Marketing Metrics

Marekting metrics are very valuable to a marketing manager. These metrics help to evaluate a marketing strategy. The follwing list is what I think are good measuring tools for analysis, but do not limit yourself to these alone! Everyone has different analysis techniques, just make sure whatever you are analyzing will give effective and knowledgable results.

Market Share - Share Position
When a company has a product within a market, competitors will battle for a position among that market with them. One way to measure your effectiveness in marketing is to look at your brand's share within the market. This means what percentage of the market that you alone own as compared with other competitors. A higher share means higher sales and profits. Knowing where you are in market share and where other competitors lie will help make decisions in terms of promotion, advertising, and pricing.

Brand Awareness
This metric is the extent to which a brand is recognized by its potential customers. Brand awareness is the primary goal of a product's early months of introduction to the market. This numebr is a percentage of the target market. Correct analysis of brand awareness can allow a company to efficiently increase/decrease in areas they see effective.

Profitability - Net Income
This metric is pretty simple and self-explanatory. Monitoring one's profits, whcih can be analyzed through net income, allows to see how successful a product is doing sales-wise. Having great sales and low costs creates good profit for a company.

Price
Price can go many ways. There are several pricing strategies that will help drive a product in a certian direction. Choosing an effective strategy is key. Knowing what competition prices their products at will also give a better of idea at how consumers think about pricing and can allow you to make better pricing decisions off of those strengths or weaknesses analyzed.

Marketing Efficiency Index (MEI)
Essentially, the Marketing Efficiency Index is calculated by dividing the net income by marketing expenditures. An MEI of 1 shows that for every $1 a company spends, it is making $1 off of that dollar in net income. An MEI of 2 means it is making $2 off of every $1 spent. The MEI is helpful in planning pricing and budget allocation on marketing and other cost areas.

Units Sold
Units sold allows a company to see their progress in many areas. Marketing, price effectiveness, income/profitability are all areas affected by units sold. How well you are doing will either show that the product is selling well among consumers or not selling as planned. Units sold can also be compared between competition and allow a company to see where it is among success in the market.

All of these metrics, among others, are essential in allowing better decisions in marketing strategy.