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Unformatted text preview: 10/6/2011 1 Monitoring Marketing Performance: Monitoring Marketing Performance: Brand Scorecard Taewon Suh, PhD The premise The premise • A business function should be accountable. • A core activity of marketing research is to monitor marketing performance. • What should we measure? • Not concerned with departmental performance nor with the productivity of a particular activity • Universal: “meeting needs profitably” (Kotler and Keller 2006) To improve shareholder value is the ultimate purpose of marketing? • Silver metric • ROI: return on (marketing) investment • DCF: discounted cash flow – customer equity, customer lifetime value • ROC: return on customer Financial measures do not satisfactorily deal with the marketing assets • The bottom line for marketing performance should be the net profit or cash flow in the period attributable to marketing plus the improvement in brand equity. The multiple metric approach The multiple metric approach • The chain of effects: Inputs b intermediate variables b behavioral variables b financial metrics • The key is to see brand equity as a present asset which can be measured using past experience and current knowledge. • A proxy for future net cash flows Ant Colonies? Ant Colonies? 10/6/2011 2 Key Performance Indicators Key Performance Indicators • Quantifiable statistics that executives and managers use to see how the business is doing....
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This note was uploaded on 01/18/2012 for the course MKT 3370 taught by Professor Staff during the Spring '09 term at Texas State.
- Spring '09