Marketing Success Defined
Keywords: Marketing
How do you personally define success? High income? Substantial net worth? A fine home? Peer recognition?
On a personal basis, there are likely almost as many definitions of success as there are people in the world.
In marketing, though, there are just four measurable elements of success:
Profitability, Market Share, Customer Satisfaction and Customer Retention.
Profitability requires little explanation. The very reason businesses exist is to make a profit, or generate more revenue than they pay out. Profitability may be increased by reducing overhead and the cost of goods sold or by increasing the price to the buyer.
But prices can only be raised so much. Per the laws of price elasticity, as prices rise, unit sales tend to decline, as does Market Share; which brings us to our next measure of marketing success.
Market Share, as a measure of success, is important to marketers since the greater the share, the more stable the brand’s performance is in the marketplace. A product with 65% market share is a force with which to be reckoned. A product with 3% share is vulnerable to a variety of market factors such as competitive pricing, promotions, loyalty to better-known brands and more.
Financial managers understand the impact of Profitability and Market Share. But concepts such as Customer Satisfaction and Customer Retention are softer items and tend to be treated as lesser by those managers. Yet, the long term success and growth of a brand is highly dependent on them.
Customer Satisfaction doesn’t appear on a balance sheet. It can’t be measured in dollars and cents. It’s measured by the customer’s feelings about a brand. Does the brand deliver its promise? Is it a good value? Does it bring status to the owner? Is the customer generally happy with the product? Customer Satisfaction begets repeat purchases, loyalty, word-of-mouth advertising and, of course, long-term profitability via Customer Retention.
Customer Retention, the final measure of marketing success, is closely tied to Customer Satisfaction, Profitability and Market Share.
A satisfied customer is likely to remain loyal to a brand, thus enhancing market share over the long-term, as new customers are acquired. Retained customers increase the profitability of a brand. In the course of acquiring new customers, retained customers’ purchases can be counted on for continued profit performance.
It’s widely known that it’s five times more expensive to acquire a new customer than it is to keep an old one. Makes you wonder why marketers don’t generally invest more in Customer Retention, doesn’t it?
Few business organizations focus on all four elements of marketing success, probably because they’re difficult to balance and manage as separate items, yet they’re strongly interdependent.
The four elements of marketing success are reasons enough for financial managers and marketing managers to gain a better understanding of one anothers’ disciplines and work toward the common good of their companies.
Windmills consult www.windmills.com.ua
Previous Articles Highlighter:
Benefits Of Re-Financing (1)
This enables the homeowner to take out a smaller mortgage when they re-finance their home because they are repaying a smaller debt than the original purchase price of the home.
How To Raise Funds To Start A Franchise Business (2)
Where to Look for Funds There are various ways to which a franchise business can be accomplished. Here are some possible alternatives: 1. Financial Loans. The easiest way of being able to allocate the needed funds would be to apply for financial loans with banking and lending institutions.
How To Look For Good Franchising Information (3)
And for some investors, this may be a very lucrative business opportunity. Others may find such no luck. If you are considering franchising, it is best to study the dynamics first before plunging into it.
Combining An Affiliate Program And A Website To Earn Residual Income From Home (4)
By choosing and placing ads carefully a business owner can make the most of the situation and build nice multiple streams of income. They will boost their income while also being able to incorporate everything together.
Affiliate Marketing Secret - Build Your Own Mailing List Even If You're An Affiliate (5)
Remember that everything should be written as if you are talking to a person, rather than as if you were writing a formal article. If you don't feel comfortable writing these articles yourself, you can always hire a ghostwriter at at a website where freelancers bid for your work like Elance or Guru dot com.
Goodbye Trips To The Gas Station (6)
Keywords: AutoFFV, flexfuel, gasoline, ethanol, e85, flex fuel vehicle, FFV The Chevrolet Volt is a battery-powered, four-passenger electric vehicle that uses a gas engine to create additional electricity to extend its range.
Starting A Work-at-Home Business (7)
Will you be producing your own goods and services or will you be promoting someone else's? These are all basic questions and they must be answered from the outset.
Online Courses: Do The Advantages Outweigh The Disadvantages? (8)
Many online courses are accredited by regional and/or national accrediting agencies. - Improve technical knowledge of computers, software, and the internet. - Working in virtual teams provide the student with valuable skills in the global economy.
Understanding Commission-Based Affiliate Programs (9)
These days, content is the top way to get traffic to your site and to get noticed by the search engines, so adding not only affiliate programs, but a good description, report, or blurb that pre-sells the item should make your site worth visiting.
Natural Hair Loss Remedy Discovered In Apples (10)
(Vellus hairs are short hairs, only a centimeter or two long. The follicles that produce them never produce any other kind of hairs. Terminal hairs are the long hairs that grow on the head.) Increased Number of Terminal Hairs The next study involved 21 men in various stages of hereditary hair loss.
Newer Articles Highlighter:
Effectively Using Overture/Yahoo To Get Website Visitors (1)
Its a marketing strategy that will increase your website visitors as well as increase your sales resulting to profit. It takes money to make money, while there are some methods that are basically low cost or free, using a marketing service such as what Yahoo/Overture offers will provide results faster and on a larger scale.
Alaska Fairbanks Aspen Hotel (2)
The unsurpassed beauty of winter is offered you here - from the enthralling northern lights to mushing with a dog team on wooded trails and larger than life ice sculptures.
Why Choose A Florida Lot For Building (3)
The main reason for this preference is the vast range of facilities that surround the place. Apart from many places of utility, there are also a number of recreational joints around the place.
Six Ideas For Decorating Kids Rooms (4)
You may even decide to put up a display area using either a wall or corkboard with their favourite photos and artwork on it and don't forget the all important shelving for them to display items that they have collected as well as trophies that they have won along with anything else they want to show off.
Franchise Business: When To Quit (5)
But some businesses owners stop operating their businesses not for the reason that the business is losing money but rather, it is because they had received an offer from someone to buy the business.
Importance Of Consulting A Franchise Specialist (6)
You know, these are the moments when your mother branch suddenly earns way more than what you've expected for a considerable period of time. It may also come in the form of service or product expansion.
Points To Consider Before Business Franchising (7)
Second, you must make sure that you have ample resources and capital that can keep the business franchise running, while taking care of your mother branch. The capital you must readily have should cover expenses for supplies and other expenditures which need to be settled in order to make you business franchises work.
The Pros And Cons Of Buying A Franchise Business (8)
Many people are now venturing into having their own franchise business because of its many advantages. Of course, where there are advantages, there are also disadvantages, which can make many prospective business owners to think twice about their decision.
A Basic Introduction To Spyware (9)
There are many threats on the Internet, from which these suites can protect your computer. They are quite easy to install and allow parents to monitor children who use the computer.
Playing Creative Games For Fun: A Great Way To Relax (10)
New research on the brain contradicts this cultural dismissal of play, by emphasizing the importance of feelings and the necessity of feeling safe and relaxed in order to think clearly and productively.