GRADUATE SCHOOL OF MANAGEMENT
ST. PETERSBURG STATE UNIVERSITY
Course Outline
Marketing metrics
Professor: Svetlanova Zhanna Vyacheslavovna, Ph.D., senior lecturer, svetlanova@som.pu.ru
Specialist Program in Marketing, Autumn Semester 2008/2009 Academic Year
Course Summary
This is a 5th year Specialist Program course
Course Prerequisites: Marketing
Course Layout: lectures, hands-on training sessions, assignments, project.
General Course Goals and Objectives
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to provide students with a comprehensive overview of commonly used marketing metrics and situations of
their use;
to provide students with skills of marketing metrics calculation
to explain how to justify the marketing strategy, tactics and outcomes with numbers; how to design
appropriate marketing metrics with appropriate calculation formulae; how to use marketing metrics within a
‘Marketing Performance Measurement System’
to consider common performance measurement frameworks (such as the ‘Balanced Scorecard’)
to provide with skills of measurement of the efficiency and effectiveness of strategic and tactical marketing
activities
to explain how to develop marketing plans with the emphasis on implementation, evaluation and control
Topics Covered
Topic 1. The goals of marketing metrics calculations
Topic 2. Margin and profit
Topic 3. Metrics related to market
Topic 4. Metrics related to customers
Topic 5. Metrics in product management
Topic 6. Metrics in sales and channel management
Topic 7. Metrics in pricing
Topic 8. Metrics in promotion
Topic 9. Marketing productivity
Outline of Overall Course Structure
Topic 1. The goals of marketing metrics calculations
Session 1 (2 hours)
Pre-Course
Assignment
Date
Time
Classroom
Reading Assignment for Session 1:
 Hauser, J., Katz, G. Metrics: you are what you measure //
European management journal, Vol. 16, No.5, pp. 517-528
 Brady, D. et al. Making marketing measure up // Business week,
Dec 13, 2004, pp. 112-113
Issues covered:
 What is a metric
 Why to use marketing metrics
 Structure of marketing metrics
 'SMART' quantitative marketing mix objectives, metrics and
controls
 Marketing metrics and Marketing Performance Measurement
System
Intended learning outcomes: After this session you should be able to…
 Understand the importance of marketing metrics and their place
in marketing
 Learn the main groups of marketing metrics
Assignment for Session 2:
Reading Assignment:
 Little, J.D.C. Models and managers: the concept of a decision
calculus // Management science, 16, No. 8, pp. 466-484
 Sheth, J.N., Sisodia, R.S. Marketing productivity issues and
analysis // Journal of Business Research, 55, pp. 349-362
Topic 2. Margin and profit
Session 2 (4 hours)
Date
Time
Classroom
Issues covered:
 Unit margin
 Margin (%)
 Channel margins
 Average price per unit
 Price per statistical unit
 Variable and fixed costs
 Marketing spending
 Contribution per unit
 Contribution margin (%)
 Break-even sales
 Target volume
 Target revenues
Intended learning outcomes: After this session you should be able to…
 Calculate these metrics
Assignment for Session 3:
 Tasks and exercises
Topic 3. Metrics related to market
Session 3 (4 hours)
Date
Time
Classroom
Issues covered:
 Market share
 Unit share
 Relative market share
 Brand development index
 Category development index
 Market penetration
 Brand penetration
 Penetration share
 Share of requirements
Intended learning outcomes: After this session you should be able to…
 Calculate these metrics
Assignment for Session 4:
 Tasks and exercises
Topic 4. Metrics related to customers
Session 4 (6 hours)
Date
Time
Classroom
Issues covered:
 Heavy usage index
 Awareness
 Top of mind
 Ad awareness
 Knowledge
 Beliefs
 Intentions
 Purchase habits
 Loyalty
 Likeability
 Willingness to recommend
 Customer satisfaction
 Willingness to search
 Retention rate
 Customer profit
 Customer lifetime value
 Prospect lifetime value
 Average acquisition cost
 Average retention cost
Intended learning outcomes: After this session you should be able to…
 Calculate these metrics
Assignment for Session 5:
 Tasks and exercises
Topic 5. Metrics in product management
Session 5 (6 hours)
Date
Time
Classroom
Issues covered:
 Trial
 Repeat volume
 Penetration
 Volume projections
 Growth
 Cannibalization rate
 Brand equity metrics
 Conjoint utilities
 Segment utilities
 Volume projections
Intended learning outcomes: After this session you should be able to…
 Calculate these metrics
Assignment for Session 6:
 Tasks and exercises
Topic 6. Metrics in sales and channel management
Session 6 (6 hours)
Date
Time
Classroom
Issues covered:
 Workload
 Sales potential forecast
 Sales total
 Sales force effectiveness
 Compensation
 Break-even number of employees
 Sales funnel, sales pipeline
 Numeric distribution
 All commodity volume
 Product category volume
 Total distribution
 Facings
 Out of stock
 Inventories
 Markdowns
 Direct product profitability
 Gross margin return on inventory investment
Intended learning outcomes: After this session you should be able to…
 Calculate these metrics
Assignment for Session 7:
 Tasks and exercises
Topic 7. Metrics in pricing
Session 7 (4 hours)
Date
Time
Classroom
Issues covered:
 Price premium
 Reservation price
 Percent good value
 Price elasticity of demand
 Optimal price
 Residual elasticity
 Price waterfall
Intended learning outcomes: After this session you should be able to…
 Calculate these metrics
Assignment for Session 8:
 Tasks and exercises
Topic 8. Metrics in promotion
Session 8 (6 hours)
Date
Time
Classroom
Issues covered:
 Baseline sales
 Incremental sales
 Promotion lift
 Redemption rates
 Costs for coupons and rebates
 Percentage sales with coupon
 Percent sales on deal
 Percent time on deal
 Average deal depth
 Pass-through
 Impressions
 Gross rating points
 Cost per thousand impressions
 Net reach
 Average frequency
 Frequency response
 Effective reach
 Effective frequency
 Share of voice
 Web metrics
Intended learning outcomes: After this session you should be able to…
 Calculate these metrics
Assignment for Session 8:
 Tasks and exercises
Topic 9. Marketing productivity
Session 9 (4 hours)
Date
Time
Classroom
Session 10 (4 hours)
Date
Time
Issues covered:
 Net profit
 ROS
 ROI
 ROMI
 EVA
 Payback
 NPV
 IRR
Intended learning outcomes: After this session you should be able to…
 Calculate these metrics
Assignment:
 Tasks and exercises
 Project
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Project presentations (on the base of the cases)
Classroom
Tutorials:
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Name of professor, day of week, hours, room number
General Course Requirements
(In this section, you should list important dates: deadlines for graded assignments, projects etc.)
Mid-term exam:
Date, time, room
Pre-examination tutorial:
Date, time, room
Final exam (test)
Date, time, room
Final exam results:
Date, time, room
Deadlines for submitting
assignments (exercises, projects, During tutorials, hands-on training sessions or other due dates
presentations etc)
Assessment output
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Midterm assessment, fulfillment of tasks, project
Final assessment (exam)
Grading requirements (50% exam, 20% home tasks and project, 15% class work, 15%
midterm assessment)
Basic Reading
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Marketing metrics : 50+ metrics every executive should master/ Paul W. Farris [et al.]. Upper Saddle River, NJ: Wharton School, 2006
Ward K. Marketing finance : turning marketing strategies into shareholder value/ Keith
Ward. -Amsterdam: Elsevier Butterworth-Heinemann, 2004
Best, R.J. Market-based management / Roger J. Best. – 5th edition.
Supplementary Reading
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Brady, D. et al. Making marketing measure up // Business week, Dec 13, 2004, pp. 112-113
Hauser, J., Katz, G. Metrics: you are what you measure // European management journal,
Vol. 16, No.5, pp. 517-528
Little, J.D.C. Models and managers: the concept of a decision calculus // Management
science, 16, No. 8, pp. 466-484
Sheth, J.N., Sisodia, R.S. Marketing productivity issues and analysis // Journal of Business
Research, 55, pp. 349-362
Амблер Т. Маркетинг и финансовый результат: новые метрики богатства
корпорации : [пер. с англ.]/ Тим Амблер. - Москва: Финансы и статистика, 2003
Фелпс Б.Умные бизнес-показатели : система измерений эффективности как важный
элемент менеджмента : пер. с англ./ Боб Фелпс. -Днепропетровск: Баланс Бизнес
Букс, 2004