It is essential for marketers and their business colleagues to receive a return on every marketing investment that is made. This widely-praised reference has established itself as the definitive guide to choosing the right metrics and using them effectively. The 50+ metrics provided in this reference will help readers prove the business value and efficacy of their efforts. Fully updated to reflect the latest techniques, insights, and research, as well as the importance of digital marketing and social media, Marketing Metrics, Second Edition explains the applications, tradeoffs, and nuances of each metric, and shows exactly how to gain actionable information from the data. For clarity and simplicity, it avoids advanced math: all calculations can be performed by hand, or with basic spreadsheet techniques. This edition covers a wide spectrum of marketing and measurement issues, including: customer perceptions, market share, competitive analysis, margins and profits, product and portfolio management, customer profitability, sales force and channel management, pricing strategy, promotion, advertising media, web metrics, and much more. It also demonstrates how to use marketing metrics as an 'X-ray' to discover leading indicators, and identify crucial new opportunities and challenges. Also included is an entirely new chapter on the systems of metrics that can be used to assess the overall performance of the firm and how marketing initiatives help or hinder.
Bestselling reference for measuring marketing initiatives, updated for digital and 'new marketing' techniques!
Includes added coverage of social media and an entirely new chapter on assessing organizational performance.
About the Authors xi
Foreword to the Second Edition xv
Chapter 1 Introduction 1
Chapter 2 Share of Hearts, Minds, and Markets 27
Chapter 3 Margins and Profits 65
Chapter 4 Product and Portfolio Management 109
Chapter 5 Customer Profitability 153
Chapter 6 Sales Force and Channel Management 181
Chapter 7 Pricing Strategy 219
Chapter 8 Promotion 263
Chapter 9 Advertising Media and Web Metrics 287
Chapter 10 Marketing and Finance 337
Chapter 11 The Marketing Metrics X-Ray 357
Chapter 12 System of Metrics 369
Appendix A Survey of Managers’ Use of Metrics 385
The Definitive Guide to the New State-of-the-Art in Marketing Metrics
Marketing Metrics, Second Edition, is the definitive guide to today’s most valuable marketing metrics. In this thoroughly updated and significantly expanded book, four leading marketing researchers show exactly how to choose the right metrics for every challenge.
The authors show how to use marketing dashboards to view market dynamics from multiple perspectives, maximize accuracy, and “triangulate” to optimal solutions. You’ll discover high-value metrics for virtually every facet of marketing: promotional strategy, advertising, and distribution; customer perceptions; market share; competitors’ power; margins and pricing; products and portfolios; customer profitability; sales forces and channels; and more.
This edition introduces essential new metrics ranging from Net Promoter to social media and brand equity measurement. Last, but not least, it shows how to build comprehensive models to support planning--and optimize every marketing decision you make.
Choose the right metric for every marketing challenge
Understand the full spectrum of marketing metrics: pros, cons, nuances, and application
Gain a deep and thorough understanding of marketing profitability
Quantify the profitability of products, customers, channels, and marketing initiatives
Assess web and social media effectiveness, accurately and in detail
Measure everything from “bounce rates” to the growth of your web communities
Link marketing to your enterprise financial metrics
Understand your true return on marketing investment--and enhance it
This award-winning book will show you how to apply the right metrics to all your marketing investments, get accurate answers, and use them to systematically improve ROI.
You’ll find practical, up-to-the-minute techniques for measuring everything from brand equity to social media, market share to web engagement. For every metric, the authors present real-world pros, cons, and tradeoffs--and help you understand what the numbers really mean. You’ll learn how to design and interpret marketing dashboards to identify emerging opportunities and risks and use powerful new modeling techniques to optimize every decision you make. In this second edition the authors expand their treatment of social marketing, web metrics, and brand equity. They also give readers new systems for organizing marketing metrics into models and dashboards that translate numbers into management insight.
• Strategy + Business “Best Books in Marketing” award winner—now fully updated!
• 30% more coverage: from social media and brand equity to modeling for better decision-making
• Covers promotions, advertising, distribution, customer perception, market share, pricing, margins, portfolios, channels, dashboards, and much more
Paul W. Farris is Landmark Communications Professor and Professor of Marketing at The Darden Graduate Business School, University of Virginia, where he has taught since 1980. Professor Farris’s research has produced award-winning articles on retail power and the measurement of advertising effects. He has published more than 50 articles in journals such as the Harvard Business Review, Journal of Marketing, Journal of Advertising Research, and Marketing Science. He is currently developing improved techniques for integrating marketing and financial metrics and is coauthor of several books, including The Profit Impact of Marketing Strategy Project: Retrospect and Prospects. Farris’s consulting clients have ranged from Apple and IBM to Procter & Gamble and Unilever. He has served on boards of manufacturers, retailers, and e-Business companies. Currently, he is a director of GSI Group, Sto Corp., and The Ohio Art Company.
Neil T. Bendle is a Ph.D. candidate in marketing at the Carlson School of Management, University of Minnesota. While studying for his Ph.D. he has won awards for his teaching, and his thesis has focused on managers’ difficulties in understanding consumer tastes. He holds an MBA from Darden and has nearly a decade’s experience in marketing management, consulting, business systems improvement, and financial management. He was responsible for measuring the success of marketing campaigns for the British Labour Party.
Phillip E. Pfeifer, Richard S. Reynolds Professor of Business Administration at The Darden Graduate Business School, currently specializes in direct/interactive marketing. He has published a popular MBA textbook and more than 35 refereed articles in journals such as the Journal of Interactive Marketing, Journal of Database Marketing, Decision Sciences, and the Journal of Forecasting. In addition to academic articles and a textbook, Mr. Pfeifer is a prolific case writer, having been recognized in 2004 as the Darden School’s faculty leader in terms of external case sales, and in 2008 with a Wachovia Award for Distinguished Case writer. His teaching has won student awards and has been recognized in Business Week’s Guide to the Best Business Schools. Recent consulting clients include Circuit City, Procter & Gamble, and CarMax.
David J. Reibstein is Managing Director of CMO Partners and William Stewart Woodside Professor of Marketing at the Wharton School. Regarded as one of the world’s leading authorities on marketing, he served as Executive Director of the Marketing Sciences Institute, and co-founded Wharton’s CMO Summit, which brings together leading CMOs to address their most pressing challenges. Reibstein architected and teaches the Wharton Executive Education course on marketing metrics. He has an extensive track record consulting with leading businesses, including GE, AT&T Wireless, Shell Oil, HP, Novartis, Johnson & Johnson, Merck, and Major League Baseball. He has served as Vice Dean and Director of Wharton’s Graduate Division, as visiting professor at Stanford and INSEAD, and as faculty member at Harvard. He serves on the Board of Directors of Shopzilla, And1, and several other organizations.