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Assessing Market Performance: The Current State of Metrics

After summarising the relevant theoretical foundations, this exploratory paper describes the current state of marketing metrics in the UK. Paper by T Ambler, F Kokkinaki, S Puntoni, D Riley

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"Marketing" is broadly defined as what the whole company does to achieve customer preference and, thereby, its own goals.

We show that both financial and non-financial measures are used though the former continue to predominate. Brand equity bridges short- with long-term effects.

We develop a generalized framework of marketing around six measurement categories: financial, competitive, consumer behavior, consumer intermediate, i.e. thoughts and feelings, direct trade customer and innovativeness.

In addition we established three criteria for the assessment of a metrics system: comparison with internal expectations, e.g. plan, and the external market together with an adjustment for any change in the marketing asset brand equity.

Using this basis, the research gathered an empirical description of current metrics practice in the UK through three stages.

The first was qualitative.

The second stage explored the use and perceived importance of metrics by category, and associations with orientation and performance. Less than one quarter of UK firms review the data to meet all three marketing performance assessment criteria above.

The third stage separated out individual metrics and through a succession of analyses brought us to a general set of 19 metrics which could be used as a starting point by firms wishing to benchmark their own portfolio.

However metrics usage is substantially moderated by size and sector which also moderates the association between orientation and performance.

To download this document in full, click here

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