Synopses & Reviews
"Well organized and succinct,
Measuring Marketing is both a comprehensive, prescriptive look at the variety of ways to evaluate the impact of marketing, as well as an excellent reference guide. A practical analytical tool in today's complex, multidimensional business world to help decision makers understand marketing's impact on a business or product line,
Measuring Marketing is applicable from start-up to established player. Particularly helpful are the examples of measurement for each metric and the discussion of how each impacts decision making."
Brent N. Smith, Managing Partner LevelOne Capital Limited
"John has successfully demonstrated marketing has very finite and tangible attributes that are quantifiable and will benefit any organization focused on both value and volume. If we are honest, most global organizations fall short in quantifying the value of marketing. Measuring Marketing clearly defines what is important to measure and why. Both will favorably influence a company's decisions in investing in marketing that will eventually flow to its investors with the realization that the use of capital is being maximized. John has masterfully proven marketing has many more quantifiable components than most recognize. It is a magnificent tool for any organization's marketing department to apply concurrently in discussions with their Finance departments."
Kevin Goulding, President and CEO, AIG China
"Every CEO has the responsibility of ensuring their company's brand is positively promoted and protected, and effective marketing plays a big part. However, the CEO is frequently asking 'is the money we are spending making a difference?' The question of 'should the company invest more, or less, on marketing' is impossible to answer unless there are specific and tangible marketing metrics that can be measured. Knowing what and how to measure marketing in a data-driven way has been difficult, but John Davis has built on his many years of marketing experience, in both the business and academic worlds, to craft a proven methodology. Now, in this updated edition, John takes his research further to offer new insights and answers to 'how can we be sure our marketing investment is driving the results we want?'"
Steven Leonard, President, EMC Asia Pacific/ Japan, EMC Corporation
"Measuring Marketing is a comprehensive outline of marketing conceptsfrom basic fundamentals to advanced, state-of-the-art topicswritten in a clear, thought-provoking manner. The examples provided and impacts on decision-making sections draw valuable insights into how the concepts can be leveraged to drive share owner value. It's a must-read reference book for both the marketing professional and the P&L owner."
William Brown, President and CEO, Harris Corporation
"I have been in marketing for 20+ years and have had to come by this information piecemeal. Measuring Marketing is bound to become as indispensable to marketers as the AP Stylebook is to writers. It is a superb catalogue of KPIs for any business, large or small. John's easy-to-approach explanations of each measurement and its impact on decision-making are ideal for both financially and non-financially oriented managers. Measuring Marketing should be handed out alongside diplomas for all marketing graduates."
David Maddocks, founder, The David Maddocks Company; former Chief Marketing Officer, Converse
"John Davis's innovative approach to measuring marketing effectiveness is redefining the traditional business process of managing, measuring, and allocating marketing investment. The complexity of the new marketing channels created in the last decade and increased need to differentiate your brand have exposed the need for more product and brand performance metrics. Comparing John's insights to traditional marketing practices is like comparing the MRI to the X-ray."
Thomas McCabe, Managing Director and Global Business Head, DBS Bank
"John Davis's book Measuring Marketing offers a very systematic and quantitative platform in designing and assessing key marketing initiatives. Use of simple KPIs will allow marketers to make mid-course corrections if needed and achieve desired results. I would highly recommend this book to all marketers."
Ravi Agarwal, Practice Faculty on Leadership in Asia, MBA/EMBA programs, Nanyang Business School
Review
Marketing directors and CEOs who wish to make their marketing expenditures accountable face a bewildering array of potential measures, the definition of which is not always clear, leave alone their relevance. In Measuring Marketing: 103 Key Metrics, John Davis provides CEOs and marketers with an easy way to know just how each measurement is defined and the context in which it can be used. I am sure that it will make an invaluable reference in the designing and assessing of marketing information systems.
John Roberts,
Professor of Marketing, London Business School, Scientia Professor,
The Australian Graduate School of Management.
John Davis's book is a much needed, concise summary of key marketing metrics. He shows us not only how to calculate the right number but also how to use it in decision making.
Bernd Schmitt,
Robert D. Calkins, Professor of International Business, Columbia Business School,
Executive Director, Center on Global Brand Leadership
This is a book which I'll certainly make sure all my marketing colleagues carry at all times…John Davis's book provides such a rounded and comprehensive approach to understanding the nuts and bolts of marketing, that any marketer, in any industry, should select his or her own key metrics from the book to create a personalized, dynamic and balanced framework for measuring his or her own work. A must-have for all marketers!
Ho Kwon Ping,
Executive Chairman
Banyan Tree Group
John Davis has written a readable book that will be of immense, practical help to marketers. His book presents clearly and succinctly over 100 easy-to-use metrics to assess marketing effectiveness. Every marketer should have it on their bookshelves.
Pang Eng Fong
Dean, Lee Kong Chian School of Business
Singapore Management University
We all know the old saying that “You can't manage what you can't measure." This book identifies and discusses the metrics that will help executives manage key marketing activities from product development through sale. It's comprehensive, and readers will surely find measures that are likely to be important in their unique business context.
James Jiambalvo
Dean, University of Washington Business School
Review
Marketing directors and CEOs who wish to make their marketing expenditures accountable face a bewildering array of potential measures, the definition of which is not always clear, leave alone their relevance. In Measuring Marketing: 103 Key Metrics, John Davis provides CEOs and marketers with an easy way to know just how each measurement is defined and the context in which it can be used. I am sure that it will make an invaluable reference in the designing and assessing of marketing information systems.
John Roberts,
Professor of Marketing, London Business School, Scientia Professor,
The Australian Graduate School of Management.
John Davis's book is a much needed, concise summary of key marketing metrics. He shows us not only how to calculate the right number but also how to use it in decision making.
Bernd Schmitt,
Robert D. Calkins, Professor of International Business, Columbia Business School,
Executive Director, Center on Global Brand Leadership
This is a book which I'll certainly make sure all my marketing colleagues carry at all times…John Davis's book provides such a rounded and comprehensive approach to understanding the nuts and bolts of marketing, that any marketer, in any industry, should select his or her own key metrics from the book to create a personalized, dynamic and balanced framework for measuring his or her own work. A must-have for all marketers!
Ho Kwon Ping,
Executive Chairman
Banyan Tree Group
John Davis has written a readable book that will be of immense, practical help to marketers. His book presents clearly and succinctly over 100 easy-to-use metrics to assess marketing effectiveness. Every marketer should have it on their bookshelves.
Pang Eng Fong
Dean, Lee Kong Chian School of Business
Singapore Management University
We all know the old saying that “You can't manage what you can't measure." This book identifies and discusses the metrics that will help executives manage key marketing activities from product development through sale. It's comprehensive, and readers will surely find measures that are likely to be important in their unique business context.
James Jiambalvo
Dean, University of Washington Business School
Synopsis
This second edition discusses the key marketing metrics needed for successfully measuring the performance of an organization’s marketing investments. CEOs and CFOs regularly ask “what measure can I use to determine if my company’s marketing is effective?” The answer is that there is no single measure that accomplishes this. Today’s companies are expected to demonstrate consistent, positive growth and responsible financial performance. Likewise, marketing managers must show a clear return on investment for the plans they recommend. Marketing activities must align with the company’s overall strategic and financial goals. The challenge is to know what marketing activity to measure and when since, as companies grow, customers’ expectations shift and market conditions change, requiring marketers to adapt their strategy and adjust tactics accordingly. Thus, the question frequently asked is:-
Can Marketing Be Measured?
Synopsis
Evaluating marketing performance and decision making more fairlyMarketing has long been considered an art and not a science, but that perception is beginning to change as increasingly sophisticated methods of quantifying marketing success are developed. In Measuring Marketing: 103 Key Metrics Every Marketer Needs, Second Edition, one of the world's leading experts in the field presents the key marketing ratios and metrics. Applying these metrics will enable marketers to make better decisions and increase their accountability for their strategies and activities.
This fully revised and updated new edition discusses the key marketing metrics needed for successfully measuring the performance of an organization's marketing investments. CEOs and CFOs regularly ask for one simple way to assess the efficacy of marketing campaigns, but the fact is that there isn't one single measure of performance. Measuring Marketing helps marketers figure out what they can and should be measuring and when.
- Marketers are increasingly being held accountable for the corporate bottom line, and this book helps both marketers, as well as the business leaders who employ them, to measure performance fairly and accurately
- Measuring marketing success is difficult, but this book shows what and when to assess
- Designed to increase accountability and improve everyday decisions, the book includes ratios illustrated with actual marketing cases from leading companies
The first book to address growing demands that marketers be accountable for their strategies and decisions, Measuring Marketing explains how to assess marketing success in more meaningful ways.
Synopsis
The world of marketing has been turned upside down. Non-marketers view marketers as narrowly focused on advertising-driven image-development, characterized by clever creative e design and vague results. While image-shaping advertising is till important, marketing has changed dramatically indecent years, with increasing emphasis on growth-driven activities that yield measurable results.
CEOs and CFOs regularly ask "what measure can I use to determine if my company's marketing is effective? The answer is that there is no single measure that accomplishes this. Today's companies are expected to demonstrate consistent, positive growth and responsible financial performance. Likewise, marketing mangers must show a clear return investment for the plans they recommend. Marketing activities must align with the company's overall strategic and financial goals. T`he challenge is to know what marketing activity to measure and when since, as companies grow, customers expectations shift and market conditions change, requiring marketers to adapt their strategy and adjust tactics accordingly. From brand building objectives to growth forecasts, traditional marketing to internet marketing, retail promotion to field sales execution, marketers must develop integrated marketing activities that create a differentiated position, address customer needs and demonstrate competitive advantage. Furthermore, marketers must also be able to defend and measure their plans in detail, from the connection to company goals to the execution at the field sales level.
Measure marketing: 103 Key Metrics Every Marketers Needs descr5ibes 103 different measures that marketers and senior managers should know. Organized into three main themes: marketing planning and customers: the offering: and sales force, it is a pr4actical, straightfor5ward references for business leaders seeking clear explanations on how to measure marketing;s most common activities.
Synopsis
Marketing has long been considered more art than science, but the demands of a more dynamic, globalized business world has led to the development of sophisticated methods for quantifying marketing success.Nobody knows this better than author John Davis. For nearly two decades, he's been a thought leader in the fields of marketing and advertising, and now, with
Measuring Marketing, Second Edition, he returns to share his extensive insights with you.
Organized into eleven focused sectionsto reflect the metrics needed today for successfully measuring the performance of an organization's marketing operationsthis reliable resource still remains true to the first edition's effective approach of making a complex topic understandable. Written for both marketing managers who are now accountable for growth-driven activities that must yield measurable results as well as senior executives who need a firm understanding of marketing's impact on a business or product line, this informative guide puts more than 110 key metrics in perspective.
Along the way, you'll be introduced to a variety of these important analytical tools, from brand, customer, and sales metrics to advertising, price, and distributions metrics. And with the addition of new examples and metricsincluding significant updates to the online/digital/social area Measuring Marketing, Second Edition will put you in a better position to excel at this difficult endeavor.
The measurement of marketing performance has become one of today's most important business needs. And while there is no single measure to determine if a company's marketing is truly effective, knowing what you can and should be measuring, as well as knowing when to do it, will keep you one step ahead of the competition. Measuring Marketing, Second Edition can help you achieve these essential goals.
About the Author
John A. Davis is the author of several acclaimed marketing books: the first edition of this book; the first and second editions of The Olympic Games Effect; Competitive Success; Magic Numbers for Sales Management; and Magic Numbers for Consumer Marketing. He is a member of the marketing faculty at the Lundquist College of Business, University of Oregon, where he received the BAC Outstanding Teaching Award in 2012, and Chairman of Brand New View, an executive education and professional services firm. Previously, he was Dean of the Global MBA Program and Professor of Marketing at SP Jain, with campuses in Singapore, Dubai, and Sydney. In 2010, he was the recipient of the "Best Professor in Marketing" honor, awarded by CMO Asia and Asia's Best Business School Awards. Before SP Jain, he was department chair and professor of marketing at Emerson College, and professor of marketing practice at Singapore Management University, where he received the "Most Inspiring Teacher" award and Dean's Teaching Honors. John regularly consults with leading global companies and is a sought-after conference speaker. He has also founded two award-winning companies and has led marketing teams at Nike, Informix, and Transamerica. He received his MBA from Columbia University and his BA from Stanford University.
Table of Contents
Acknowledgments xiii
Introduction xv
SECTION I CORPORATE FINANCIAL METRICS 1
CHAPTER 1 Revenue 3
CHAPTER 2 Gross Profit 5
CHAPTER 3 Value-to-Volume Ratio 7
CHAPTER 4 Net Profit 9
CHAPTER 5 Earnings-Based Value 13
CHAPTER 6 Return on Sales 17
CHAPTER 7 Return on Assets 19
CHAPTER 8 Return on Equity 21
SECTION II MARKETING PLANNING METRICS 25
CHAPTER 9 Market Share 27
CHAPTER 10 Relative Market Share 29
CHAPTER 11 Market Growth 31
CHAPTER 12 Market Demand 33
CHAPTER 13 Market Penetration 35
CHAPTER 14 Program/Non-Program Ratio 41
CHAPTER 15 Program/Payroll Ratio 43
CHAPTER 16 Causal Forecast 45
CHAPTER 17 Time-Series Analysis 49
SECTION III BRAND METRICS 55
CHAPTER 18 Brand Equity 57
CHAPTER 19 Brand Scorecards 61
CHAPTER 20 Brand Premium 65
CHAPTER 21 Brand Contribution and Review Analysis 71
SECTION IV CUSTOMER METRICS 75
CHAPTER 22 Net Sales Contribution 79
CHAPTER 23 Time-Driven Activity-Based Costing 81
CHAPTER 24 Segment Profitability 83
CHAPTER 25 Customer Profitability 87
CHAPTER 26 Share of Customer 89
CHAPTER 27 Return on CustomerSM 91
CHAPTER 28 New Customer Gains 93
CHAPTER 29 Customer Acquisition Costs 95
CHAPTER 30 Cost per Lead 99
CHAPTER 31 Retention Rate 103
CHAPTER 32 Churn Rate 107
CHAPTER 33 Customer Losses 109
CHAPTER 34 Consumer Franchise 111
CHAPTER 35 Customer Equity and Customer Lifetime Value (CLTV) 115
CHAPTER 36 Customer Brand Value 119
SECTION V PRODUCT/OFFERING METRICS 121
CHAPTER 37 Usage 123
CHAPTER 38 New Product Purchase Rate 125
CHAPTER 39 Marketing Cost per Unit 129
SECTION VI PRICE METRICS 131
CHAPTER 40 Price 133
CHAPTER 41 Markup Price 137
CHAPTER 42 Target Return Price 141
CHAPTER 43 Sales Price Variance 143
CHAPTER 44 Markdown Goods Percentage 147
CHAPTER 45 Profit Impact 149
SECTION VII ADVERTISING/PROMOTION METRICS 153
CHAPTER 46 Share of Voice 155
CHAPTER 47 Recall 157
CHAPTER 48 Recognition 161
CHAPTER 49 Reach 163
CHAPTER 50 Frequency 165
CHAPTER 51 Gross Rating Points (GRP) 167
CHAPTER 52 Cost per Gross Rating Point (CPP) 171
CHAPTER 53 Response Rate 173
CHAPTER 54 Conversion Rate 175
CHAPTER 55 Advertising-to-Sales Ratio 177
CHAPTER 56 Promotion Profit 181
SECTION VIII DIRECT MARKETING METRICS 185
CHAPTER 57 Direct Marketing Revenue Goals 187
CHAPTER 58 Direct Marketing Profit Goals 191
CHAPTER 59 Direct Marketing Gross Profit 193
CHAPTER 60 Direct Marketing Net Profit 195
CHAPTER 61 Direct Marketing ROI 197
SECTION IX ONLINE/DIGITAL/SOCIAL METRICS 199
CHAPTER 62 Gross Page Impressions (or Gross Page Requests) 201
CHAPTER 63 Word of Mouth (WOM) 203
CHAPTER 64 Total Clicks 205
CHAPTER 65 Click-Through Rate (CTR) 207
CHAPTER 66 Cost per Click 209
CHAPTER 67 Cost per Action 211
CHAPTER 68 Pay per Lead 213
CHAPTER 69 Activity Ratio for Social Media 215
CHAPTER 70 Deductive Social Media ROI 217
CHAPTER 71 Resolution Time 219
CHAPTER 72 Social Media Profitability 221
SECTION X PLACE/DISTRIBUTION METRICS 223
CHAPTER 73 Cost per Sales Dollar 225
CHAPTER 74 Transactions per Customer 227
CHAPTER 75 Transactions per Hour 229
CHAPTER 76 Average Transaction Size 231
CHAPTER 77 Average Items per Transaction 233
CHAPTER 78 Hourly Customer Traffic 237
CHAPTER 79 Returns to Net Sales 239
CHAPTER 80 Inventory Turnover 241
CHAPTER 81 Percent Inventory Carrying Costs 243
CHAPTER 82 Gross Margin Return on Inventory Investment 245
CHAPTER 83 Sales per Square Foot 247
CHAPTER 84 Sales/Profits per Employee 249
CHAPTER 85 Retail Close Ratio 251
CHAPTER 86 Retailer’s Margin Percentage 253
CHAPTER 87 Percent Utilization of Discounts 255
CHAPTER 88 Shrinkage to Net Sales 257
SECTION XI SALES METRICS 259
CHAPTER 89 Net Sales Contribution 263
CHAPTER 90 Absolute Index (AI) 265
CHAPTER 91 Relative Index 267
CHAPTER 92 Percent of Sales 269
CHAPTER 93 Independent Sales Representative Analysis 273
CHAPTER 94 Turnover Rate 275
CHAPTER 95 Recruiting 279
CHAPTER 96 Breakdown Approach 281
CHAPTER 97 Workload Approach 285
CHAPTER 98 Sales Performance Quotas 289
CHAPTER 99 Average Sales per Call 295
CHAPTER 100 Close Process and Close Ratio 297
CHAPTER 101 Cost per Call 301
CHAPTER 102 Break-Even Sales Volume 303
CHAPTER 103 Sales Productivity 305
CHAPTER 104 Four Factor Model 307
CHAPTER 105 Sales Variance Analysis 309
CHAPTER 106 Sales Volume Variance 313
CHAPTER 107 Straight Salary 315
CHAPTER 108 Straight Commission Plans 319
CHAPTER 109 Profit-Based Commission 321
CHAPTER 110 Salary Plus Commission or Bonus 323
CHAPTER 111 Salary Plus Commission and Bonus 327
CHAPTER 112 Commission Plus Bonus 329
CHAPTER 113 Team Selling Compensation 331
About the Author 335
Index 337