Marketing Metrics
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Marketing metrics in performance measuring system
Marketing metrics data allows marketers to evaluate their performance against organizational goals (Boundless, 2014). Therefore, there is increased competitive intelligence and an enhanced ability to assess market strengths and weaknesses which enables managers to make calculated budgetary decisions (Boundless, 2014). In designing a performance measurement system for MTS Systems Inc I would consider the following major marketing metrics.
First, I would consider profitability analysis of the company. Walker et al (2011) argue that this is the single most measure of performance by businesses. Businesses are established to make profits as they provide products and services to people (Sampiao et al, 2011). However, this cannot be termed as a long term measure of performance since there so many other factors determining the success of a business venture other than profit making (Bendle, 2010). Profit analysis will help in calculating the return on marketing investment (Boundless, 2014).
Customer satisfaction is a major measure to consider. Without customers, no single venture would stand. Customer satisfaction is the best indicator of a business’ growth (Kumar 2011). An analysis of customer satisfaction will help determine the future market share of a business as well as its profitability (Walker et al, 2011).
A sales analysis is also important to include in a performance system. Such analysis will help find areas of strength and weaknesses (Walker et al, 2011). It will also help to evaluate and control marketing efforts as well as help the management to better formulate objectives and strategies and administer other non-marketing activities (Walker et al, 2011). In doing a sales analysis, it is important to determine what is the perceived product or service quality in the market. This will help evaluate the competitive advantage of the product or service.
References
Bendle, M. (2010). Marketing metrics: the definitive guide to measuring market performance 2nd ed.). Pearson FT Press.
Boundless (2014). Marketing performance metrics. Retrieved: 10th December 2014 https://www.boundless.com/marketing/textbooks/boundless-marketing-textbook/an-overview-of-marketing-1/evalauting-market-performance-23/marketing-performance-metrics-134-7590/
Kumar, V. (2011). Customer relationship management. John Wiley & Sons Ltd.
Sampiao, C. Et al. Industrial marketing management. Elsevier
Walker, O., Orville, et al (2011). Marketing strategy: a decision focused approach (7th ed.). McGraw Hill.