I need a discussion done for week 6 Marketing in a Global Environment

JWI518_WK6_LectureNotes_1204.pdf

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JWI 518: Marketing in a Global Environment Week 6 Lecture Notes

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Marketing Productivity Metrics What It Means What metrics are most important for marketers to track over time? Sales metrics, such as purchase volumes, repeat customers, and entry into new markets are all useful metrics that provide snapshot data about product performance. Marketers refer to these metrics as Key Performance Indicators or KPIs. However, new metrics are needed to track success in the digital marketing environment, with its focus on moving customers from brand awareness to purchase to advocacy. Marketers need a way to go beyond snapshot metrics and to measure consumer progress along the pathway from brand awareness to purchasing, and then from initial purchases to brand loyalty and advocacy. In this lecture, we will explore the tools used to measure productivity in digital marketing campaigns. This includes a range of key digital marketing metrics already in use, as well as the new ratio metrics proposed by Kotler et al. to align with their model of the Five A’s customer pathway. You will learn about current marketing technology and see which tools are used to support digital marketing campaigns. As digital messaging and social media platforms grow every more popular with marketers, “Martech” tools are increasingly important in enabling us to collect detailed digital customer data and to create useful metrics based upon such data. Why It Matters

• Key performance indicators continue to provide basic marketing and productivity data

• Digital marketers must also understand new tools for digital tracking and analytics

• All digital marketing uses some form of marketing technology to collect and analyze customer data

“The ultimate goals are to increase attraction, optimize curiosity, build commitment, and increase advocacy.”

Kotler, Kartajaya & Setiawan

JWI 518: Marketing in a Global Environment Week 6 Lecture Notes

Key Performance Indicators Traditional Marketing KPIs Traditional marketing metrics all need to establish a measurement of success for the marketing department centered around engagement and driving value. Traditional marketing campaigns rely heavily on the number of impressions that the campaign gets, also known as its reach. A key measure for print media, for example, is the potential number of customers or audience size the print media is going to reach. Publication companies who partner with businesses will usually provide them the details of their audience size. Marketers need to determine the right content and the marketing messages to generate for that audience size. Another key area in traditional marketing that needs to be measured is the level of sales and the company’s profitability. These metrics are often used as the basis for the budget offered to the marketing department for the next planning period. A major element in any marketing budget is the advertising budget for a specific time period. An important Key Performance Indicator (KPI) that measures the effectiveness of advertising is ROMI, which stands for Return on Marketing Investment. This KPI is critical because it shows, for every dollar spent in advertising, how much money the company received in return. It is simple to calculate, by dividing the amount of money earned in sales by the amount of money spent on ads. For example, let’s say that a company has spent $1,000 on a particular advertisement, and in return it has generated $3,000 in sales, as a result of that advertisement. The ROMI evaluation on this example is calculated as shown below:

Sales / Spending = 3,000 / 1,000 = 3.0 Digital Marketing KPIs In digital marketing, the traditional marketing metrics of impressions, reach and ROMI are still very important. However, with technology that can track many more aspects of digital marketing behavior, the types of KPIs that can be tracked are now much greater. Digital marketers can track the customer journey in great detail, from beginning to end, or as Kotler et al. describe it, from awareness to advocacy. With so much data available, it can be confusing to know which metrics to collect and how much importance to give to each one.

JWI 518: Marketing in a Global Environment Week 6 Lecture Notes

Certain digital marketing KPIs are generally viewed as the most useful and significant metrics, that business leaders should use to measure success. These KPIs are described below:

Clicks This metric shows how many clicks a campaign or digital ad generated. It includes clicks on any type of digital message – e.g., a website banner, social media post, email ad etc. Open Rate This is an email advertising metric. It measures the percentage of people who opened an email; it is considered to represent the effectiveness of the subject line of the email. Click to Open Rate This is another email advertising metric. In this case, it measures how many people “clicked through” – i.e., they went beyond the email message to engage further with that website or company. Somehow the email ad encouraged the customer to follow up and find out more. Bounce Rate This can apply to any digital message. It measures the percentage of people who visit a website or click on an ad, but then leave without more connection with the digital campaign. Unique Visitors This metric measures the number of unique customers that visit a website over a certain time period, such as 30 days. This shows the overall customer count coming to the website, while ignoring repeat visitors. It is useful to assess acquisition of new prospects. Visits This metric is not the same as unique visitors, because it counts the total number of visits to a website over a time period, without ignoring repeat visits. If one person visits the website 5 times in 30 days, they are counted once in the Unique Visitors metric. That same visitor is counted as 5 visits in the simple Visits metric. Conversion This metric is the ultimate digital KPI used to show the effectiveness of a digital marketing strategy. It measures the percentage of those people who visit a website or click on a digital advertisement that also take action, by buying a product or signing up for a service.

JWI 518: Marketing in a Global Environment Week 6 Lecture Notes

New Marketing Metrics Traditional metrics in the field of marketing have focused on sales and revenue, rather than customer relationships, so they are not well adapted to measuring growth in brand awareness and advocacy. New metrics are needed to measure the productivity of social media marketing activities. Kotler et al. have designed some proposed new metrics that can be used to measure the strength of the customers’ connection to the brand. Traditional marketing metrics measure the volume of goods sold, profits earned, and the number of repeat customers. But Internet tools provide copious data that goes well beyond such metrics. How can all this data be analyzed in the most informative way? Based on the Five A’s framework, marketing metrics should go beyond the traditional basic outcome snapshots, since those figures only reflect results at one point on the customer path. New metrics are needed that measure consumer progress through the five-step process from awareness to advocacy. New Metrics: PAR and BAR To satisfy this need for new metrics, Kotler et al. propose two new metrics using a ratio format: purchase action ratio (PAR) and brand advocacy ratio (BAR). These metrics correspond to the Five A’s customer path model and they measure progress in building strong relationships with digital customers. The new metrics do not simply measure sales or profits. They focus on the customer experience and measure the return on marketing investment (ROMI), by showing consumer progress along the pathway towards brand purchases and advocacy. PAR measures how well companies convert brand awareness into brand purchases – in terms of the customer path, the transition from Aware to Act. The formula is:

To illustrate this calculation, imagine a target population of 1,000 people. After completion of the first phase of a marketing campaign, data is collected and analyzed. The snapshot data shows that Brand B is spontaneously recalled by 800 people, so brand awareness is 0.8 or 80%. However, out of those 800 people who noticed the brand, only 120 people actually

Purchase Action Ratio = Purchase Action

Spontaneous Awareness

JWI 518: Marketing in a Global Environment Week 6 Lecture Notes

purchase the brand, so the PAR is 120/800 or 0.15, which can also be expressed as 15%. Next, we will calculate BAR, which measures how well companies convert brand awareness into brand advocacy – the transition from Aware to Advocate. The formula is:

To continue the example above, out of those 800 people who spontaneously recalled Brand B, only 80 people took the step of recommending the brand to others, so the BAR is 80/800 or 0.1, which can also be expressed as 10%. Kotler believes that these ratio metrics, drawn from real-world customer data, can offer insightful measures of success for marketing campaigns and identify specific areas where a new approach may be needed. They can be used to validate expenditure on marketing campaigns and to support proposals to the executive team about new marketing initiatives. Let’s review the example above to see how this works in practice. The initial snapshot metric of brand awareness seemed promising, since 80% of the target audience was aware of the brand. But the two ratio metrics give a truer picture of the real results of the campaign. PAR and BAR scores represent progress in converting customer awareness into action. In this case, actual purchasing and advocacy levels are quite low, since only 15% of the target audience made purchases and only 10% recommended the brand to other people. Clearly, this marketing team needs to modify their campaign to engage customers more actively with the brand.

Marketing Technology Digital marketing is highly dependent on marketing technology, or Martech. Martech is simply a reference to various software tools that marketers use to plan, execute, track, measure, and evaluate marketing campaigns. A Martech stack is the group of technologies that marketers use to analyze and improve their marketing across the customer lifecycle. The benefits of marketing technology include improvement of internal collaboration, better measurement of the impact of marketing activities, and discovery of new ways to reach customers.

Brand Advocacy Ratio = Spontaneous Advocacy

Spontaneous Awareness

JWI 518: Marketing in a Global Environment Week 6 Lecture Notes

In today’s digital world, technology is fundamental to marketing. All digital marketing uses some form of marketing technology to analyze data from marketing campaigns. If your marketing plan includes digital elements, such as social media marketing, content marketing, email marketing, and search engine marketing, then you need to understand Martech. If used well, Martech tools will enable you to adjust and adapt your marketing tactics to your target customer’s needs and wants faster, in order to drive sales of your company’s products and services. Below is an overview of key categories of Martech tools and examples of some of the top providers in each category. (Gotomarketers.com): Advertising and Promotion

Advertising platforms and tools are used to streamline paid ad efforts across search engine marketing campaigns, as well as social media advertising and programmatic advertising.

SEM Search engine marketing (SEM) is the process of gaining website traffic by purchasing ads on search engines. SEM tools are used to research keywords, monitor competition and manage campaigns. Examples include Google Ads, Microsoft Advertising, and SEMrush. Social Media Advertising Social media advertising tools are similar to SEM tools, but they are designed specifically to help marketers manage social media ads. Examples include the Facebook Ads Manager app (for iOS and Android), StitcherAds, and AdEspresso.

Programmatic Advertising Programmatic advertising involves the process of buying ads by managing bid rates, allocating budgets, negotiating prices, etc. Instead of leaving ad buying to humans, Martech tools use Artificial Intelligence (AI) to manage the process. This enables automated buying and selling of online ads, as well as automated targeting of specific audience segments. Examples include SmartyAds, Simpli.fi. and AdRoll.

Social Media Marketing

Social media marketing connects your audience and promotes your brand across social media channels, such as Facebook, LinkedIn, Twitter, Pinterest, Instagram, etc. Martech tools are essential in social media marketing for managing and scheduling campaigns, tracking your conversations on social platforms, and tapping into the power of influencer marketing.

JWI 518: Marketing in a Global Environment Week 6 Lecture Notes

Social Media Management Tools These are designed to automate scheduling and message posting, as well as to provide analytics for campaigns. Examples include Hootsuite, Buffer, and Sprout Social. Social Media Monitoring Tools These help marketers track all the brand’s interactions with prospects and customers on social networks. They also track the competition and monitor industry trends. Examples include Brandwatch Analytics, TweetReach, and Digimind.

The use of Martech tools is essential in digital marketing. It can significantly impact the way marketers connect with their targeted audience. It enables marketers to act and react quickly, based on behavioral insights from in-depth data analysis. As a result, they can influence the buyer’s journey from awareness to purchase to advocacy, and ultimately, drive revenue growth. Looking Ahead In this lecture, we covered the use of Key Performance Indicators, both in terms of traditional metrics and newer digital metrics. We explored two new metrics in ratio format, PAR and BAR, that are designed to measure the progress of consumers along the customer path from brand awareness to purchasing and advocacy. You learned about the impact of social media marketing and explored the benefits of using today’s powerful marketing technology tools to collect and analyze digital data. In the next lecture, we cover the concept of branding, examining the challenges marketers face in their quest to differentiate their product or service from similar offerings in a crowded and busy digital marketplace. You will explore how marketers design their branding campaigns in the era of digital messaging and social media. You will also learn how modern brands use human attributes to create a strong, personalized connection with consumers, and how marketers use the tool of personas to help them design effective digital branding strategies.