Measuring Marketing: The 100+ Essential Metrics Every Marketer Needs, Third Edition

by John Davis

Overview

The demands of a more dynamic, globalized business world have led to sophisticated methods for quantifying marketing success. This informative guide defines and explains the use of more than 110 key marketing metrics for the success of your business. In eleven focused sections, this resource makes otherwise complex topics understandable. Written for marketing professionals accountable for measurable results as well as senior executives who need a firm understanding of marketing’s impact on a business or product line, it clearly explains the metrics that you can use to measure marketing.

Along the way, you'll be introduced to a variety of important analytical tools, from brand, customer, and sales metrics to advertising, price, and distributions metrics. And with the addition of new examples and metrics—including significant updates to the online/digital/social area— Measuring Marketing, Third Edition will put you in a better position to excel at this difficult endeavor.

Product Details

ISBN-13:	9781501515767
Publisher:	De Gruyter
Publication date:	12/19/2017
Edition description:	3rd ed.
Pages:	390
Product dimensions:	6.70(w) x 9.40(h) x 0.90(d)
Age Range:	18 Years

About the Author

John A. Davis is Chairman of Brand New View LLC, USA. His career spans the academic and business worlds, as a senior executive and leader in both. He is the author of several acclaimed marketing books. John is a visiting professor at the International Olympic Academy in Olympia, Greece, and has also taught at University of Washington, UC Davis and Stanford University, and in partner programs with faculty from University of Chicago, INSEAD, Emory, Munich Business School, and the European Business School. John has also taught in dozens of executive education programs for leading companies, including: IBM, DOW Chemical, and Allianz. His research interests are in global brand leadership, marketing strategy, sports marketing, and marketing accountability. He received his M.B.A. from Columbia Universityand his B.A. from Stanford University.

Table of Contents

Part 1: Corporate Financial Metrics  1

Chapter 1: Revenue  3

Chapter 2: Gross Profit  7

Chapter 3: Value-to-Volume Ratio  9

Chapter 4: Net Profit  13

Chapter 5: Earnings-Based Value  17

Chapter 6: Return on Sales  23

Chapter 7: Return on Assets  25

Chapter 8: Return on Equity  27

Part 2: Marketing Planning Measures  31

Chapter 9: Market Share  33

Chapter 10: Relative Market Share  35

Chapter 11: Market Growth  37

Chapter 12: Market Demand  39

Chapter 13: Market Penetration  41

Chapter 14: Program/Nonprogram Ratio  47

Chapter 15: Program/Payroll Ratio  49

Chapter 16: Causal Forecast  51

Chapter 17: Time Series Analysis  57

Part 3: Brand Metrics  63

Chapter 18: Brand Equity  65

Chapter 19: Brand Scorecards  71

Chapter 20: Brand Premium  75

Chapter 21: Brand Contribution and Review Analysis  81

Part 4: Customers Metrics  85

Chapter 22: Net Sales Contribution  91

Chapter 23: Time-Driven Activity-Based Costing  93

Chapter 24: Segment Profitability  95

Chapter 25: Customer Profitability  99

Chapter 26: Share of Customer  101

Chapter 27: Return on CustomerSM  105

Chapter 28: New Customer Gains  109

Chapter 29: Customer Acquisition Costs  113

Chapter 30: Cost Per Lead  117

Chapter 31: Retention Rate  121

Chapter 32: Churn Rate  125

Chapter 33: Consumer Franchise  129

Chapter 34: Customer Equity and Customer Lifetime Value  133

Chapter 35: Customer Brand Value  137

Chapter 36: Customer Losses  139

Part 5: Product/Offering Metrics  143

Chapter 37: Usage  145

Chapter 38: New Product Purchase Rate  147

Chapter 39: Marketing Cost Per Unit  151

Part 6: Price Matrics  153

Chapter 40: Price  155

Chapter 41: Mark-Up Pricing  159

Chapter 42: Target Return Pricing  163

Chapter 43: Sales Price Variance  165

Chapter 44: Markdown Goods Percentage  169

Chapter 45: Profit Impact  171

Part 7: Advertising/Promotion Metrics  175

Chapter 46: Share of Voice  177

Chapter 47: Recall  179

Chapter 48: Recognition  183

Chapter 49: Reach  185

Chapter 50: Frequency  187

Chapter 51: Gross Rating Points  189

Chapter 52: Cost Per Gross Rating Point  193

Chapter 53: Response Rate  195

Chapter 54: Conversion Rate  199

Chapter 55: Advertising-To-Sales Ratio  201

Chapter 56: Promotion Profit  203

Part 8: Direct Marketing Metrics  207

Chapter 57: Direct Marketing Revenue Goals  209

Chapter 58: Direct Marketing Profit Goals  213

Chapter 59: Direct Marketing Gross Profit  215

Chapter 60: Direct Marketing Net Profit  217

Chapter 61: Direct Marketing Return On Investment  219

Part 9: Digital/Social Metrics  221

Chapter 62: Gross Page Impressions (Or Gross Page Requests)  223

Chapter 63: Word of Mouth  225

Chapter 64: Total Clicks  1

Chapter 65: Click Through Rate  229

Chapter 66: Cost Per Click  231

Chapter 67: Cost Per Action  235

Chapter 68: Pay Per Lead  237

Chapter 69: Activity Ratio for Social Media  239

Chapter 70: Deductive Social Media Return on Investment  241

Chapter 71: Resolution Time  243

Chapter 72: Social Media Profitability  245

Chapter 73: Bounce Rate  247

Chapter 74: Return On Advertising Spend  249

Part 10: Place/Distribution Metrics  251

Chapter 75: Cost Per Sales Dollar  253

Chapter 76: Transactions Per Customer  255

Chapter 77: Transactions Per Hour  257

Chapter 78: Average Transaction Size  259

Chapter 79: Avergage Items Per Transaction  261

Chapter 80: Hourly Customer Traffic  265

Chapter 81: Returns to Net Sales  267

Chapter 82: Inventory Turnover  269

Chapter 83: Percent Inventory Carrying Costs  271

Chapter 84: Gross Margin Return on Inventory Investment  273

Chapter 85: Sales Per Square Foot  277

Chapter 86: Sales/Profits Per Employee  279

Chapter 87: Retail Close Ratio  281

Chapter 88: Retail Margin Percentage  285

Chapter 89: Percent Utilization of Discounts  287

Chapter 90: Shrinkage to Net Sales  289

Part 11: Sales Metrics

Chapter 91: Net Sales Contribution  297

Chapter 92: Absolute Index  299

Chapter 93: Relative Index  303

Chapter 94: Percent of Sales  305

Chapter 95: Independent Sales Representative Analysis  309

Chapter 96: Turnover Rate  311

Chapter 97: Recruiting  315

Chapter 98: Breakdown Approach  317

Chapter 99: Workload Approach  321

Chapter 100: Sales Performance Quotas  327

Chapter 101: Average Sales Per Call  335

Chapter 102: Close Process and Close Ratio  337

Chapter 103: Cost Per Call  341

Chapter 104: Break-Even Sales Volume  343

Chapter 105: Sales Productivity  347

Chapter 106: Four Factor Model  351

Chapter 107: Sales Variance Analysis  355

Chapter 108: Sales Volume Variance  361

Chapter 109: Sales Enablement  365

Chapter 110: Net Promoter ScoreR  367

Index

Editorial Reviews

This book is a go-to resource for marketers looking to better measure the effectiveness of their efforts. The depth of information and approaches it provides helps professionals go beyond the ‘usual suspects’ we use for metrics, and challenges us to explore new methods for determining how well we’re performing. Even better, many of the techniques shift our view of measurement from being a passive reporting tool to using it to be a more forward-looking tool for change.

—Lisa Bodell, CEO, futurethink; Author, Why Simple Wins

　

There is a quote, attributed to Albert Einstein: "Not everything that can be counted counts, and not everything that counts can be counted." In this book of marketing metrics, John Davis provides a brilliant insight into the metrics that do count in marketing. Each metric is explained succinctly so that marketing managers can understand and apply them to their business in a practical way. In a world of disruptive technology and fast changing consumer preferences, knowing what should be measured and how it should be measured is critical. This book should be compulsory reading for all marketing managers who want to stay ahead of the competition.

—Professor Mark Farrell, Head, Graduate School of Business and Law, RMIT University, Australia

　

Creating sustainable value is crucial for today’s companies, and marketing plays a central role in this effort. With so many tools available, from traditional to digital and social media, as well as sophisticated sales organizations and new distribution channels, measuring performance can get quite complicated. John Davis’s book, Measuring Marketing, is the perfect solution, offering clear descriptions and examples of how to measure the value contributed by the various marketing investments. Measuring Marketing is an excellent resource that every marketer and CMO should use.

—Hari Nair, Group Chief Strategy & Innovation Officer, Sime Darby, Kuala Lumpur Malaysia

　

John has delivered a comprehensive, end-to-end view of how to measure and create value. His expertise and approach are increasingly critical for any business to remain competitive.

—Thomas McCabe, Chief Country Officer, USA, DBS Bank

　

John Davis is a recognized expert in the field of marketing science. Measuring Marketing combines advances in the academic analysis of quantifying marketing impact together with deep industry insights to ensure…application to today’s marketing organisations and companies.

—Steve Leonard, CEO, SGInnovate, Singapore

　

One variation of a managerial maxim goes that you can’t manage what you can’t count. John Davis has provided a cartograph of just how to do this. This book sits as comfortably on the aisle of financial analysis books as it does on the aisle of marketing books.

—Pakpoom Vallisuta, Chairman of The Quant Group; Board member of The Board of Visitors, Fuqua School of Business, Duke University

From the Publisher