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Marketing Metrics, 4th Edition

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  • Copyright 2021
  • Pages: 512
  • Edition: 4th
  • eBook (Watermarked)
  • ISBN-10: 0-13-675527-5
  • ISBN-13: 978-0-13-675527-2

Your Definitive, Up-to-Date Guide to Marketing MetricsChoosing Them, Implementing Them, Applying Them

This award-winning guide will help you accurately quantify the performance of all your marketing investments, increase marketing ROI, and grow profits. Four renowned experts help you apply today's best practices for assessing everything from brand equity to social media, email performance, and rich media interaction.

This updated edition shows how to measure costly sponsorships, explores links between marketing and financial metrics for current and aspiring C-suite decision-makers; presents better ways to measure omnichannel marketing activities; and includes a new section on accountability and standardization in marketing measurement. As in their best-selling previous editions, the authors present pros, cons, and practical guidance for every technique they cover. 

  • Measure promotions, advertising, distribution, customer perceptions, competitor power, margins, pricing, product portfolios, salesforces, and more
  • Apply web, online, social, and mobile metrics more effectively
  • Build models to optimize planning and decision-making
  • Attribute purchase decisions when multiple channels interact
  • Understand the links between search and distribution, and use new online distribution metrics
  • Evaluate marketing's impact on a publicly traded firm's financial objectives

Whatever your marketing role, Marketing Metrics will help you choose the right metrics for everytaskand capture data that's valid, reliable, and actionable.

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Table of Contents

Foreword     xvii
Foreword to the Fourth Edition     xix
Chapter 1:  Introduction     1
1.1 What Is a Metric?       1
1.2 Why Do You Need Metrics?     1
1.3 Marketing Metrics: Opportunities, Performance, and Accountability     2
1.4 Choosing the Right Numbers     3
1.5 What Are We Measuring?     3
1.6 Value of Information     5
1.7 Mastering Metrics     7
1.8 Where Are the Top Ten Metrics?     7
1.9 What Is New in the Fourth Edition?     9
1.10 New Developments in the World of Marketing Metrics     10
Chapter 2:  Share of Hearts, Minds, and Markets     19
Introduction     19
2.1 Market Share     24
2.2 Relative Market Share and Market Concentration     27
2.3 Brand Development Index and Category Development Index     31
2.4 Penetration     33
2.5 Share of Requirements     36
2.6 Usage Index     40
2.7 Awareness, Attitudes, and Usage (AAU): Metrics of the Hierarchy of Effects     44
2.8 Customer Satisfaction and Willingness to Recommend     49
2.9 Net Promoter     53
2.10 Willingness to Search     55
2.11 Neuroscience Measures     57
Chapter 3:  Margins and Profits     67
Introduction     67
3.1 Margins     71
3.2 Prices and Channel Margins     77
3.3 Average Price per Unit and Price per Statistical Unit     87
3.4 Variable Costs and Fixed Costs     93
3.5 Marketing SpendingTotal, Fixed, and Variable     99
3.6 Break-Even Analysis and Contribution Analysis     104
3.7 Profit-Based Sales Targets     108
Chapter 4:  Product and Portfolio Management     113
Introduction     113
4.1 Trial, Repeat, Penetration, and Volume Projections     116
4.2 Growth: Percentage and CAGR     129
4.3 Cannibalization Rates and Fair Share Draw     134
4.4 Brand Equity Metrics     140
4.5 Conjoint Utilities and Consumer Preference     149
4.6 Segmentation Using Conjoint Utilities     154
4.7 Conjoint Utilities and Volume Projection     157
Chapter 5:  Customer Profitability     159
Introduction     159
5.1 Customers, Recency, and Retention     162
5.2 Customer Profit     167
5.3 Customer Lifetime Value     172
5.4 Prospect Lifetime Value Versus Customer Value     178
5.5 Acquisition Versus Retention Cost     182
Chapter 6:  Sales Force Management     185
Introduction     185
6.1 Sales Force Coverage: Territories     187
6.2 Sales Force Objectives: Setting Goals     190
6.3 Sales Force Effectiveness: Measuring Effort, Potential, and Results     194
6.4 Sales Force Compensation: Salary/Reward Mix     198
6.5 Sales Force Tracking: Pipeline Analysis     201
Chapter 7:  Channel Management     207
Introduction     207
7.1 Numeric, ACV and PCV Distribution, Facings/Share of Shelf     210
7.2 Supply Chain Metrics     217
7.3 SKU Profitability: Markdowns, GMROII, and DPP     223
7.4 Online Distribution Metrics     228
7.5 Combining Search and Distribution     230
7.6 Understanding Channel Dependencies     231
Chapter 8:  Pricing Strategy     235
Introduction     235
8.1 Price Premium     238
8.2 Reservation Price and Percent Good Value     242
8.3 Price Elasticity of Demand     248
8.4 Optimal Prices and Linear and Constant Demand Functions     255
8.5 Own, Cross, and Residual Price Elasticity     268
Chapter 9:  Promotion     279
Introduction     279
9.1 Baseline Sales, Incremental Sales, and Promotional Lift     282
9.2 Redemption Rates, Costs for Coupons and Rebates, and Percentage Sales with Coupon     290
9.3 Promotions and Pass-Through     293
9.4 Price Waterfall     296
Chapter 10:  Advertising and Sponsorship Metrics     303
Introduction     303
10.1 Advertising: Impressions, Exposures, Opportunities-to-See (OTS), Gross Rating Points (GRPs), and Target Rating Points (TRPs)     307
10.2 Cost per Thousand Impressions (CPM) Rates     312
10.3 Reach, Net Reach, and Frequency     314
10.4 Frequency Response Functions     318
10.5 Effective Reach and Effective Frequency     323
10.6 Share of Voice     325
10.7 Advertising Elasticity of Demand     327
10.8 Return on Advertising Spend (ROAS)     332
10.9 Equivalent Media Value from Sponsorship     334
10.10 Sponsorship ROI     336
Chapter 11:  Online, Email, and Mobile Metrics     341
Introduction     341
11.1 Impressions and Pageviews     345
11.2 Media Display Time and Interaction Rate     348
11.3 Clickthrough Rates     351
11.4 Cost per Impression, Cost per Click, and Cost per Order     355
11.5 Visits, Visitors, and Abandonment     360
11.6 Bounce Rate (website)     364
11.7 Social Media Metrics: Friends/Followers/Supporters/Likes     367
11.8 Downloads     370
11.9 Mobile Metrics     372
11.10 Email Metrics     374
Chapter 12:  Marketing and Finance     377
Introduction     377
12.1 Net Profit and Return on Sales     380
12.2 Return on Investment     382
12.3 Economic ProfitEVA     383
12.4 Evaluating Multi-period Investments     386
12.5 Marketing Return on Investment     390
12.6 Financial Market Measures     397
12.7 Combined Market and Accounting Measures     399
Chapter 13:  The Marketing Metrics X-Ray and Testing     403
13.1 The Marketing Metrics X-Ray     403
13.2 The Value of Information     412
13.3 Testing     414
Chapter 14:  System of Metrics     421
14.1 Modeling Firm Performance     421
14.2 Three Reasons for Using Systems of Identities in Marketing     424
14.3 Marketing Mix Models: Monitoring Relationships Between Marketing Decisions and Objectives     429
14.4 Related Metrics and Concepts     433
Bibliography     435
Endnotes     439
Index     447


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