The idea of marketing evaluation can be described in a much simpler tone than the definition given in the management books. As discussed by Mooradian et al. 2013, marketing management are the techniques, which are used after a marketing plan period to assess the success or the failure in acquiring the marketing objectives and the accomplishment of the marketing efforts. Here the idea of marketing metrics comes to the limelight. As opined by Rancati and Gordini 2014, marketing metrics is a set of procedures that a marketer uses to enumerate, compare and understand the marketing performance of his enterprise. Thus, marketing metrics are instrumental is an effective marketing evaluation. Various companies use the marketing evaluation process for better operation. Now the marketing evaluation can be done with the help of the marketing metrics.
As discussed by Marshall et al. 2014, the marketers need a marketing metrics to guide his marketing actions. It provides the manager with the information of how the brand is performing, and what improvements are needed. It describes the brands’ activities, the reaction of the market, etc. to the marketers. This marketing metrics possess an array of components. Financial metrics counts the profit contribution of the brand. The profit margin is also calculated here. It also measures the customer value and the customer lifetime value of the brand (Rancati and Gordini 2014).
For an example, in order to evaluate the market growth of B2M solution, one of the largest technological companies based on Australia, the marketing managers have concentrated on two factors that include market urgency and market size.As per the market urgency, it has been observed that B2M solution is able to create a huge demand on the market for their Android development style (Mooradian et al. 2013). Consequently, this company has achieved annual award honor for leading mobile enterprise in last year. This particular achievement has helped the organization to evaluate the market by creating an urgency.
Behavioural metrics includes evaluation of the sales, market share, market penetration, purchase frequency, SCR, etc. of the brand. Memory metrics evaluates the brand awareness among the clients, brand image, customer satisfaction, etc. Physical availability metrics helps in creating strategies for making the brand easy to notice and buy for the customers. It includes the number of outlets, operating hours, geographical coverage, etc. In addition, by applying cost acquisition strategy Woolworth has made an effective market evaluation strategy. cost acquisition strategy is a particular method based on which marketing managers get to know how the attention of the consumers can be drawn towards their product. After conducting the market evaluation Woolworth is able to satisfy the demand of more than 28 million customers per day. Marketing activity metrics is needed for the marketers evaluate its marketing investments and the utility of it. Customer profile parameters are helpful in detecting the target customers. Here the example of Amazon can be taken. They have evaluated their customers and identified the fake authors in their websites. It helped them to retain the right brand value. Now depending on these metrics, the marketing evaluation process concentrates on the marketing control to ensure the success of the marketing plans. There are four types of marketing evaluation control is present. Annual plan control ensures that the company is achieving the sales, profit and other related goals stated in the annual plans. A company uses sales analysis, market share analysis, and financial analysis. It consists of all managerial objectives (Babin and Zikmund 2015).
Profitability control helps in obtaining better profitability of the products. A company follows the strategy of marketing profitability analysis, determining remedial actions, and a measurement of a direct vs. full costing for better profit margin. The online retailer Jet.com has used the strategy of virtual operation in a different pricing pattern to obtain better profitability.
Efficiency control is used to augment the effectiveness of the marketing activities. It includes sales force efficiency and advertising efficiency, sales promotion and distribution efficiency (Beukes et al. 2014).Companies should make a regular reassessment of the marketing strategies with a marketing audit. The strategies should focus on the customer philosophy, unifying different marketing methods, and set of procedures for acquiring factual market data, operational efficiency and strategic orientation. The audit should review the marketing environment as well as the organization, public view, customers and the competitors. The ethical and social responsibility review should also be done to ensure better operation of the marketing strategies (Huber et al. 2016). Here, the story of Amazon can be told again.
Last but not the least, it can be said that marketing evaluation is changing as the marketing strategies are changing their characters. The traditional ways are getting replaced by new strategies.
Name : Darshan Thota Venkatachalapathi
Deakin user name : dthotave
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