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