| There exist many definitions of marketing, in fact, | | | | mind can all be considered the benchmarks for |
| too many. Together with the progression of the | | | | testing marketing success of an enterprise. |
| Internet, and consequently the development of new | | | | Marketing effectiveness that results in businesses |
| marketing techniques, technologies and stratagem, | | | | achieving its sales targets, enhanced profits and |
| new definitions of marketing are appearing in large | | | | increased bottom line performance is determined by |
| numbers. However plural and diverse the definitions | | | | both quantified and non-quantified metrics. The |
| of marketing may be, the essence of the said | | | | concept of singling out certain metrics when analyzing |
| remains intact. Marketing is still no doubt the unique | | | | the efficiency of marketing policy and performance |
| function of the business enterprise and no | | | | has been adopted by many and continues to evolve. |
| prosperous business is possible nowadays without | | | | Making marketing more accountable is an opportunity |
| effective marketing. | | | | to put the effectiveness of your marketing |
| Most businesses believe that marketing effectiveness | | | | performance to test. The elaboration of modus |
| is expressed solely in numbers. Apparently, there are | | | | operandi for measuring marketing performance has |
| aspects (metrics) of marketing effectiveness that | | | | become a hot issue in today's marketing discussions. |
| can be quantified and measured. The first and | | | | There are two parties concerned that are interested |
| foremost goal of marketing is to create customers. | | | | more than others in the solution of the issue. The |
| Consequently, the effectiveness of this aspect of | | | | first party represented by chief executive officers, |
| marketing can be evaluated by the number of new | | | | chief financial officers and board directors want to |
| customers, new leads of a company or, in case of | | | | know that investment into marketing brings profit. |
| telemarketing, the number of completed calls. | | | | Marketers that make the second party want to |
| Another significant metric of effectiveness is the | | | | proof the same. |
| number of new products purchased by existing | | | | The solution of the problem took the form and |
| customers since the objective of any enterprise that | | | | shape of a scorecard, no surprise. Thus, marketing is |
| intends to stay competitive in the market is not only | | | | becoming the last in the list of business functions to |
| to create new customers but to value and retain the | | | | accept scorecards - a concise report featuring a set |
| ones they have already. | | | | of measures that relate to the performance of an |
| Measuring the response is another simple and cogent | | | | enterprise, as a means for measuring marketing |
| way to evaluate marketing activities. By taking the | | | | activities in order to give an all-embracing view of the |
| total cost of a marketing activity (for example, from | | | | performance of the above business department. |
| an advertisement) and dividing it by the total number | | | | The next question that arises here is how many |
| of responses, you determine the cost per response | | | | metrics and which in particular will make a scorecard |
| ratio. This cost per response ratio can help you | | | | comprehensive and all-embracing. Some economists |
| decide if this activity was a success by comparing it | | | | claim that there are over 50 marketing metrics; |
| with other alternative marketing activities. A standard | | | | however, it is clear that not all of them are equally |
| measure of the effectiveness of various marketing | | | | important. A scorecard that is able to accurately |
| activities is marketing ROI (return-on-investment). | | | | diagnose and predict the future of marketing |
| Apart from the above there are aspects of | | | | performance will comprise the fundamental metrics |
| marketing effectiveness that cannot be quantified. | | | | that evaluate only what is really important. |
| Many marketing analysts state that the mission of | | | | The fundamental metrics should include not only |
| marketing is to establish an environment in which the | | | | quantified metrics that are easy to measure (for |
| customer appreciates the benefits of doing business | | | | example, number of new customers, ROI) but also |
| with your firm, to set the stage for making the sale, | | | | non-quantified ones (brand awareness, brand equity) |
| to create the circumstances that make the sale the | | | | since it is the latter which are mostly able to |
| next logical, appropriate step. The uniqueness of a | | | | determine the long-term vitality of a business. Thus, |
| company that sets it apart from the competitors, its | | | | elaboration of a perfect scorecard measuring |
| strong hold on the market place, i.e. the status of a | | | | marketing performance needs certain training. |
| company as the acknowledged leader in the field, the | | | | Surveys show that the ones that already exist may |
| ability to stay at the forefront of the customer's | | | | still need some refinement and updating. |