MARKETING EVALUATION: –
It is defined as analysis of outgoing or completed activities that determine or support management, accountability, effectiveness and interpret marketing performance of their particular brand in the market. (Anon., n.d.)
NEED OF MARKETING EVALUATION: –
It is used as the measurement to assess the planning of the marketing actions for the managers, moreover marketing evaluation will clearly give the picture on how the brand and business is performing in the market, not it can be expanded that is methods to expand in the market. The various other reasons why companies make a marketing metric is to evaluate.
Marketing evaluation is to check their marketing progress towards their annual goals. It gives the clear idea on area where marketing mix is needed (that can be segmentation, targeting). To access whether company goods services and ideas meet customer and stake holder satisfaction.
Marketing evaluation picks out the strengths and weaknesses of that brand in the market size and further growth. It gives as clear eye on the present market trends that have to be adopted. (BERRY, n.d.)
METHODS OF MARKETING EVALUATION: –
It is a step by step procedure that follows various steps and sequence
1.FINANCIAL METRICS – It is divided into various sub divisions
- PROFIT CONTRIBUTION – It represents the portion of sales revenue that is not consumed by variable cost and so contribute to the coverage of fixed costs
- PROFIT MARGIN – it is defined as a percentage and keep measures how much out of every dollar of sales a company actually keep in earnings.(Anon., n.d.)
- RETURN ON INVESTMENT – it is a measurement of gain or loss that id generated on an investment relative to the amount of money invested.
ROI = (NET PROFIT OR NET LOSS / COST OF INVESTMENT) *100\
2.CUSTOMER METRICS – includes a variety of construct and are categorized into behavioral and perceptual measures. Behavioral measures include behavior that typically relate to purchase or consumption of a product on the other hand and perceptual measures include retention and life time value for example service quality. (zeitham, 2004)
3.BEHAVIORAL METRICS – the name itself indicates that it depends upon the nature of behavior and mainly deals with number of sales, share in the market, products sold in that particular category, frequency of purchase of particular brands, customer satisfaction, customer complaints and their recommendations for the improvement of the brand.
4.MEMORY METRICS – the name itself has clearly mentioned and describes the things like brand awareness, brand image, customer satisfactory, quality service and intention to buy.
5.PHYSICAL AVAILABILITY METRICS – the success of brand will ultimately depend upon the physical availability metrics of the brand and it includes
- NUMBER OF DISTRIBUTION POINTS – More the distribution points more will be the availability and higher will be the consumption.
- NUMBER OF HOURS OPENED – this is also a directly proportional thing as the number of hours opened then increase in the sales occurred
- Geographical coverage of delivery point and number of display points in store, number of shelves that given to that particular brand and it also defines the sales ratio.
6.Marketing activity and customer profile evaluation : – it is necessary for company to come out public and frequently conduct some good programs such that their brand name get struck into the mind and other thing is that one should carefully evaluate the customer profile that will help to identify and reach the different buyers in a brand, not only this but helps the companies to how to overcome certain problems
On the whole one can easily conclude that marketing evaluation is important for a company for its expansion and also to known its position in the market
Anon., n.d. business dictonary.com. [Online]
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Anon., n.d. http://www.investopedia.com. [Online]
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BERRY, T., n.d. conducting a marketing analysis for your business plan.
zeitham, s. g. a. v., 2004. customer metrics and their impact on financial performance.