Planning Metrics & Implementation
Control
MKT 460 (Strategic Marketing)
Taufique Hossain
Tools for measuring marketing
progress
 Metrics: Used to establish measures for specific
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performance-related outcomes and
activities and then track results against measures
Forecasts: Used to predict future sales and costs as
checkpoints for measuring progress
Budgets: Used to allocate funding across programs in
specified periods and then track expenditures during
implementation
Schedules: Used to plan and coordinate the timing of tasks
and programs
Planning metrics
Sales force
Logistics
Promotions
Channel
management
& sales force
Customer
Customers profitability
and market
research
Product &
portfolio
management
Pricing
strategy
The trade
Advertising
media and
web metrics
Advertising
agency
Marketing &
finance
Finance
Share of
hearts,
minds and
markets
Margins &
profits
Operations
Planning metrics
 Marketing dashboard: A computerized, graphical or
digital presentation that helps management track important
metrics overtime and spot deviation from the plan.
Identifying metrics
 Marketing:
 To acquire new customers: Measure number or percentage of new customers
acquired by month, quarter, and year.
 To retain current customers: Measure number or percentage of customers
who continue purchasing during a set period.
 To increase market share: Measure dollar or unit sales divided by total
industry sales during a set period.
 Financial:
 To improve profitability: Measure gross or net margin for a set period by
product, line, channel, marketing program, or customer.
 To reach breakeven: Measure the number of weeks or months until a
product’s revenue equals and begins to exceed costs.
 Societal:
 To make products more environmentally friendly: Measure the proportion of
each products parts that are recyclable or have been recycled during a set
period.
 To build awareness of a social issue: Research awareness among the target
audience after the program or a set period.
Identifying metrics
 Customer becomes aware of an offering: Measure customer awareness of
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offering and competing offers by segment.
Customer learns more about an offering: Measure number of
information packets or catalogs requested, number of hits on Web site or
YouTube video, number of people who visit store or showroom
Customer has a positive attitude toward the offering: Measure
customer attitudes towards the offer and competing offers, by segment;
feedback from hotlines, blogs, letters, e-mails, channel, etc.
Customer tries the offering: Measure number of people who receive free
samples or redeem coupons for trials.
Customer buys the offering: Measure sales by transaction. segment.
channel, payment method; conversion from trials and information requests.
Customer is satisfied: Measure customer satisfaction by offering and by
segment; satisfaction feedback from hotlines, blogs. letters. meets. e-mails,
channel, etc.
Customer becomes loyal: Measure customer retention and churn; size and
frequency of repeat purchases; utilization of frequent buyer program
Using metrics
 Expected outcomes
 Historical results
 Competitive or industry outcomes
 Environmental influences
Return on investment in marketing (ROMI) = Net profit
attributed to marketing activity/Marketing investment
Forecasting sales & costs
 Forecast
Types of forecasts:
 Forecast of market and segment sales
 Forecasts of company product sales
 Forecast of cost of sales
 Forecast of sales and costs by channel
Sources and tools for forecasting data
 Regression analysis
 Econometrics model
 Time series method
 Smoothing and decomposition
 Judgmental method
 Sales force estimates
 Executive opinion
 Delphi method
 Online prediction markets
Sources and tools for forecasting data
 Sales force estimates: Composite projection based on estimates
made by sales personnel convenient but accuracy depends on instincts,
experience, and objectivity of salespeople.
 Executive opinion: Composite projection based on estimates made
by managers; convenient but accuracy depends on instincts,
experience, and objectivity of managers
 Delphi method: Composite projection based on successive rounds
of input from outside experts, who ultimately come to consensus on
estimates; time consuming but sometimes helpful when forecasting
new-product or new-market sales.
 Online prediction market: Composite projection based on
combined judgment of employees or stakeholders who indicate their
confidence in certain marketing predictions through online “trading” in
a mock stock market; efficient but may involve bias toward longerterm predictions.
Budgeting
 Affordable budgeting
 Percentage of sales budgeting
 Competitive parity budgeting
 Objective and task budgeting method
Budgets within marketing budget
 Budgeting for each marketing-mix program
 Budget for each brand, segment or market
 Budgets for each region of geographic division
 Budgets for each division or product manager
 Budget summarizing overall marketing
Controlling marketing plan implementation
 Annual plan control
 Profitability control
 Productivity control
 Strategic control
Planning metrics and implementing control
 Scheduling marketing Plan Programs
 Applying Control
 Preparing contingency plans