Your Definitive, Up-to-Date Guide to Marketing Metrics-Choosing Them, Implementing Them, Applying Them

This award-winning guide will help you accurately quantify the performance of all your marketing investments, increase marketing ROI, and grow profits. Four renowned experts help you apply today's best practices for assessing everything from brand equity to social media, email performance, and rich media interaction.

This updated edition shows how to measure costly sponsorships, explores links between marketing and financial metrics for current and aspiring C-suite decision-makers; presents better ways to measure omnichannel marketing activities; and includes a new section on accountability and standardization in marketing measurement. As in their best-selling previous editions, the authors present pros, cons, and practical guidance for every technique they cover.

• Measure promotions, advertising, distribution, customer perceptions, competitor power, margins, pricing, product portfolios, salesforces, and more
• Apply web, online, social, and mobile metrics more effectively
• Build models to optimize planning and decision-making
• Attribute purchase decisions when multiple channels interact
• Understand the links between search and distribution, and use new online distribution metrics
• Evaluate marketing's impact on a publicly traded firm's financial objectives

Whatever your marketing role, Marketing Metrics will help you choose the right metrics for every

task-and capture data that's valid, reliable, and actionable.

Neil T. Bendle is an Associate Professor of Marketing at the Terry College of Business, University of Georgia. He holds a PhD from the Carlson School of Management, University of Minnesota, and an MBA from Darden. He has been published in journals such as Marketing Science, MIT Sloan Management Review, Management Science, and the Journal of Consumer Research. He has experience in marketing management, consulting, business systems improvement, and financial management. He was Director of Finance of the British Labour Party before entering academia.

Paul W. Farris is Landmark Communications Professor Emeritus of the Darden Graduate Business School, University of Virginia. Previously he was on the faculty of the Harvard Business School and worked in marketing management for Unilever. Professor Farris's research has produced award-winning articles on retail power, the measurement of advertising effects, and marketing budgeting. He has published many articles in journals such as the Harvard Business Review, Journal of Marketing, Journal of Advertising Research, and Marketing Science. He is currently developing improved techniques for integrating marketing and financial metrics and is coauthor of several books, including The Profit Impact of Marketing Strategy Project: Retrospect and Prospects. Farris's consulting clients have ranged from Apple and IBM to Procter & Gamble and Unilever. He has also served on boards of manufacturers and retailers and as an academic trustee of the Marketing Science Institute.

Phillip E. Pfeifer, Richard S. Reynolds Professor Emeritus of Business Administration at the Darden Graduate Business School, specializes in direct/interactive marketing. He has published a popular MBA textbook and more than 40 refereed articles in journals such as the Journal of Interactive Marketing, Journal of Database Marketing, Decision Sciences, and the Journal of Forecasting. In addition to writing academic articles and a textbook, Mr. Pfeifer was a prolific case writer, having been recognized in 2004 as the Darden School's faculty leader in terms of external case sales and in 2008 with a Wachovia Award for Distinguished Case Writer. His teaching has won student awards and has been recognized in Business Week's "Guide to the Best Business Schools."

Dr. David J. Reibstein is the William S. Woodside Professor and Professor of Marketing at the Wharton School, University of Pennsylvania. Dave has been on the Wharton faculty for more than two decades. He was the Vice Dean of the Wharton School and Director of the Wharton Graduate Division. In 1999-2001, Dave took a leave of absence from academia to serve as the Executive Director of the Marketing Science Institute. He previously taught at Harvard and was a Visiting Professor at Stanford, INSEAD, and ISB (in India). Dave was the Chairman of the American Marketing Association. He was the host of a radio show, "Measured Thoughts with Dave Reibstein," on SiriusXM Radio. He has more than 50 articles published in top journals and has consulted and/or presented in more than 30 countries. He has presented his research at the World Economic Forum in Davos, Switzerland.

Foreword xvii

Foreword to the Fourth Edition xix

Chapter 1: Introduction 1

1.1 What Is a Metric? 1

1.2 Why Do You Need Metrics? 1

1.3 Marketing Metrics: Opportunities, Performance, and Accountability 2

1.4 Choosing the Right Numbers 3

1.5 What Are We Measuring? 3

1.6 Value of Information 5

1.7 Mastering Metrics 7

1.8 Where Are the "Top Ten" Metrics? 7

1.9 What Is New in the Fourth Edition? 9

1.10 New Developments in the World of Marketing Metrics 10

Chapter 2: Share of Hearts, Minds, and Markets 19

Introduction 19

2.1 Market Share 24

2.2 Relative Market Share and Market Concentration 27

2.3 Brand Development Index and Category Development Index 31

2.4 Penetration 33

2.5 Share of Requirements 36

2.6 Usage Index 40

2.7 Awareness, Attitudes, and Usage (AAU): Metrics of the Hierarchy of Effects 44

2.8 Customer Satisfaction and Willingness to Recommend 49

2.9 Net Promoter 53

2.10 Willingness to Search 55

2.11 Neuroscience Measures 57

Chapter 3: Margins and Profits 67

Introduction 67

3.1 Margins 71

3.2 Prices and Channel Margins 77

3.3 Average Price per Unit and Price per Statistical Unit 87

3.4 Variable Costs and Fixed Costs 93

3.5 Marketing Spending-Total, Fixed, and Variable 99

3.6 Break-Even Analysis and Contribution Analysis 104

3.7 Profit-Based Sales Targets 108

Chapter 4: Product and Portfolio Management 113

Introduction 113

4.1 Trial, Repeat, Penetration, and Volume Projections 116

4.2 Growth: Percentage and CAGR 129

4.3 Cannibalization Rates and Fair Share Draw 134

4.4 Brand Equity Metrics 140

4.5 Conjoint Utilities and Consumer Preference 149

4.6 Segmentation Using Conjoint Utilities 154

4.7 Conjoint Utilities and Volume Projection 157

Chapter 5: Cus…