BUS615: International Marketing

7a. Explain the role of marketing success metrics in evaluating the effectiveness of traditional and digital marketing campaigns

• How can measuring marketing metrics benefit an organization?
• How can marketing metrics help a company enhance their marketing performance?
• What is the difference between ROMI and ROMO?
  

Once a marketing strategy is in place, it is essential for that strategy and campaign to be monitored and evaluated to determine what elements were successful and what aspects of the campaign require revisions. By conducting these analyses, an organization can increase their competitive intelligence, evaluate their strengths and weaknesses, and gain a greater understanding of the opportunities and threats that exist. All of this information will enable the organization to make more effective decisions about the elements in their marketing mix.
 
As noted above, marketing metrics can provide an in-depth evaluation of the competition and also enable a company to potentially anticipate competitor responses. A company can also gain a greater understanding of the brand equity they enjoy and how effective they are in reaching their target markets. By analyzing this information and applying it to the marketing mix, companies are better able to respond to changing market conditions.
 
ROMI stands for return on marketing investment. Short-term ROMI measures market share and enables a company to evaluate the effectiveness of their marketing efforts so that resources can be targeted toward those activities with the best results. Long-term ROMI measures brand awareness, and consumer motives and can also help a company determine where to best place their resources.
 
ROMO stands for return on marketing objective. Since marketing activities tend to have a variety of goals and objectives, this measurement can enable an organization to evaluate their returns based on individual objectives, gain a greater awareness of how all resources are spent, and make more effective decisions about future marketing mix activities.
 
To review, see Evaluating Marketing Performance and Marketing Performance Metrics.

7b. Choose appropriate marketing measurement metrics for planning and implementing market entry strategies 

• What are the various KPIs (key performance indicators) a company might use to measure different organizational levels?
• What are some of the KPIs an organization would use to measure marketing-related business objectives?
• What are some of the KPIs an organization would use to measure marketing communications activities?
  

Company-level KPIs look at the overall performance of an organization relative to company-wide goals. These measure revenue, profitability, market share, and growth.

Department-level KPIs look at the performance of individual departments and the goals that are identified for that function. Team-level KPIs look at the effectiveness of teams and how well they are meeting team goals.

Campaign-level KPIs look at the campaigns that have been launched to evaluate which efforts have been the most successful.

Finally, marketing-tactic-level KPIs look at the marketing tools being used and whether they are connecting with target markets at the appropriate and desired levels.
 
For sales and revenue generation, an organization might measure profitability, number of customers, and customer retention. For market share, a company might use measures to evaluate their market share within the product category, as well as how they compare to their nearest competitor. To measure lead generation, the number of qualified leads, the cost per lead, and traffic sources might be evaluated. To see how well the company is building their brand, they might look at metrics for brand awareness, brand equity, share of voice, and brand communities. To determine whether customer support goals are being met, an organization would likely analyze metrics based on resolution rates, resolution time, and satisfaction levels.
 
When evaluating reach, a company would likely measure the number of impressions, followers, fans, subscribers, and level of repeat visits to determine whether marketing goals are being met. To evaluate engagement, metrics for comments, shares, and reposts/retweets would be analyzed. To measure the effectiveness of paid media, a company would look closely at the number of impressions, cost-per-click, click-thru rates, and profits per customer. To determine the effectiveness of SEO, a company would measure the number of unique visitors, conversion rates, and keyword ranking. When conducting email campaigns, companies would want to evaluate the open rate, the click-thru-rate, as well as the number of messages that are bounced. Finally, when conducting public relations campaigns, organizations should measure brand mentions and advertising value equivalencies and count article clips.
 
To review, see Measuring Marketing Communications Effectiveness.

7c. Use marketing measurement metrics to evaluate the success of a marketing campaign and to determine how to modify campaigns over time 

• What are the most important and usual elements of short-term marketing performance that companies track?
• What are the specific metrics a company can use to evaluate campaign success?
• What are the qualities of a desirable voice of customer metrics?
  

A sales analysis can provide a company with an immediate look at how they are doing. Any deviations or variations from expectations can be immediately addressed. A market share analysis can be done by evaluating overall market share, segment share, relative share, and share among specific target markets. If goals are not being met, revisions can be put into place. An expense analysis can provide an organization with insight into the ratio between expenses and sales levels. Again, when these numbers are not aligned properly, adjustments can be made. An overall financial analysis provides a detailed look at the bottom line and evaluates net profit, ROI, and contributions to profit on sales. These numbers can be evaluated against past company figures, as well as with other organizations in the same industry.
 
There are several metrics that media planners use to analyze the results and impact of a campaign. The first metric is reach, which measures the size of the audience being sought. Frequency refers to the average number of times the audience will be exposed to a particular ad or message. Gross Rating Points (GRPs) represent the formula Reach x Frequency. Target Rating Points (TRPs) are the Gross Rating Points multiplied by the ratio of the targeted audience relative to the total audience. Impressions are the overall number of exposures of a message to individuals or households. Cost per Thousand (CPT) is the cost to reach 1,000 people or households. Finally, Cost per Point (CPP) is the cost to reach one percent of an audience.
 
In evaluating the effectiveness of a campaign, getting direct information from customers is extremely valuable. However, it is also important to ensure that the data collected is useful and that the metrics will provide useful information.
 
First, metrics should be credible. Companies should determine if they are widely accepted and if they have a good track record of results. It is important to ensure that they are based on scientific and academic methods. Reliability is important, as well. Companies should ensure that the results can be applied in many ways and that the methods are consistent over time. Metrics should be precise enough to provide insight and should be expansive enough to provide accurate results. Also, the accuracy of the data is related to an entire customer base and should not address a segment that is too small for application to an entire audience. Data only becomes useful when a company can act on the information they receive. The results of data collection should enable a company to identify areas for improvement and help them prioritize their efforts for the greatest levels of success. Finally, meaningful metrics should help a company make predictions about the future behavior of their customers based on current levels of customer satisfaction.
 
To review, see The Advertising Campaign.

Unit 7 Vocabulary 

This vocabulary list includes the terms that you will need to know to successfully complete the final exam.

• campaign-level-KPIs
  
• company-level KPIs
• Cost per Point (CPP)
• Cost per Thousand (CPT)
• department-level KPIs
• expense analysis
• financial analysis
• Gross Rating Points (GRPs)
• Impressions
• marketing-tactic-level KPIs
• marketing metrics
• market share analysis
• reach
• ROMI
• ROMO
• sales analysis
• Target Rating Points (TRPs)