Marketing Metrics Chap 1

MARKETING METRICS
DR. DUNG PHUONG HOANG

FACULTY OF MARKETING
Chapter 1
Introduction to marketing metrics
Discussion
 What is the role of marketing objectives?

 What are criteria of marketing objectives?
 Examples of marketing objectives
 How to know that marketing objectives have been achieved or not? When should
we check that? Why?
Metric
A metric is a measuring system
that quantifies a trend, dynamic, or
characteristic
Marketing metrics are a
quantifiable way to track
performance and are an important
marketing measurement tool for
gauging a campaign’s
effectiveness.
The importance of metrics
“When you can measure what you are speaking about, and express it
in numbers, you know something about it; but when you cannot
measure it, when you cannot express it in numbers, your knowledge
is of a meager and unsatisfactory kind: it may be the beginning of
knowledge, but you have scarcely, in your thoughts, advanced to the
stage of science.”
––William Thomson, Lord Kelvin, Popular Lectures and Addresses
(1891–94)
WHY MEASURING THINGS IS SO IMPORTANT?

Discussion
How a marketing manager can make decision if all information he has is like:
- Competition is not too high
- Customers are not really loyalty
- Customers say our products’ quality is not really good
- Our market position is still good
- Sales of this month is not high
.....
Value of Information
Data Information Knowledge
MARKETING PROCESS
Discovery Strategy Implementation Measurement
Discussion
List all of marketing metrics that support the

marketing process?
3 Key Types of Marketing Metrics
• Marketing • Marketing • Marketing
Milestone Activity Metrics Outcome
Metrics • Speedometer for Metrics
• GPS for your your business • Stopwatch on
business development your Sales
strategy Activities
WHERE WE ARE? HOW FAST DO WE GET THERE? HAVE WE GET THERE YET?
MARKETING PROCESS
Discovery Strategy Implementation Measurement
The importance of marketing metrics
 Help brands determine whether campaigns are successful, and provide insights to
adjust future campaigns accordingly.
 Help marketers understand how their campaigns are driving towards their business
goals, and inform decisions for optimizing their campaigns and marketing channels.
 Serve as an early warning system if marketing campaigns aren’t performing as
expected, and can help with effective decision making to adjust campaigns in real
time.
 Are the primary way marketers can show the impact that marketing and advertising is
making for their company or organization
 Can inform annual budgets and headcount, making these insights essential beyond
ongoing measurement and campaign planning.
Content
 Chapter 1: Introduction to marketing metrics
 Chapter 2––Share of Hearts, Minds, and Markets: Customer perceptions, market
share, and competitive analysis.
 Chapter 3––Margins and Profits: Revenues, cost structures, and profitability.
 Chapter 4––Product and Portfolio Management: The metrics behind product
strategy, including measures of trial, growth, cannibalization, and brand equity.
 Chapter 5––Customer Profitability: The value of individual customers and
relationships.
 Chapter 6––Sales Force and Channel Management: Sales force organization,
performance, and compensation. Distribution coverage and logistics.
 Chapter 7––Pricing Strategy: Price sensitivity and optimization, with an eye
toward setting prices to maximize profits.
Content
 Chapter 8––Promotion: Temporary price promotions, coupons, rebates, and
trade allowances.
 Chapter 9––Advertising Media and Web Metrics: The central measures of advertising
coverage and effectiveness, including reach, frequency, rating points, and impressions.
Models for consumer response to advertising. Specialized metrics for Web-based campaigns.
 Chapter 10––Marketing and Finance: Financial evaluation of marketing programs.
 Chapter 11––The Marketing Metrics X-Ray: The use of metrics as leading indicators of
opportunities, challenges, and financial performance.
 Chapter 12—System of Metrics: Decomposing marketing metrics into component parts can
improve measurement accuracy, add managerial insight into problems, and assist marketing
model building.
FACTS
MORE THAN 100 FORMULAR!!!

How to remmember???
Text book
Assessment
ITEM ASSESSMENT TASK TOTAL MARKS
1 Team work 20%
Individual work 1 (Week 6 or 7 - Just before

2 10%
Tet holiday)
Individual work 2 (Week 14)
3 10%
3 “Attendance PLUS...” assessment 10%
Final Examination
4 50%
(Multiple choice, Closed-book)
Attendance = 5
Excercise Notebook = 5
Excercise Notebook:
+ Handwritting for all formulars (try to connect
them in a logical way) with purposes/meanings,
unit (i.e percent, absolute value,...), formular
+ Handwritting for all excercises (see in slides)
(preferably, BEFORE the class)
BONUS MARKS FOR VOLUNTEER (only
when you give right answers!!!)
The measurement process
Determine Evaluate the

what is to be measure
measured
Determine how Apply a rule of

it is to be measurement
measured
Step 1: Determine what is to be
measured - WHERE TO FIND?
• The researcher must identify the concepts relevant to the
problem.
• Concepts (or construct) are generalised ideas about a class of
objects, attributes, occurrences, or processes. They must be identified
before the measurement process begins.
• e.g., Therapy is a new brand of a company called Home Love.
The company wants to know whether more loyal customers of
the already established brand Home Love will more likely buy
the new brand Therapy.
• What is concept to be measured here? (Variables to be
measured)
Step 2: Determine how it is to be measured
• Let’s say that we want to measure “brand loyalty”

• We will need to find an operational definition of the concept to
measure it.
• An operational definition gives meaning to a concept by specifying

the activities or operations necessary to measure it.
Conceptual vs. operational definition
• In the operational definition, we measure the concept by
breaking it down into smaller components (including
activities and operations)
--> What are the measurable activities or operations of the

concept “brand loyalty”?
Conceptual vs. operational definition
Conceptual definition Operational definition
Brand loyalty The tendency of Brand loyalty could be measured by the

consumers to following formula:
continuously purchase
one brand’s products 𝑝𝑢𝑟𝑐ℎ𝑎𝑠𝑒 𝑡𝑖𝑚𝑒𝑠 𝑜𝑓 𝑎 𝑏𝑟𝑎𝑛𝑑
over another. 𝑝𝑢𝑟𝑐ℎ𝑎𝑠𝑒 𝑡𝑖𝑚𝑒𝑠 𝑜𝑓 𝑎 𝑝𝑟𝑜𝑑𝑢𝑐𝑡 𝑐𝑎𝑡𝑒𝑔𝑜𝑟𝑦
That is, the total number of times the

customer purchases the brand over the total
number of times the customer purchases the
product category within a specified period
What Are We Measuring?
 Must make concrete our abstract concept of marketing
term by providing an operational definition, a precise
specification in numerical terms of what exactly we
mean
Whats is
repurchase
frequency
Marketing Metrics: Marketing at the Core of
the Organization
Practice: Find marketing metrics for the
following concepts
 Email marketing:
 Digital marketing:
 Social media:
 Website:
 Content marketing:
 Video and streaming TV ads:
 Sales:
 Revenue:
 SEO:
 Quality:
 https://forms.gle/7GVSHBrVyDaP6BZB6

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MARKETING METRICS

DR. DUNG PHUONG HOANG

 What is the role of marketing objectives?

WHY MEASURING THINGS IS SO IMPORTANT?

List all of marketing metrics that support the

MORE THAN 100 FORMULAR!!!

ITEM ASSESSMENT TASK TOTAL MARKS

1 Team work 20%

Individual work 1 (Week 6 or 7 - Just before

3 “Attendance PLUS...” assessment 10%

Determine Evaluate the

Determine how Apply a rule of

• Let’s say that we want to measure “brand loyalty”

• An operational definition gives meaning to a concept by specifying

--> What are the measurable activities or operations of the

Conceptual definition Operational definition

Brand loyalty The tendency of Brand loyalty could be measured by the

That is, the total number of times the

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