MKTG 3653 slides 1-3 review

Legendary marketing professor, Philip Kotler said:

"marketing purpose is to, find, keep, and grow the value of the customers"

what are the 3 problems associated with marketing?

#1. Knowing if the marketing plan works #2. Accountability and Contribution #3. Credibility

a business discipline called Business Process Management (BPM) whose entire focus is on making processes more:

1. Effective: they do the right things 2. Efficient: they do things right

Identifying valid metrics will involve:

1. Focusing on objectives 2.Measuring efficiency 3.Measuring effectiveness

steps in the marketing analytics process:

1. Identify what to measure 2.Track & analyze measurement data 3.Determine & implement improvement actions 4.Repeat the marketing analytics process

marketing has some historic problems:

1. Measuring effectiveness 2.Providing accountability & proving contribution 3.Earning credibility

To overcome these problems, Marketing needs data & an analytics process to turn data into information.

1. Outcomes of the process are insights, decisions, credibility & influence 2.Gaining deep customer insights -then acting on them -is the holy grail

the 4 types of readiness a business needs to succeed in analytics:

1. Strategic readiness 2. Domain readiness 3. Culture readiness 4. Operational readiness

Marketing analytics process:

1. identify the right metrics 2. track them over time 3. analyze data to identify improvement actions 4. repeat the process

the steps of analytics:

1.Identify the right metrics. 2.Figure out how to collect the data. 3. Track the metrics over time. 4. Analyze the results to gain insights. 5.Take improvement actions. 6. Repeat the process.

why does marketing need data?

1.To measure its effectiveness. 2.To improve its performance. 3.To prove its contribution. 4.To improve its credibility.

profitability metrics include:

Customer satisfaction customer retention customer acquisition

Analytics

Exploiting customer data is the only way to gain critical insights that will let you compete

easiest metrics to track: Activity Output operational

Hardest metrics to track: Outcome Leading indicators Predictive

First, what is the business goals?

Identifying valid metrics for the marketing analytics process must begin with understanding the goals of the business

service quality metrics include:

Net Promoter Score (NPS) churn Responsiveness Brand sentiment

analytics process components include:

People Inputs Steps Tools & technology Outputs

operational metrics

These metrics measure the efficiency of the marketing team. Examples: - Marketing spend per employee - Number of leads generated per sales representative

outcome metrics

These metrics show the business impact of marketing's work. Examples: Market share Customer lifetime value Revenue pipeline contribution

leading indicator metrics

These metrics show the likelihood of outcomes that are important to the business. Examples: Customer share-of-wallet Market growth rate

marketing analytics

a process for measuring and analyzing marketing data to better manage marketing performances and maximize the return on the investment that a company makes in marketing

whats a business process?

a sequence of repeatable steps that consistently produce a primary outcome

output metrics

count the output of things marketing has done - click- through rates on digital ads - web visitors

predictive metrics

expected outcomes, example: probability of purchase( AI technology) likelihood to buy

Activity metrics:

measure effort..... Examples include Number of tweets sent Volume of mailers sent Blog articles written.

vanity metrics

metrics that make the marketing department look good , but don't prove how marketing's efforts are moving the revenue needle (or achieving some other important, business result).

vanity metrics test:

what business decision can the metric help us make? None? It's probably a vanity metric.