Marketing evaluation and it’s essential components


It is a well-known fact that a company has to satisfy demands of its valuable customers to run a profitable business. In order to do that, a company has to keep improving marketing strategies, quality of products and uniqueness of the products according to target segments. Marketing experts of the company also need to consider some other factors like behaviour of consumers, their competitors, their own strength and weaknesses, geographical advantages and disadvantages etc. Now the question is how to do that? For every question there is an answer. Marketing evaluation is the only answer to that question.

Marketing evaluation is the technique which is used to assess success or failure of any marketing policy in order to achive it’s ultimate goal (Mooradian et al., 2013). Understanding of marketing matrics is very essential to carry out accurate marketing evaluation of performance of any company (Rancati and Gordini, 2014). Marketing matrics include several indiactors:

Key performance indicator:
It evaluates success of any marketing activity or of an organization. KPIs need to be choosen according to the goal of an organization (Parmenter, 2015). For example, KPIs used for departments of finance and sales will vary from each other. Management framwork like balanced scorecard is commonly used framework to choose appropriate KPIs. Organizations target key performance indicators to add more value to their business (MESA metrics research study, 2012). Key performance indicators can be sub categorized in quantitative indicators, qualitative indicators, input indicators, output indicators and financial indicators etc. Number of new customers, status of existing customers, turnover and average time of delivery are some examples of key performance indicators.

Return on investment:
Return on investment (ROI) is a performance measure that evaluates the efficiency of investment. High ROI results in high profit and vice versa (Murdoch et al., 2007). ROI can provide a close look of profitability of any investment by relating it to other related matrics. In a survey of 200 senior marketing managers, 77 percent found “return on investment” metric very usefull (Farris et al., 2010). ROI can also be used to measure extra-financial values like social return of investment.

Accountable marketing:
Similar to manufacturing and sales, accountable marketing is also based on a set of valid outcome performance indicators and input costs. In order for indicators to be considered valid for accountability they must qualify certain criteria. For example, they need to measure marketing outcome from a consumers’ point of view, all marketing activities need to be included, they have to be repeated over period of time and they must fulfill technical and statistical criteria required for all measurement systems.

Once organizations identify their marketing matrics, they have to ensure that their marketing strategy is appropriate with target customers and they have not choosen wrong marketing mix. Marketing control system helps companies to evaluate their marketing efforts. There are four types of marketing control system: annual-plan control, profitability control, efficiency control and strategic control.

Marketing control

Annual-plan control:
Annual-plan control is a very essential tool to determine effectiveness of marketing efforts undertaken by the organisation. It mainly aims at sales and profitability. Mostly top level and medium level managements are involved in this type of control. It comprises of five tools that are sales analysis, market share analysis, expence to sales analysis, financial analysis and customer satisfaction.

Profitability control:
Profitability control demonstrates the relative profit-earning capacity of a company’s different products and consumer group.

Efficiency control:
Efficiency control involves micro-level analysis of the various elements of the marketing mix. For example: sales force, advertising, sales promotion, and distribution.

Strategic control:
Strategic control helps managers to evaluate a company’s marketing program from a critical long-term perspective. This represents a detailed and objective analysis of an organization. It also helps to understand organisation’s ablity to maximize its strengths and market opportunities.


Farris, P.W., Bendle, N.T., Pfeifer, P.E. and Reibstein, D.J., 2010. Marketing metrics: The definitive guide to measuring marketing performance.

Mooradian, T., Matzler, K. and Ring, L., 2013. Strategic Marketing: Pearson New International Edition. Pearson Higher Ed.

Murdoch, W., Polasky, S., Wilson, K.A., Possingham, H.P., Kareiva, P. and Shaw, R., 2007. Maximizing return on investment in conservation. Biological Conservation, 139(3), pp.375-388.

Parmenter, D., 2015. Key performance indicators: developing, implementing, and using winning KPIs.

Pursuit of performance excellence: business success through effective plant operation matrics. A MESA Matrics research study, February 2012.





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