What Reasonable Marketing Entails
Marketing is an important business function, which has the potential to improve sales and revenues, desirably even in saturated markets. To achieve its goals, the performance of marketing needs to be measured to improve decision-making. There are several marketing metrics (including return on investment and likeability) that can enable business leaders to select effective marketing tools. These metrics can help business leaders decide which tools will improve sales and which are unnecessary. In this paper marketing metrics, marketing performance data, and the effort of getting closer to customers are explored using article deconstruction technique. A case study on Apple Company is used to understand the application of reasonable marketing initiatives. That is, unlike other competitor firms, Apple does not find it reasonable to use social media as one of its marketing tools based on the platform’s weak points. Every business leader should have a thorough knowledge of what reasonable marketing practices entails to enable its functions to perform its function strategically.
Theory– Article Deconstruction Using the MEAL plan
The Metrics that Marketers muddle
Main points. Performance of any business activity needs to be measured for good decision-making. In marketing, there are many metrics used to measure the effectiveness of the activities used to attract customers and improve sales. However, without a good understanding, marketing metrics would not be as effective as needed. According to Bendle & Bagga (2016), market share, likeability, net promoter score, ROI, and customer lifetime value are the five types of marketing metrics commonly known but are widely misunderstood and misused. For example, most business leaders misuse market share as a business objective rather than using it as a measure of determining the performance of marketing efforts in terms of sales or revenues. In regards to the net promoter score, which is the difference between the percentages of promoters and detractors, it is established that the results obtained hide important information that would be useful to a business. That means failing to be more informed weakens a company’s competitive position. The authors give a detailed discussion of how each metric is misunderstood and wrongly used. Further, additional information is provided for each metric, what it means, and how it should be employed by businesses to help them grow.
Evidence. The authors have used factual evidence to illustrate how common marketing metrics have been misunderstood and consequently misused. Considering the examples used, the authors seem to use what they observe to be commonly practiced by business leaders.
Analysis. Bendle & Bagga (2016) use tabulations and flow charts to distinguish between the right and wrong uses of each marketing metrics
Linking. The article has discussed five different marketing metrics separately, which are- ROI, net promoter score, market share, customer lifetime value, and likeability. The focus of the discussion is on how the metrics regardless of whether they are commonly used or not, are continually misunderstood and wrongly utilized. By doing that, marketers are becoming unable to show the value marketing has in making business successful. That is because, misunderstanding the metrics makes it difficult to measure the significance they have in business. With a good understanding, metrics can be improved to have more value in business. Using the example of market share, when it is used as a metric it has an objective of increasing profitability but when it is wrongly understood, it is misused with an objective of expanding the market.
Breakthrough brands 2017
Main points. Gallagher, et al. (2017) focus on those new firms such as Instagram, Airbnb, and Spotify that have succeeded in winning customer loyalty and customer satisfaction in the already saturated market. The characteristics of these firms are found to be those that rely heavily on technology to develop and sell their products/services and in being closely connected to their customers. The success of the firms is comparable with big firms such as Apple, Disney, and Coca-Cola that have been there in the market. Another interesting point is that some of the traditional firms still have maintained their position in the market. In addition to the three, others are Walmart, Toyota, Samsung, Microsoft, Ford, and others.
Evidence. Qualitative data was collected from a sample of 4,000clients to establish which of the new firms were most liked in the market in terms of how valuable their products are to customers.
Analysis. The authors used questionnaires to collect qualitative data from the sampled population. To analyze the data, type of industry and age in the industry were the variables used to organize data to determine its mode that is needed to make conclusions.
Links. Gallagher et al. (2017) have organized their findings according to how popular the firms are in their respective categories. That means Airbnb ranks and Apple are the most liked in their respective categories.
Demonstrating the Value of Marketing
Main points. Hanssens & Pauwels (2016) establish that marketing is a form of business activity that is struggling to show the value it creates for the company. The outcome is claimed to be caused by a lack of adequate data to account for the millions of money used to support marketing activities. Without proper measurements, it is agreed that it is impossible to determine the effect of any changes made on marketing activities on sales. Businesses need to work with sufficient data that informs about marketing and its performance in order to determine how it can increase its competitiveness.
Evidence. To support their arguments, Hanssens & Pauwels (2016) first use secondary sources to illustrate how changes in marketing are done by different companies based on product lifecycle in emerging and mature markets. Afterward, the article conducts a qualitative study by conducting experiments and surveys to gather data that would be used to elaborate on the importance of having marketing performance data.
Analysis. Secondary data and surveys used in the qualitative research study are used and data collected is categorized according to established performance variables, which include customer perception, customer behavior, finance, accounting, and others.
Links. The article has established how marketing performance data improves decision-making. However, the process of acquiring the data seems to be complex following the limitations gathered from the secondary sources and those experienced in the qualitative study. Nonetheless, business-leaders are advised to use technological aids to enable them to obtain and utilize data.
Based on the proper use of marketing metrics and marketing performance data, Apple Company does not consider the use of the social media in its marketing strategy regardless of whether its competitors and its other peers use it or not (Pradiptarini, 2011). According to the firm’s top management, as noted by Kapko (2015), the failure to use social media to boost the company’s marketing initiatives has less impact on the firm’s growth. Pradiptarini (2011) informs that the decision to choose whether to use social media marketing or not is dependent on its return on investment. In addition to the quality of content, social media marketing is found to require other marketing initiatives to be effective. That means marketers need to relate more closely with their customers to understand their needs in order to improve product value. Social media is yet to be improved to cover this need since the method is only focused on having short-term relationships with customers. More so, intensive use of online communication limits physical interactions that are more effective in relationship building. Besides the improvements needed, even though social media has the ability to popularize a company’s products/services to a larger group of people, there is no guarantee that the millions of the audiences will be convinced to make a purchase. To conduct social media marketing requires specialized employees that are trained to manage the platform, technology, and other costly resources. Therefore, some firms such as Apple need to be convinced that investing in the platform will have a reasonable return.
Deconstructing three different articles that discuss projects related to marketing has enabled the study to establish that the best marketing method is one that enables businesses to get closer to their customers in an effort to understand their needs and improve product value. In this regard, the performance of all marketing activities needs to be measured to establish how they are benefiting the company and how any change in them would affect it. Thus, conducting marketing blindly without a proper account of how resources are used and what the returns are is a poor way of running a business. That means just like social media marketing, not all marketing activities are effective when used alone. Marketers need to establish how the activities can be improved to increase sales and revenues. In light of this, having a good understanding and appropriate use of marketing metrics are necessary to conduct reasonable marketing in addition to utilizing marketing performance data.
Bendle, N. T., & Bagga, C. K. (2016). The Metrics that Marketers muddle. MIT Sloan Management Review, 57(3), 73-82.
Gallagher, L., Nusca, A., Kokalitcheva, K., Hackett, R., Lev-Ram, M., Korosec, K., & Rao, L. (2017). Breakthrough brands 2017. Fortune, 75(1), 64-69.
Hanssens, D. M., & Pauwels, K. H. (2016). Demonstrating the Value of Marketing. Journal of Marketing, 80(6), 173-190.
Kapko, M. (2015). Inside Apple’s odd, yet effective, Social Media Strategy.CIO from IDG. Retrieved from https://www.cio.com/article/2979114/social-networking/inside-apples-odd-yet-effective-social-media-strategy.html.Pradiptarini, C. (2011). Social Media Marketing: Measuring its effectiveness and identifying the Target Market. UW-L Journal of Undergraduate Research XIV. Retrieved fromhttps://www.uwlax.edu/urc/jur-online/pdf/2011/pradiptarini.mkt.pdf.
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