, Speech, Website info, Blog posts, PowerPoint presentations, Brochures, Infographic, and fact sheets. Page 15 of 20  Spokesperson – someone engaged or elected to speak on behalf of others. Crisis ▪ Predictable - the background is possible to be determined. It is easier to control. ▪ Unpredictable – is a surprise for the organization. Often caused by external factors. Difficult to control. PR in crisis management – managing public opinion is part of effective crisis management. PR should strive to change the negative attitudes and opinions of the public. Summary L10 Promotion mix ▪ Advertising ▪ Personal selling ▪ Public relations ▪ Direct marketing ▪ Sponsoring Personal selling – a face to face selling technique by which salesperson uses interpersonal skills to persuade a customer to buy product. Direct marketing – a form of promotion that specifically targets a person or company to generate new business. Types of direct marketing – Text massages, Emails, Phone calls, Direct mail, Online ads, Flyers, Kiosks, Door-to-door, Coupons. Retargeting – a strategy of serving advertisements to customer on external website based on their previous browsing history on the firm’s website. Page 16 of 20  Sponsorship – Popular marketing technique, refers to the financial or in-kind support of an event, a sports team, a charity organisation, etc. with the objective of attaining certain business objectives. Summary L11 Service marketing. Internal marketing. Services are nowadays experiencing a phenomenal growth in economy. High increase in demand for consumer and industrial services. Marketing offers ▪ Physical products ▪ Services – activities or benefits offered for sale that are essentially intangible and do not result in the ownership of anything. The tangible-intangible continuum for goods and services Sectors – government (healthcare, police, etc.), private non-profit (museum, church, etc.), business organizations (airlines, banks, consulting, etc.) Service characteristics (important) ▪ Intangibility – they cannot be seen, tasted, felt, heard, or smelt before they are bought. ▪ Inseparability – they are produced and consumed at the same time and cannot be separated from their providers, whether the providers are people or machines. ▪ Variability – their quality may vary greatly depending on who provides them and when, where, and how. ▪ Perishability – they cannot be stored for later sale or use. ▪ Lack of ownership – service consumer often has access to the service for a limited time. Service marketing triangle Page 17 of 20  Challenges – differentiation, service quality, productivity Customer service – the direct one-on-one interaction between a consumer making a purchase and a representative of the company that is selling it. Customer service elements – Presentation, Transaction, Post transaction. Relationship marketing – from of marketing that emphasizes customer retention and satisfaction rather than sales transactions. Customer relationship management (CRM) – process in which a business administers its interaction with customers. Relationship Marketing Success Factors ▪ Resource ▪ Competence ▪ Internal Marketing ▪ Relational ▪ Information Technology ▪ Public Policy ▪ Historical ▪ Marketing Offering Customer experience management (CXM) – discipline of understanding customers and deploying strategic plans that enable cross functional efforts. Service design process and tools ▪ Vision ▪ Personas ▪ Location Plan ▪ Journy Map ▪ Blueprint Touchpoint – occasion when a business or an organization is in contact with its customers. Page 18 of 20  Summary L12 Marketing Control. Marketing Productivity. Goal Setting Performance Performance Corrective Measurement Diagnosis Action What do we What is Why is it What should want to happening? happening? we do about it? achieve? Contextualise Metrics – past, present, future. Operating control - Checking ongoing performance against annual plans and taking corrective action. Strategic control - Checking whether the company’s basic strategy matches its opportunities and strengths. Challenges to the measurement of marketing productivity ▪ Marketing activities are related to long-term effects. ▪ The separation of individual marketing activities from other actions. ▪ The use of purely financial methods has proven inadequate for justifying marketing investments: non-financial metrics are also needed. Factors Affecting Marketing Productivity – Time, Business model, Type and maturity, Market conditions. Marketing mix modelling (MMM) - statistical analysis such as multivariate regression on sales and marketing time series data to estimate the impact of various marketing tactics. Marketing Performance Metrics Market Costumer Competitiveness Marketing Digital Metrics Metrics Metrics Profitability Media Page 19 of 20  Purchase Action Ratio (PAR) – measures how good companies “convert” people who are aware of them into purchase action. Brank Advocacy (BAR) – measures how good companies “convert” people who are aware of the brand into loyal advocates. Online Productivity Metrics – Input, Output, Cost, Outcome. Input – Content, Backlinks, Marketing campaigns, Previews, Traffic Quality – Rankings, Engagement, Conversion rate, LTV Cost – CAC (Consumer Acquisition Cost), K-Factor, Headcount, Tooling Output – Revenue, Leads, Social shares, Share of voice, ROAS Email Marketing Metrics – Open rate, Click-through rate (CTR), Conversion rate, Bounce rate, Number of unsubscribes, Spam complaints, Forwarding rate Evaluation of PR (measurement) – Production, Awareness, Attitude change, Behaviour change ROI in PR – Ad Value Equivalency (AVE), Media Placements, Mentions, Media Impressions and Web Traffic, Share of Voice, Social Media Metrics, Viral Impact, Generated Leads Barcelona Principles – AVE is misleading and unethical. Social Media Metrics – Engagement, Community growth, Sentiment Email Social Leading page with form Offer given & lead generated Blog Leads Enter Funnel Brand metrics – Brand awareness, Brand attributes and associations, Perceived quality, Brand loyalty, Net promoter score (NPS), Brand preferences, Brand usage. Aim of performing metrics – Updating the results continuously, Providing actionable recommendations, Evaluating the results’ accuracy & reliability. Page 20 of 20