Marketing metrics are the numeric statistics with the help of which the marketers are able to assess their performance with respect to the goals and objectives of the organization. These marketing metrics are used by the marketers in planning the business and keeping a track of marketing activities so as to ensure that the marketing program is on the right track. For example, a company spends lot of money on advertising, but how would they know that the advertisement made by them is doing its job in the market. For this purpose, they make use of marketing metrics.
There are various marketing metrics; the companies use them as per their need and requirement. Some of the most common marketing metrics used by the organizations are market size, market share, market penetration, customers behavior, perceived differentiation, brand awareness, brand image, customer satisfaction etc. For example, brand image is the image that a consumer develops in his or her mind about the product (Baş, et al., 2012). This image is developed over a period of time with the help of advertisement and other marketing campaigns. Customers make use of this image in order to compare the product with other products of other brand. An effective marketing or advertisement is always focused on improving the brand image of the product in the eyes of customers. Similarly, one of the other marketing metrics is perceived differentiation which is defined as the method of differentiating a product from others.
In order to make the best use of these marketing metrics, it is important to use them in appropriate combinations. Marketing teams also make use of qualitative and quantitative analysis as well as statistical approaches to understand the results from these marketing metrics. By observing and evaluating the performance of marketing metrics, the brands can enhance their competitive intellect and also could evaluate the market strengths and weaknesses. It also helps in making budgets for marketing activities (Cretu & Brodie, 2007).