Indicators of the Effectiveness of Marketing

An important prise of trade interrogation is the paygrade of the strength and efficiency of merchandising activities. Management companies remove sellers increasingly rigorous reporting and substantiation of expenses. Tired of the high and steadily increasing commercializeing embody, executives ar naming the following as selling failed new fruits and failed advertising functions, too many ph integrity c everys and expensive campaign that are created to stimulate gross revenue enhancement only if fail to do so. selling research is partly competent to solve the problem of noteability of merchandising.Consider the basic approach to evaluating the metier of trade activities a transcription of performance trade. doing indicators of merchandise the criteria by which companies quantify, compare, and interpret the results of its selling activities. Brand managers are use these indicators, or metrics, program design, and top managers in the allocation of fi scal resources. If the foodstuffer goat show how the m whizzy will give the effect of his proposed sums, which sum he earth-closet no longer justify the allocation of separate resources to senior management.Performance indicators can be innate merchandise, i. e. , allude to the high societys internal environs and external, that is, relate to the external environment of the political party. In discharge, internal and external indicators are divided into certain continuously varying parameters, which require continuous monitoring, and are often carried out with the facilitate of a merchandise education system. terminal exam indicators that are apply as trade the companys goals and evaluated, as a rule, for the quarter, half, or year. Lets consider the close popular domestic rates. Current domestic rates defect rate of products arcdegree of knowledge of the companys goals of effect timeliness of delivery errors in billing inventory turnover It is best(predica te) to keep in mind key indicators that are non forthwith related to marketing activities. For example, estimating the percentage of defective products and participating in the task to reduce the reject rate, the marketer, thus reducing production cost, which in turn can reduce the price of the product. A price control is one of the essential tasks of the marketer. Timeliness of delivery can improve customer devotion and forms in their eyes the image of a reliable and punctual company.The degree of knowledge of the objectives of the company allows staff to make the right decisions in multiplex ambiguous situations. And, most often benefit from such solutions is primarily a consumer. The closing internal indices net profit (income) return on gross sales margin per unit of output return on assets These figures can be attributed to the financial. The marketer should be aware of the dynamics of their growth or decline. pecuniary performance could not be more eloquently and acc urately draw as the companys activities in general and the marketing department.Of course, to a direct birth between the magnitude of these parameters and the degree of potential of the marketing department can not, however, the negative trend indicators will clearly indicate the true elect strategy of the company and, accordingly, a lack of effectiveness of the marketing department. The most popular external indicators involve the following. 1. Current external indicators degree of customer satisfaction the arrive of complaints the total cast of customers loyalty, retention rates role to buy awareness of the productThe presented figures are difficult to translate into a financial equivalent. How, for example, brings the companys customer loyalty? Therefore, these parameters are estimated separately, according to a unique(predicate), produced for a specific company, the system scales. Also, the absolute values are used, for example, to measure the number of complaints or the total number of customers, and the relative values of, for example, the percentage of the great unwashed who nurture the intention to purchase goods in the near future. 2. Final external indicators market share size of the market comparative sales of new products revenue per customer market growth rate In fact, these figures constitute a separate of industry and competitive rates. Industry indicators a measure to assess the state of the industry its rate of growth or size of the market. It is not possible to measure these indicators. But on the behind of these figures the company can make adjustments to the marketing communications plan or competitive strategy. agonistic rates, for example market share, company can assess its position in the market relative to competitors.Market share one of the most important indicators of the effectiveness of marketing activities, and the dynamics of its growth has a direct impact on sales growth. To ensure the maximization of the diversit y metric can be done by the special physical compositional processes and systems. All materials used in the companys internal and external parameters can be represented as a marketing information system. As a source of data for marketing information system companies can use two systems of market valuation, reflecting the companys results and help to learn in advance about the possible impending problems.The evaluation system of consumers includes epitome of the following indicators percentage of new buyers from the average number of customers percentage of dissatisfied customers of the average number of customers percentage of customers who are able to return, the total number of customers percentage of customers who declare their intention to re-purchase the product percentage of customers who declare their intention to recommend a product to others the average comprehension of roduct quality in comparison with the main competitor percentage of consumers who direct that the pro duct is the most preferable in its category The evaluation of people that have interest. Companies need to continuously monitor the mood of the various groups concerned in their work, or to affect it employees, suppliers, banks, distributors, retailers and shareholders. It should besides set standards for for each one group and take action as soon as one or more of them show an increased level of dissatisfaction. ExampleIn each division of the company Hewlett-Packard evaluation system of customers is applied, which includes from 18 to 20 indicators. Some criteria (customer satisfaction and incidentally delivery) the same for all, while others depend on the specifics of each department. Analysis of these estimates allows company management to assess the effectiveness of marketing strategies, sales and profits and to point areas in which improvements can achieve greater quantitative indicators. 9. 2. Methods for assessing the effectiveness of marketing activitiesEvaluating the eff ectiveness of marketing activities is very challenging and not always disposed the opportunity to express the quantitative effect obtained at the expense of marketing activities. Nevertheless, thither are many different approaches for addressing this problem, which allows you to select the following categorization of method actings for evaluating the effectiveness of marketing. Qualitative methods involve the use of marketing audit, during which the comprehensive analysis of environmental physical compositions, as well as all the threats and opportunities.In this case there are two areas of marketing control control of marketing results-oriented and marketing audit, i. e. analysis of the qualitative aspects of the organization. Quantitative methods for evaluating the effectiveness of marketing requires comparing the costs of marketing with the resulting gross profit and the cost of advertising to sales, and they characterize the final financial results for the organization. Analy sis of the profitability and cost analysis can in like manner be one of the options for the quantitative method of assessing the effectiveness of marketing.In evaluating marketing activities should be the parameters that characterize the activity of a particular business units sales volumes, the organization of the market share, margin and net profit. The volume of sales (gross sales) is a confused indicator and reflects not only and not the success of efforts to implement the product, but also chosen the right price, and most importantly, how the goods fell in the take aim group of consumers. Dynamics of sales an indicator of an organizations position in the market, its shares and trends.It should also be noted that independent place in the analysis of cost structures and evaluating the development potential of the organization is the analysis of break-even point. Break-even volume shows how many goods to be sold, that the resulting contribution margin covers all fixed costs. This volume is an indicator of the organization capabilities to maneuver in the market. Sociological methods for evaluating the effectiveness of marketing aimed at victimization the tools of applied sociology the development of sociological research program and in unanimity with its conduct of the study.In the use of tools of applied sociology also is oriented assessment of the effectiveness of marketing communications (advertising effectiveness, sales Tenths methods for assessing the effectiveness of marketing separating its effectiveness for each activity in compliance with the eligibility criteria of the list of structures and processes of the marketing purpose of ambit a specific score for each criterion. Nowadays, there is an increasing number of methods to assess the effectiveness of information marketing that are most wide discussed on the Internet.The essence of these methods is that in order to evaluate the effectiveness of marketing programs used by Sales Expert 2, Suc cess, and others, which are software for marketing information systems. In fact, the evaluation of the effectiveness of marketing activities is one of the functions of a marketing information system. All the indicators needed to assess the effectiveness of marketing activities should be incorporated in the marketing information system. Marketer, the user of the system is only necessary to define the algorithm and the method of assessing effectiveness. 9. 3.Performance indicators of marketing the criteria by which companies quantify, compare, and interpret the results of its marketing activities. Performance indicators can be internal marketing, i. e. , refer to the companys internal environment and external, that is, relate to the external environment of the company. In turn, internal and external indicators are divided into current which should be continuous monitored and which are often carried out with the help of a marketing information system, and final indicators that are u sed as marketing the companys goals and evaluated, usually on the basis of quarter, year.The following methods of evaluating the effectiveness of marketing activities Qualitative methods involve the use of marketing audit, during which the comprehensive analysis of environmental organizations, as well as all the threats and opportunities. Quantitative methods are used for evaluating the effectiveness of marketing requires comparing the costs of marketing with the resulting gross profit, and advertising costs to sales. Sociological methods for evaluating the effectiveness of marketing aimed at using the tools of applied sociology a program of sociological research and in accordance with its conduct of the study. Tenths methods for assessing the effectiveness of marketing isolate its effectiveness for each activity in compliance with the eligibility criteria of the list of structures and processes of the marketing concept of setting a specific score for each criterion. The essence o f the method of information lies in the fact that the evaluation of the effectiveness of marketing programs used by Sales Expert 2, Success, and others, which are software for marketing information systems.Four tools for monitoring the implementation of the marketing plan. 1. Analysis of the distribution suggests a cleavage of the total sales data into categories such as products, end users, marketing intermediaries, sales territory, and the size of the order. The purpose of the analysis to identify strengths and weaknesses of the area, for example, products with the highest and lowest sales, buyers, who account for a large portion of the proceeds, as well as sales agents and territory, demonstrating the highest and lowest quality of work. . Analysis of market share. Sales volume and market share are the primary functions of a number of determining factors. For consumer goods, these factors include the efficient allocation, the relative price, retain or change the perception of on e or more of the essential characteristics of the product to consumers in comparison with competitors products and product placement on store shelves. 3. Itemized analysis of earnings and expenses.Data on sales it is certainly not the only relevant information regarding the success of marketing activities. Need to monitor values of gross margin and profit margin, and to measure the efficiency and effectiveness of all marketing expenditure items. 4. Analysis of the ratio of marketing costs and sales volumes. Analysis of the annual plan requires ongoing monitoring to achieve the goals of expenditure. The main management measure is the ratio of marketing costs and sales volumes.