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Marketing Metrics: 50+ Metrics Every Executive Should Master

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When companies talk about marketing these days, they are talking about things like promotional strategy, advertising, and distribution; customer perception; market share; competitors' power; margins and pricing; products and portfolios; customer profitability; and sales forces and channels. How does a company measure the effectiveness of the various components of its marketing strategy? What metrics are most effective, and how can these help maximize profits? A new book out from Wharton School Publishing titled Marketing Metrics: 50 + Metrics Every Executive Should Master, identifies the pros, cons and tradeoffs associated with each metric. The book is by Paul Farris, Neil Bendle, Phillip Pfeifer and David Reibstein. Reibstein, a marketing professor at Wharton, agreed to talk with Mukul Pandya, editor in chief of Knowledge@Wharton, and Robbie Shell, editorial director, about this new book. Listen to the podcast.

Few marketers recognize the extraordinary range of metrics now available for evaluating their strategies and tactics. In Marketing Metrics, four leading researchers and consultants systematically introduce today's most powerful marketing metrics.  The authors show how to use a "dashboard" of metrics to view market dynamics from various perspectives, maximize accuracy, and "triangulate" to optimal solutions. Their comprehensive coverage includes measurements of promotional strategy, advertising, and distribution; customer perceptions; market share; competitors' power; margins and profits; products and portfolios; customer profitability; sales forces and channels; pricing strategies; and more.  You'll learn how and when to apply each metric, and understand tradeoffs and nuances that are critical to using them successfully. The authors also demonstrate how to use marketing metrics as leading indicators, identifying crucial new opportunities and challenges. For clarity and simplicity all calculations can be performed by hand, or with basic spreadsheet techniques. In coming years, few marketers will rise to senior executive levels without deep fluency in marketing metrics. This book is the fastest, easiest way to gain that fluency.

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Table of Contents

Acknowledgments  xi

About the Authors  xiii

Foreword  xv

 

Chapter 1:  Introduction  1

Chapter 2:  Share of Hearts, Minds, and Markets  11

Chapter 3:  Margins and Profits  45

Chapter 4:  Product and Portfolio Management  89

Chapter 5:  Customer Profitability  129

Chapter 6:  Sales Force and Channel Management  157

Chapter 7:  Pricing Strategy  195

Chapter 8:  Promotion  239

Chapter 9:  Advertising Media and Web Metrics  263

Chapter 10:  Marketing and Finance  305

Chapter 11:  The Marketing Metrics X-Ray  323

 

Bibliography  335

Endnotes  339

Index  345

 
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