| With the intensive development of | | | | and optimizing cross-functional spending, and |
| communications there appeared a great many | | | | improving the efficiency of marketing |
| diverse definitions of marketing. Whatever | | | | activities. |
| the definition marketing is regarded the | | | | |
| unique function of business. At present no | | | | Many marketing system analysts argue that |
| successful business is possible without | | | | marketing performance is inherently ambiguous |
| effective marketing. | | | | because it is difficult to say what is |
| | | | measured. Without well-defined performance |
| One of the corner-stones of business Philip | | | | metrics it is problematic to answer the |
| Kotler defines marketing as human activity | | | | question how the marketers calculate the |
| directed at satisfying needs and wants | | | | value of a marketing campaign. |
| through exchange processes. The marketing | | | | |
| activities commonly include market research, | | | | Marketing performance metrics differ |
| new product development, product life cycle | | | | depending on whether the aim is to evaluate |
| management, pricing, channel management and | | | | performance for consumer or business to |
| promotion. | | | | business companies. To diagnose the |
| | | | performance of both marketing communications |
| Two most conspicuous goals of marketing are | | | | such metrics as media effects analysis, |
| the acquisition of new customers and the | | | | integrated marketing communications tracking |
| retention of the existing ones. Consequently, | | | | and customer satisfaction tracking are often |
| the effectiveness of marketing can be | | | | employed. Other cutting-edge marketing |
| quantified and measured in numbers of new | | | | performance metrics are brand equity and |
| customers and new products purchased by the | | | | customer equity analyses. |
| existing ones. Apart from this, there are | | | | |
| aspects of marketing effectiveness that | | | | However, depending on the situation different |
| cannot be quantified. For instance, the | | | | companies can focus on different types of |
| status of a company, its ability to stay at | | | | metrics. Thus, efficiency metrics are aimed |
| the forefront of the customer's mind are also | | | | at describing the cost to execute marketing |
| considered the benchmarks for testing | | | | projects or campaigns, i.e. staff hours per |
| marketing success. | | | | project and cycle time per project. Program |
| | | | metrics are employed to measure effectiveness |
| In today's fast moving competitive business | | | | by comparing the costs and results. Brand |
| world measuring marketing performance is | | | | metrics are used to measure attitudes related |
| crucial to set future business goals, monitor | | | | to a product by means of surveys. The |
| progress, assess effectiveness and align | | | | knowledge of the brand, preferences for the |
| objectives and tactics. To help businesses | | | | brand, purchase intentions and product |
| thrive marketers utilize analytical data to | | | | satisfaction enable marketers to predict |
| evaluate, recommend, implement and measure | | | | future purchases. Customer value metrics help |
| marketing initiatives, which can propel the | | | | to estimate future sales by individual |
| marketing value of the business. | | | | customers and customer segments. Segment |
| | | | results are of special importance because |
| Marketing success is measured by certain | | | | customers from different spheres of business, |
| performance metrics, which provide insights | | | | demographic groups and other categories tend |
| into better performance management. Some | | | | to behave differently. The principle measures |
| factors within the marketing framework | | | | here are retention and purchase rate, which |
| contribute to enhancing performance | | | | are derived from historical data. |
| management. They include aligning activities | | | | |
| and resources with strategies and goals, | | | | It is essential to consider different metrics |
| linking marketing performance to financial | | | | when building a system for marketing |
| performance, establishing and maintaining | | | | performance measurement. |
| marketing team accountability, integrating | | | | |