Marketing Planning and Practice

Marketing Planning and Practice
UMKDQD-15-2

Week 7 Lecture 7.1
Presented by
Michelle Jackson
Module Leader
w/c 22 March 2021

The Plan for This Week
The lectures will explore measurement and why this is crucial to the marketing plan
The webinar will explain measurement further, particularly digital measures
This weeks tutorial is an opportunity for you to give use some feedback as part of a mid-module review. Also cover use of appendices.

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Measuring a Plan
The reason for planning is to help the organisation maximise the value created from the available resources
Measures of efficiency – how well are you doing things?
Measures of effectiveness – are you doing the right things?
Is the measure suitable for the required purpose?

Measurement of performance can be a challenging area. It is easy for measurements to be viewed as checking up on individuals and not uncommon for managers to measure because it is expected rather than because the data and information generated will be useful to them.

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What Get Measured Gets Done
If you can measure it – you can manage it
Set goals and measure performance against that goal – hard data that shows us what we did or didn’t achieve
What do you want to know before you start measuring?

It’s an old cliché: “What gets measured gets done.” (Tapinos et al 2005, p. 191)
The origin of the statement is up for debate (possibly dating back to the 1500s), and it seems that the original phrase was actually “If you can measure it, you can manage it.”
When we set goals and measure performance against that goal we have the ability to hold ourselves (and others) accountable for the resulting success or failure. We actually have concrete data that shows us what we did or didn’t do, what the impact was, and what we need to do differently.
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Measurement
A measure is a quantitative number that counts something
the organisation made £1m sales revenue in the last 6 months of the FY
A metric gives more information as it compares the measure to another baseline
the organisation made £1m sales revenue, £100k more than the first 6 months of the FY
Assess the importance, effect or value of marketing actions

With pressure on margins in today’s highly competitive markets, there is a greater need to ensure resources are working hard to deliver objectives. Marketers generally have a poor track record in the area of measurement and metrics and are conflicted when asked to measure the impact of spending and decisions.
In the past, marketers were asked to demonstrate how tactical spending impacted on sales. In advertising, this was not possible because the purpose of an ad was to deliver brand awareness and only indirectly influence sales. Today it is recognised that an integrated campaign is needed to take prospective customers from unaware to sale and that a campaign will integrate on and offline communication tactics and media and sales impact will be assessed against the resources invested in the whole campaign not isolated tactics.
Individual tactical elements can be assessed and reviewed, but must be judged in the context of their role in the decision-making process.
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Measurement
Traditionally measurements were financial (ROI, profitability)
Objectives are the starting point of control – depends on clear, quantified objectives
We can only assess our success through measurement. Without metrics you have no way of knowing what is and isn’t working – and have little chance of learning and improving your performance.

When selecting performance measures the following should be considered:
Is the measure acceptable to key functions and stakeholders?
Is it feasible, given the resource constraints?
Can the measure be used for benchmarking?
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The Balanced Scorecard
Balanced scorecards and dashboards are simply a device for aligning and reporting key metrics and performance indicators
If you consider that a successful business needs to have satisfied customers and that to deliver customer satisfaction you need motivated and engaged staff, then you can see the logic behind lead (input indicators) and lag (output indicators).

They created the Balanced Scorecard to try and help organisations. Care is needed here to ensure what is measured is beneficial.
If you monitor staff metrics, any deterioration will warn you that in the future customer experience and satisfaction levels could be expected to fall and over time, so that customers may choose other suppliers and buy less from you.
Individual metrics are indicators only. They need to be reviewed in a wider context before you draw too many conclusions. For example, a sudden spike in staff absence may be the result of a flu epidemic not a disengaged workforce.
As a marketer, it is worth setting up your dashboard of metrics and monitor changes in them. These metrics are simple numbers; e.g. average customer spend is £180 or average staff absence was 4.5 days. By combining numbers and working with ratios, you will have much stronger control measures.
The balanced scorecard was devised by Kaplan and Norton in 1992. A mixture of financial and non-financial measures. A limited number of measures. Measures chosen to relate to specific strategic goals – usually documented in tables with one or more measure associated with each goal. Measures should gain the endorsement of senior managers of the organisation.

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Net Promoter Score
Net Promoter Score is a customer loyalty metric based on a direct question: 
How likely are you to recommend our company/product/service to your friends and colleagues?
Scored on a 0 to 10 scale. The higher the score the more promising for growth.
Responses are divided into passives, detractors and promoters. The NPS score is the result of subtracting the number of detractors from the promoters.

The scoring for this answer is most often based on a 0 to 10 scale.
It has its critics and is not equally useful in all sectors but again monitoring changes in NPS can be a useful warning that there are changes in the customer experience.

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Web Analytics
E-commerce websites – measure sales (transactions)
Web analytics can’t tell us ‘why?’
Google Analytics reporting is focused around something called the ABC model – Acquisition, Behaviour and Conversion.
In 2018 Google Analytics is the most widely installed web analytics package in the world – a market share of 86% and 56% of all websites use Google Analytics with 35% of websites not using anything!
(Source: w3techs.com)

Web analytics is about the collection, processing and reporting of visitors to a website and their subsequent interactions with its content.
Google Analytics might tell you that your Contact Us page has an 80% bounce rate – meaning 80% of the visits from visitors leave after arriving to the page.  However, Google Analytics won’t be able to tell you why they do that.
When we talk web analytics we could talk google analytics.
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