Implement, monitor and control marketing dept. value add / efforts

1. Marketing - Performance & Profitability Implement, monitor and control marketing dept. value add / efforts Anand Subramaniam

4. Marketing - Performance Overview

5. Marketing Performance – Shareholder Value Marketing Performance Customer Satisfaction Financial Performance Share-holder Value

7. Measuring Marketing Productivity Productivity Marketing metrics to assess marketing efforts Marketers are held accountable for their investments and have to justify marketing expenditures to senior management Marketing research can help address the need for accountability Marketing mix modeling to estimate causal relationships and how marketing activities affects outcomes

8. Marketing Metrics Metrics Can be used by brand managers to design marketing programs A set of measures that help org. to quantify, compare, and interpret marketing performance Relate to customer-level concerns such as their attitudes and behavior Can be used by senior managers to decide on financial / budget allocations Relate to brand-level concerns such as market share, relative price premium, or profitability

9. Marketing - Performance & Metrics

12. Marketing Strategies to Improve Profitability Marketing Profitability = Net Marketing Contribution (NMC) NMC = Sales Revenue x % Gross Profit – Marketing Expense Net Market Contribution = Market Demand X Average Selling Price X Channel Discount - Marketing Budget Percent Margin X Marketing Share X Strategies to grow market demand Strategies to increase profit margin Strategies to increase avg. selling price Strategies to grow market share Strategies to lower channel cost Strategies to improve marketing Efficiency

13. Marketing – Financial Metrics Cost of Goods Sold (COGS) (% Sales) Marketing & Sales Expenses (% Sales) Overhead Expenses (% Sales) Return on Sales Return on Assets Return on Capital Asset Turnover Accounts Receivable (Days) Inventory (Days) Cost Metrics Profit Metrics Asset Metrics

14. Marketing – Metrics Customer Satisfaction Customer Retention Sales Growth Market Growth Market Share Relative Product Performance Relative Service Performance Relative Customer Value Customer Metrics Market Metrics Competitive Metrics

16. Measure Marketing Plan and Performance

17. Marketing Plan Performance Variance Analysis Financial / Profit Analysis Sales Analysis Market Share Analysis Market’g Expense to Sales Analysis

23. Return on Net Worth

26. Customer Performance Scorecard % of win-back customers to average # % of new customers to avg. # of customers % of target market members with brand recall % of lost customers to average # % of customers who would repurchase % of customers in various levels of satisfaction Scorecard # of customer won and lost in each market % of customers who say brand is most preferred