The matrix of marketing metrics

What is the need to evaluate the performance of marketing?

Being a fortune company, one would definitely  like to keep an eye on the performance of marketing activities implemented towards achieving business goals. The evaluation of marketing is based on the qualitative and  quantitative metrics which will further provide insights into the marketing strategy used by an organization. The data collected by a company  can help determine  whether the company has been successful in achieving its marketing objectives or not. If it did, then the same can be followed to garner success in the future. If not, modifications can be made to the marketing mix (product, price, place and promotion) in order to improve performance. 

Introduction to marketing metrics

Be it Nike, McDonald’s, Toyota or any other bigwig, each one of them is keen to employ different methodologies in order to measure the results of their marketing activities. Every company follows a set of metrics to identify whether the goods and services provided by them meet the needs of their customers and stakeholders or not. The measures used to identify these needs are known as marketing metrics. Marketers use these metrics to calculate the profit earnings comparing it with the expenditure done by the companies on its marketing activities.  Marketing metrics can be of many types namely; Financial, behavioral, memory, physical availability, customer profile. The marketing activity metrics are some common metrics used by the companies all over the world. Return on investment (ROI) which comes under the financial metrics is one of the most difficult tools to interpret and forecast as a small campaign with a high ROI can be worth far less in ‘$’ than a large campaign with a low ROI. 

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For example, “Market share” metric which comes under behavioral metrics can be used to check the market  share of Coles as well as Wool worths and help them  find out the proportion used by them in the current market. Recently, it was found  in their marketing evaluation that both the brands are losing market share as they are facing tough competition with their European rival ALDI. Around 37% of shoppers visit at least one Coles, one Woolworths and one other supermarket over the same 4-week period. Only 20% of the shoppers are loyal to one brand according to Roy Morgan Research CEO Michele Levine.

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(NewsMediaWorks, 2016)

“Flybys” and other loyalty programs are rewarding and we know it,  but the real fact is that it is more rewarding for the company as opposed to the customer since flybys helps the company collect data of its customers including their personal details, buying habits i.e  whether a customer prefers taking, visiting hours, pet shopping, shopping for a newborn, buying vegetarian or non-vegetarian food, preference over other products and other useful information which helps the company to make changes to their marketing mix and plan investments next year’s marketing evaluation. The best loyalty programs are the ones which generate insights about their customers and utilize those insights to improve their marketing programs.

(Tedx talks, 2013)

Timely monitoring of different metrics by a firm can give competitive advantages over its rivals  and create more value for the brand and its shareholders. Marketing dashboards can also be useful in determining how well the company is doing in terms of customer and stakeholder based measures. Overall, it can be said that evaluation of marketing tactics by a firm can provide insights to help an organization perform well.

 

Musafirhoonyaro

Student I d – 215210717

 

 

References 

Tedx talks, (2013). Customer loyalty programmes… why bother! : Lance Walker at TEDxTeAro. [image] Available at: https://www.youtube.com/watch?v=5EkiOwoLz-4 [Accessed 23 May 2016].

Motley Fool Australia. (2016). ALDI is stealing market share from Woolworths Limited. [online] Available at: http://www.fool.com.au/2016/04/15/aldi-is-stealing-market-share-from-woolworths-limited/ [Accessed 23 May 2016].

Heraldsun.com.au. (2016). Aldi’s mighty challenge to big two. [online] Available at: http://www.heraldsun.com.au/business/aldi-to-seize-more-market-share-from-coles-and-woolworths/news-story/ac33ebe273f607e214a0d034701fcae0 [Accessed 23 May 2016].

NewsMediaWorks. (2016). Woolworths & Coles lead the way in retail advertising. [online] Available at: http://www.newsmediaworks.com.au/woolworths-coles-lead-the-way-in-retail-advertising/ [Accessed 23 May 2016].

Marketing Evaluation. (2016). [image] Available at: http://catchfiremarketing.com/consulting-services/marketing-evaluation/ [Accessed 23 May 2016].

 

 

 

BUDWEISER -The king of good times

Integrated marketing communication(IMC) is not only a concept but also a process that influences brand value, credibility and sustainability. Evolving trends of the market have served as key drivers for many organisations to adopt integrated marketing communications in order to sustain competitive advantage namely; reducing impact of messages to consumers, positive increase in audience segmentation, need to address all the stakeholder needs through cost-effective means of communication, increasing emergence of ‘marketing communication mix’ through an upsurge in mergers and acquisitions, escalation in the segmentation of various media platforms, need to stand out amongst ‘me-too’ products, rise in retailer’s power as well as an organisation’s endeavour to make a mark in the global market (Thorson and Moore 1996).

For over 160 years, the brewing industry has been dominated by Anheuser-Busch InBev and its world-class American-style lagers namely; Budweiser and Bud Light that have a combined market share of 46.4%. Although the inherently popular beers follow a family recipe utilised by five generations of the Busch family, their successful stint has been enhanced by prudent employment of integrated marketing communication strategies that has continually evolved over the years by comprehensively encoding the message to the firm, successfully conveying the message through the ad in a manner that can be easily decoded by its target consumers (Anheuser-busch.com 2016).

(wisconsin distributors 2016)

Starting from the 1950s wherein Anheuser-Busch InBev  sponsored the popular show “The Ken Murray Show,” with engaging campaigns for Budweiser like “Pick a Pair” that established its market dominance which it continued to maintain through a range of catchy taglines in the coming years like “This Bud’s for You” in 1979 and “Head for the Mountains” as well as the dramatic “Bussscchhh!” can-opening sound of the late 70s and early 80s which highlighted Budweiser’s sensible approach of marketing communications by its ability to emblazon the ad in the consumer’s brain thereby helping them steadily climb the market share ladder (Anheuser-busch.com 2016).

Budweiser’s spectacular emotional advertisements with catchy background music which  impessively manages to touch on the emotions of the target audience were screened during the Super Bowl which is the coveted championship of the National Football League in America having a reach of 111 million viewers namely; “Puppy Love” in 2014 followed by its sequel “Lost puppy” in 2015 managed to strike a chord with its audience by endorsing two celebrities i.e. the golden Labrador puppy and Clydesdale was a phenomenal breakthrough in advertising campaigns by succinctly capitalising on social media’s reach (Siegel 2016).

  • BUDWEISER  SUPER BOWL AD  2014

(Clevver news, 2014)

The sequel to “Puppy love” garnered an overall viewership of 44 million views across YouTube and Facebook; being the most watched advertisement of 2015. The video set off first on Facebook with 18K views ahead of YouTube though YouTube managed to catch up in terms of views towards game day. (, 2015)

  • SEQUEL TO PUPPY LOVE SUPER BOWL AD 2015

(Clevver news 2015)

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(L2 INC 2015)

The Facebook campaign “Buds for buds” allowed an individual to purchase a can from their official website and send it to their friends which they could redeem at the participating bars for this campaign. (JONES 2015)

(JONES 2015)

 

Budweiser has 145K followers on Twitter with 11.4K tweets  and approximately 13 million followers on Facebook highlighting their strong social media presence which is contributing to their market dominance (Budweiser.com 2015).

The company employs sensible strategies in terms of planning out the frequency of its advertisements namely; intense digital promotions before, during and after Super Bowl games which are effected subsequent to teasers one week prior to the game as well as promotional tweets against the competitors in order to maintain their competitive advantage.

Budweiser has made shrewd public relations strategies such as sponsoring various high profile events like the UK premier football league, the Manchester United football club, American football, basketball, baseball, 2006 FIFA World Cup, 2008 China Olympics etc. 

The daily media consumption of the target audience is approximately eight hours with more than two-thirds from television and radio while the remaining consumption is from print media. Budweiser has very wisely targeted most of its advertisement campaigns for television viewers through a judicious public relations programme in order to capitalise on television’s heavy media consumption through the launch of emotionally intriguing advertisements over the past few decades.Another instance of wise public relations strategy by Budweiser is to keep its website up-to-date and issue press kits in conjunction with every press release (Jugenheimer et al. n.d.).

With increasing dependence on the internet in our lives, individuals are resorting to expressing their views, likes and dislikes for various commodities as well services through facebook posts, tweets and live videos (DebBois 2016). This word-of-mouth propaganda has worked in favour of several companies dominating the market like Budweiser which has been a popular beer-choice since the past two centuries.

Currently, Budweiser’s “Not backing down” campaign in 2016 has again served to reinstate their market dominance. Hence, from the discourse; we can gather that Budweiser has adapted to evolving market trends of the times by aptly capitalising on various means of integrated marketing communications; namely advertisements, social media, public relations programs as well as word-of-mouth in order to maintain its market position.

Username: musafirhoonyaro

Student i.d: 215210717

REFERENCES:

Anheuser-busch.com. (2016). Marketing and Advertising | Anheuser-Busch.com. [online] Available at: http://anheuser-busch.com/index.php/our-heritage/history/marketing-and-advertising/ [Accessed 7 May 2016].

Jugenheimer, D., Kelley, L., Hudson, J. and Bradley, S. (n.d.). Advertising and public relations research.

Thorson, E. and Moore, J. (1996). Integrated communication. Mahwah, N.J.: Lawrence Erlbaum Associates.

Anheuser-busch.com. (n.d.). About Anheuser-Busch InBev | Anheuser-Busch.com. [online] Available at: http://anheuser-busch.com/index.php/our-company/about-anheuser-busch/information-about-ab-inbev/ [Accessed 6 May 2016].

JONES, C. (2015). 5 WAYS TO MAKE SOCIAL PLATFORMS WORK FOR YOU. [Blog] Available at: http://www.beutlerink.com/blog/5-ways-to-make-social-platforms-work-for-you/ [Accessed 6 May 2016].

L2 INC, (2015). Super Bowl Insight: Puppies Bring Money. [image] Available at: https://www.l2inc.com/super-bowl-insight-puppies-bring-money-2/2015/blog [Accessed 5 May 2016].

Zaryouni, H. (2016). Super Bowl Insight: Puppies Bring Money. [Blog] Available at: https://www.l2inc.com/super-bowl-insight-puppies-bring-money-2/2015/blog [Accessed 7 May 2016].

Clevver news, (2015). Budweiser “Lost Dog” Superbowl 2015 Commercial THE FEELS. Available at: https://www.youtube.com/watch?v=VWeKtqWc2EA [Accessed 9 May 2016].

Siegel, A. (2016). Budweiser’s ‘Puppy Love’ crowned Ad Meter 50 for 50th bracket champion. [online] Super Bowl 50 Ad Meter. Available at: http://admeter.usatoday.com/2016/02/03/budweisers-puppy-love-crowned-ad-meter-50-for-50th-champion/ [Accessed 6 May 2016].

Siegel, A. (2016). Budweiser’s ‘Puppy Love’ crowned Ad Meter 50 for 50th bracket champion. [online] Super Bowl 50 Ad Meter. Available at: http://admeter.usatoday.com/2016/02/03/budweisers-puppy-love-crowned-ad-meter-50-for-50th-champion/ [Accessed 5 May 2016].

Clevver news, (2014). Budweiser Clydesdale Puppy Love Super Bowl 2014 Commercial. Available at: https://www.youtube.com/watch?v=7p_3lITiK_Q [Accessed 9 May 2016].

 

 

 

 

 

“New Coke”- is it??

Why Market research?

Market Research is the methodical, factual collection as well as investigation of  data regarding the intended market and marketplace rivalry. It  is an essential tool that will assist bigwigs in decision-making by utilising its results. It should be carried out continually regardless of the present situation of a company in order to stay up to date with the market trends.

Market Research: a boon or a bane for Coca Cola..?

Coke has been a universal refreshment drink among customers which has a strong brand value where customers choose coke as their soft drink of choice.

The major problem faced by Coca Cola in the early eighties was their continually dwindling market share that was taken up by  their 87 year old competitor, Pepsi. Pepsi conducted a blind taste test in the form of a “Pepsi taste challenge” wherein the results showcased that consumers preferred sweeter-tasting Pepsi over conventional Coke. They also realised that their better tasting soft drink was sufficient to reduce the market gap between Pepsi and Coke which couldn’t be stopped by Coke irrespective of the resources used for advertising.


     (Entrepreneur, 2014)


Pepsi garnered major success when they started conveying these findings to buyers through their TV advertisement Pepsi Challenge where the coca cola drinkers salivated for the drink they presumed to be cola which was then unveiled to be Pepsi. This campaign made Pepsi the front-runner in the market.


Did you take the Pepsi challenge? 


Coca cola had sufficient reason to believe that taste was the pre-eminent reason for Coke’s decrease in market share in the late 1970’s up to the mid 1980’s. As soon as Coca Cola realised their market share was declining; they confidentially invested sufficient resources to revamp their original recipe in order to counteract their shrinking sales. The market research was carried out by shelling out a stupendous sum of 4 million dollars. The marketers carried out Qualitative research by interviewing 200,000 consumers by asking them about their taste preference from the several concoctions utilised in the blind test. The drink formulation that was largely preferred by about 60 % of the participants was a completely new brew over the original coke and Pepsi. The results were reasonable to finalise the launch of the “New Coke.”

The Coca Cola company rolled out the new formulation under the brand name of “New Coke” on April 25, 1985 which was an exhaustive change from their original formulation that had been in place since the past century. The company intended to refurbish its brand value and up scale its market share in its largest consumer market, United States rather than creating a wave of consumer opposition that followed.


     (EnterpriseMediaVideo, 2016)


Now addressing the elephant in the room; “What went wrong?”

Primarily, there was a flaw in the research methodology.

The decision was made solely on statistical results assuming taste was the deciding factor that influenced consumer behaviour. The research failed to consider the sentimental value of the consumers in relation to the product. The consumers weren’t rightfully informed that the new formulation would replace the original product in the market as they were simply asked “Which formulation did you prefer?”. Rather, the question should have been re-framed as “Would you like this new drink over Coke?”

Furthermore, the company underestimated the effect of the sentimental value of the original formulation.

Also, the focus group that was a part of the market research was not absolutely reflective of the opinions of others who consumed the product and the company did not make any efforts to gauge how would the response of the focus group change in relation to the opinion of other consumers from various walks of life had they been subject to the research study as well.

Lastly, market research was devoid of a quantitative analysis.

All in all, the consumer outrage which transpired was the result of inadequacies in the research methodology and implementation of findings. The study lacked quantitative data due to which the  research findings were not absolutely reflective of the issues that the research was meant to address. The quality of research was substandard due to which they suffered a setback. However, Coca cola learned their lesson in time and within three months launched the original Coke that has ruled the markets and continues to be the first choice of consumers over and above other soda drinks in the market.

 

 

Username – Musafirhoonyaro

Student id – 215210717

REFERENCES

 

M. Schindler, R. (2016). [online] Available at: https://archive.ama.org/archive/ResourceLibrary/MarketingResearch/documents/9602193014.pdf [Accessed 13 Apr. 2016].

EnterpriseMediaVideo, (2016). All About New Coke – from The Excellence Files. Available at: https://youtu.be/BmQs8g9ytRA [Accessed 18 Apr. 2016].

Entrepreneur, (2014). The Iconic Pepsi Ad That Made Coke Go Ballistic. Available at: https://youtu.be/SqH7u5WQ7gE [Accessed 18 Apr. 2016].

Domeneghetti, R. (2012). The Coke Wars: When The Pepsi Challenge Nearly Killed Coca-Cola. [online] sabotagetimes.com. Available at: http://sabotagetimes.com/life/the-coke-wars-when-the-pepsi-challenge-nearly-killed-coca-cola [Accessed 8 Apr. 2016].

coca-colacompany. (2012). The Real Story of New Coke. [online] Available at: http://www.coca-colacompany.com/stories/coke-lore-new-coke/ [Accessed 10 Apr. 2016].

Anon, (2016). [image] Available at: https://wallpaperscraft.com/download/coca-cola_logo_classic_red_4106/3840×2400 [Accessed 18 Apr. 2016].

Den Beld, B. (2012). [image] Available at: http://www.stateofdigital.com/bing-challenging-google/ [Accessed 17 Apr. 2016].

Marketest.co.uk. (2016). What is Market Research and what is it used for? – Marketest. [online] Available at: http://www.marketest.co.uk/what-is-market-research [Accessed 14 Apr. 2016].

Smallbusiness.wa.gov.au. (2016). Why do market research. [online] Available at: https://www.smallbusiness.wa.gov.au/business-topics/marketing/market-research/step-1-why-do-market-research/ [Accessed 16 Apr. 2016].

Don’t judge a book by its cover. Cheers

 

Image result for consumer behaviour celebrity endorsement

What impresses the customer? Could be anything right?. Consumers don’t know what influences their purchase, customers make buying decision with every purchase and a lot of factors affect their buying habits for ex. social circle(friends  or family member uses the same product). Although there are several factors influencing customer behaviour, one of the major factors is the celebrity or the face of the brand.Brand utilizes the power and brand value of the celebrity to reach their audience; for a brand the most important thing is for people to know about the brand rather than buying its product in the first place.

Advertisements help  remember the product and watching your favourite actor or athlete endorsing the brand attaches a certain sentimental value to that brand. We all are human and we make mistakes and our mistakes are only known to few but if a celebrity who has millions of followers makes a small mistake it can easily be reported or seen on a social media, further ruining his brand image.

Image result for consumer behaviour celebrity endorsement

There is no doubt that the celebrity can help lift up a brand from low sales like Michael Jordan did for Nike but there are downsides as well which include overshadowing of the brand and controversy which revolves around the brand personality for example Angelina Jolie overshadowed St. Johns fashion brand. A company selects its brand ambassador to enhance the value of the brand. As far as psychological factors concern people tend to have greater acceptance for those brands which are supported by a well known celebrity. People expect the quality of a celebrity in the product which prompts them buy the particular product but when a celebrity looses his brand image due to any controversy it goes other way round with the product. Now the question is how the perception of a consumer changes with the face of the brand?

Recently Maria Sharapova One of the world’s highest paid female tennis player has tremendously lost her credibility and customer trust as a brand ambassador after failing a drug test in Australian open. She has been dropped by some of the big names in the industry like  Nike, Tag Heuer and Porsche as this news could damage the image of the brand and can further result in dipping sales.

Image result for maria sharapova brand suspension

 

 

 

 

 

 

 

Nike suspended Lance Armstrong after he was found guilty for participating in performance enhancing drugs from 2010 – 2013 but Nike supported Tiger Woods even after the controversy as woods didn’t cheat in his game to gain success like Armstrong.

 

One thing is clear about the consumer behaviour is that the perception of consumer matters for the company which can be justified by the thought process involved in their decisions regarding the selection or dismissal of a celebrity. Apparently it throws light on the fact that consumers do not use their self-conscious when it comes to decision making; rather they blindly follow their idol. What if a particular celebrity engage with the different brand, will the follower switch their brand? If yes then it makes consumer weaklings and if not, then the previous decision of consumer becomes questionable.

So, it can be said  that the consumer has been victim of smart marketing strategy by the brand. However the new phenomenon can be seen in the current market by emulating the example of Tesla Motors, which only laid emphasis on the efficiency of their product  instead of utilizing face value of the celebrity to promote their product. They believe that their product is a celebrity in itself which proves their credibility.  Adaptation of this phenomenon will surely make consumers aware about not only the product but the company. In the future, market strategy will become more crucial as influencing with consumer’s will not be a easy task.

Akash Sharma, @musafirhoonyaro

Student id – 215210717

 

 

 

References

 

McMaken, L. (2012). Failing Brands That Got A Turnaround From Celebs | Investopedia. [online] Investopedia. Available at: http://www.investopedia.com/financial-edge/1012/failing-brands-that-got-a-turnaround-from-celebs.aspx [Accessed 1 Apr. 2016].

MADE Magazine. (2016). Nike Dumps Maria Sharapova After Failed Drug Test | MADE Magazine. [online] Available at: http://www.mademags.com/news/nike-dumps-maria-sharapova-failed-drug-test/ [Accessed 1 Apr. 2016].

Maria sharapova fails drug test, video, abc news, 7 march, viewed 04 april 2016, <https://youtube/vPraj90kcIg&gt;.

Danielle Rossingh, f. (2016). Maria Sharapova: Star’s brand damaged goods?. [online] CNN. Available at: http://edition.cnn.com/2016/03/30/tennis/maria-sharapova-brand-endorsement-sponsorship-drugs-sugarpova/index.html?sr=twCNN033016maria-sharapova-brand-endorsement-sponsorship-drugs-sugarpova0535PMStoryLink&linkId=22877881 [Accessed 3 Apr. 2016].

Anon, (2016). [image] Available at: https://naikanomtom.wordpress.com/2012/12/30/naika-looks-back-on-2012-ho-leeeeeeee-shit/just-inject-it-lance-armstrong/ [Accessed 3 Apr. 2016].

Kay, E. (2012). Why Nike stands by Tiger Woods but dumps Lance Armstrong. [online] SBNation.com. Available at: http://www.sbnation.com/golf/2012/10/19/3526602/tiger-woods-nike-lance-armstrong [Accessed 4 Apr. 2016].