MPM in Decision Making

Question 1

Chain of Marketing Productivity

Answer 1

To understand where you are currently and where you are likely to be in the future, you need to use indicators from each individual category
Strategies
Customer impact/ marketing assets
Market position
Financial position
Value of firm
Metrics are complimentary and value comes through a causal chain.
Metrics can be measured at the marketing (ad campaign effect on sales) or firm (realtionship between brand equity and overall profit margin

Question 2

ROMI

Answer 2

At what rate spending on marketing contributes to profits
incremental financial value created by marketing- cost of marketing/ cost of marketing

• return and costs difficult to calculate
• only applicable at the level of the project
• shifting funds

Question 3

Financial metric

Answer 3

Backwards looking: LTM effect is not clear from financial implications: once the environment changes you cant extrapolate
Readily available
Easy to communicate in the boardroom

Question 4

Marketing metrics

Answer 4

Not accepted in the boardroom unless linked to financials
Forwards looking
Closer to the customer
Allows faster adjustment

Question 5

Market Share

Answer 5

Key indicator of how competitive a company is
unit sales/ market unit sales or rev
but a firms market share can increase whilst market decreasing
trade off with profitability- sacrifice profit by lowering prices