Put Your Money Where Your Metrics Are!

Any marketing strategy is designed to produce desired results. Traditional marketing plans were contrived to drive sales. However, these strategies evolved as marketers understood the other attributes they need to stress on. The promotional activities conducted my marketers now, are not only sales driven but also planned to gain market share and generate brand equity.

It has become increasingly important for marketers to measure the effects of their work. Their evaluation of the market plan helps them conclude if their strategy was successful in producing the desired results. How easy is it then to evaluate their strategy?

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Take for instance, the promotional activity conducted by Lipton Ice Tea. Their marketing plan involves giving out samples of the product at a University festival to judges, student bands and students of the organizing committee. While at the same time they also set up sales gazebos in the campus. This activity of sampling helps them create visibility that lures other students and invitees into buying their product. The financial metric is then used to evaluate their marketing strategy. The products that have been sampled by them is their marketing cost. Red Bull follows similar marketing plan and evaluation method during university festivals or other outdoor activities. The results of such tactics and strategies can be quantified. A positive result of evaluation prove the effectiveness of the strategy, and are worth additional investment.

Return on Investment is a very important measure to determine outcome. However, this metric can only be applied in strategies where the results can be quantified in terms of sales revenue. What about other promotional activities whose outcomes are not based on sales? Activities like these are conducted to generate brand equity and awareness. In June of 2013, Red Bull started the hashtag campaign #GivesYouWings on Twitter that trended globally for months together (Campaign Brief Australia, 2013). A similar campaign was conducted by Lipton Ice Tea that encouraged users to post their selfies with the hashtag #BriskPic for a chance to have their pictures on their new limited edition cans (Gauntlett, 2013). How did they then measure the success of these campaigns? Simple, they quantify this in terms of tweets, clicks or followers gained. Evaluating the influence of social media activities like ‘tweets and followers’ on Twitter or ‘likes and comments’ on Facebook, has become increasingly important for huge brands.

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Do you remember the recent marathon conducted by Red Bull? The ‘Wings for Life’ run that took place in so many countries on the same day. Well, of course it was for a good cause! But what was the motive of doing it on such a large scale? Albeit for a good cause, it was a marketing activity to show their contribution to the society. And how would marketers evaluate the success of this? Evaluating the amount of coverage these activities receive in the media is how they measure the outcome of this strategy.

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If all these were dedicated promotional activities, there is also the promotional materials, also known as point of sale materials that marketers use to market their product. What are these materials? Let’s say you walked into Coles or Woolworths, what was the first thing on display you saw? Was there a product that particularly caught your attention for the way it was displayed? Red Bull and Lipton use some exceptionally attractive point of sale materials. This marketing tool is simple yet very effective in drawing customer’s attention to the product. Simpler is the method of evaluating this marketing tool. The physical availability metrics includes the availability of such shelves or display items devoted to the brand which helps evaluate the purpose of their use. In other words, whether or not these materials help drive sales is measured using this metrics.

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How did evaluation of their strategies help them? Constantly monitoring and evaluating their marketing plans have helped these big brands judge whether their strategies is delivering the best possible results, thus saving time and money.

References

Campaign Brief Australia. (2013). Red Bull set to launch new ‘World of Red Bull’ campaign during Men’s Finals in Australian Open. [online] Available at: http://www.campaignbrief.com/2013/01/red-bull-set-to-launch-new-wor.html [Accessed 21 May 2016].

Gauntlett, R. (2013). 10 Best Brand Campaigns on Instagram. [online] It’s Pixel Perfect. Available at: https://itspixelperfectblog.wordpress.com/2013/06/26/10-best-brand-campaigns-on-instagram/ [Accessed 19 May 2016].

Blog by: Sagarayaan Khakhaar
ID: 215354728
Username: @sagarayaan
Topic: Market Evaluation

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