This document discusses measuring marketing productivity. It introduces the chain of marketing productivity, which includes strategies and tactics that set strategic direction and create differentiated brands. Differentiated brands can charge higher prices, attain greater market shares, and are more responsive to advertising. The chain also includes customer impact, marketing assets like brand equity, market impact in both long and short term, financial impact through ROI, and impact on firm value. It provides examples of measuring productivity through sales numbers, customer surveys, and website analytics.

1. Measuring marketing
productivities
Prepared by: Sivozhelezov P.A.
Supervisor: Ivashkova N.I.
International Business School

2. Contents
 Introduction
 The Chain of Marketing Productivity
 Elements of the chain
 Practical examples
 Sources

3. Introduction
 Lack of accountability undermines marketers’
credibility
 Effective measurement of MP is essential for
establishing key role of marketing within the firm
 Further research is subject essential

4. The Chain of MP

5. Strategies and tactics
 Setting strategic direction for the firm
 Concept of Marketing Investment
 Creation of a ‘Differentiated brand’

6. Differentiated Brand
 Charge higher prices
 Attain greater market shares
 DB are more responsive to advertising and promotion
 DB have lower selling costs

7. Customer impact
 Marketing actions influence customer loyalty,
satisfaction, preference and purchase intention

8. Marketing Assets
 Brand equity - the differential effect that brand
knowledge has on consumer or customer response to
the marketing of that brand
Keller, 2002
 Financial World and Interbrand
 Apple($98,3b) and Google($93,2b)

9. Market Impact
 Long-term impact vs. Short term impact
 Sales promotion(ST)
 Service quality improvements & Advertising(LT)

10. Financial impact
 Marketing expenditures are considered investments
 ROI

11. Impact on the value of the
firm
 Brand extension announcements lead to abnormal
ROS
 Brand equity reduces financial risk and related to
lower cost of capital and thus to higher market
capitalization

12. Practical examples
 Watch the sales numbers before, during and after
each campaign

13. Practical examples
 Using customer surveys

14. Practical examples
 Monitoring website analytics