Examples of key performance indicators in the following topics:
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- KPIs, ROMI, and Accountable Marketing are all metrics that are used to track marketing performance.
- Organizations use various methods to evaluate marketing key performance indicators (KPIs) or metrics.
- Marketing Performance Measurement, Marketing Performance Management, Marketing Return on Investment (ROI), Return on Marketing Investment (ROMI), and Accountable Marketing are all metrics that companies use to connect marketing performance to the financial performance of the organization.
- To ensure meaningful comparisons among activities, brands, markets, and time periods, organizations may employ a common scale to analyze performance metrics.
- Using an established methodology to evaluate marketing effectiveness helps companies accurately measure performance and assess business needs.
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- Evaluating marketing performance guides future marketing initiatives and helps a company achieve its goals.
- Ideally, marketing performance measurement should be a logical extension of the planning and budgeting exercise that happens before a company's fiscal year.
- Companies employ various methodologies to measure marketing performance and ensure they meet those performance goals.
- Marketing performance metrics or key performance indicators (KPIs) are useful not only for marketing professionals, but also for non-marketing executives.
- Evaluating marketing performance helps companies plan and budget for the following fiscal year.
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- Continuous monitoring of performance against predetermined targets is of utmost importance.
- The most important elements of marketing performance which are normally tracked include:
- Key ratios include gross contribution to net profit, gross profit to return on investment, and net contribution to profit on sales.
- The above performance analyses concentrate on quantitative measures directly related to short-term performance.
- However, there are a number of indirect measures tracking customer attitudes which can also indicate the organization's performance over a longer period of time.
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- One of the key inputs to achieving sustainable competitive advantage is long-term customer satisfaction excellence (i.e., being excellent in the eyes of your customers).
- Performance figures can be tracked directly or indirectly.
- Indirectly tracking customer satisfaction can indicate the organization's long-term marketing performance.
- Questionnaires - Distribute one-page questionnaires that ask key questions like: What do you like/dislike?
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- Market share is an important indicator of the strength of a business in it's industry, even though there is no standard way to measure it.
- The main advantage of using market share as a measure of business performance is that it is less dependent upon macro-environmental variables, such as the state of the economy or changes in tax policy.
- Market share is a key indicator of market competitiveness—that is, how well a firm is doing against its competitors.
- A market share of over 35% but less than 60% is an indicator of market strength but not necessarily dominance.
- Decreases in the Herfindahl index indicate a loss of pricing power and an increase in competition, and vice versa.
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- Nonetheless, closing is a key part of the sales process.
- Certainly, other factors are considered in evaluating performance, but the bottom line for most salespeople is their ability to consistently produce profitable sales volume.
- Individuals who perform as salespeople occupy a unique role: they are the only individuals in their companies who bring revenue into the company.
- Situations where a closing attempt is logical include: when a presentation has been completed without any objectives from the prospect, when the presentation has been completed and all objections and questions have been answered, and when the buyer indicates an interest in the product by giving a closing signal, such as a nod of the head.
- Signing a contract indicates a commitment to buy, so the salesperson is said to have "closed
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- This strategy means that the organization uses price as an indicator or baseline.
- The keys to implementing a strategy of meeting competitive prices are an accurate definition of competition and a knowledge of competitor's prices.
- The key is to prove to customers that your product justifies a premium price.
- For example, if a firm could replace its sales force in the field with telemarketing or online access, this function might be performed at a lower cost.
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- Market share is a key indicator of market competitiveness—that is, how well a firm is doing compared to its competitors.
- Similarly, within a firm's product line, market share trends for individual products are considered early indicators of future opportunities or problems.
- The main advantage of using market share as a measure of business performance is that it is less dependent upon macro environmental variables such as the state of the economy or changes in tax policy.
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- Measuring the performance of the sales force within a company is vital to ensuring its success.
- This can be done through conducting performance appraisals and offering feedback.
- One key item that is often forgotten during the appraisal process (by managers and employees alike) is that the appraisal is for improvement, not blame.
- Performing an appraisal can be nerve racking for both parties if the situation is not handled correctly.
- Constant fine tuning of performance can be much more effective than annual overhauls.
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- Market share is key metric that helps firms evaluate demand in their market and can be influenced by PR and marketing campaigns.
- Market share is a key indicator of market competitiveness—that is, how well a firm is doing against its competitors.
- Similarly, within a firm's product line, market share trends for individual products are considered early indicators of future opportunities or problems.
- Discuss how companies use market share as a key indicator and tool to increase market competitiveness