Marketing Analytics: PPT-6 (Marketing Activities Perspective Metrics)

Marketing Analytics
PPT-6 (Marketing Activities Perspective Metrics)
Naveed Ilyas
Visiting Faculty
Institute of Business Management
1
Module 3:
Marketing
Activities
Perspective
Metrics
Ch - 6
2
Sales Force & Channel Management
Outline
• Sales Force Coverage
• Sales Force Goals
• Sales Force Results
• Sales Force Compensation
• Pipeline Analysis
• Numeric Distribution, ACV, PCV
• Facings & Share of Shelf
• Out of Stock and service levels
• Inventory Turns
3
Sales Force Coverage: Territories
• Territories are the

• customer groups or
• geographic districts
• Companies strive to balance their territories because this

can reduce costs and increase sales. Unbalance
territories may result in
• Under-servicing of customers or
• Over-servicing of customers
4
Sales Force Coverage: Territories
• Territories should also be compares in terms of size as

well as travel time.
5
Sales Force Objectives: Settings Goals
• Sales goals are generally needed to motivate salespeople.

These can have negative effects as well
• The purpose of setting objectives is to

• Motivate Sales personnel
• Establish benchmarks for evaluating and rewarding the
performance
• Goals should be SMART

• Specific, Measurable, Attainable, Realistic and Time
bound
6
Sales Force Objectives: Settings Goals
• Sales goals are generally established by using

combinations of bottom-up and top-down procedures
• Top management generally uses multiple metrics to

forecast sales, including
• Prior year sales of the product in question
• Total prior year sales in the relevant market
• Prior year sales by competitors
• The company’s current market share
• It is always advisable to alter the goals if it appears that

more than 90% or less than 50% of the sales force is on
track to achieve their goals
7
Sales Force Effectiveness: Measuring
Effort, Potential, and Results
• There are many ways to gauge the performance of
individual sales people and of the sales force as a whole,
in addition to total annual sales
8
Sales Force Effectiveness: Measuring
Effort, Potential, and Results
• This is also a very important metric
• Besides expenses, customer service is also very

important
9
Sales Force Tracking: Pipeline Analysis
• To track the progress of sales efforts in relation to all

current and potential customers
• Helps in forecasting sales and evaluation of sales force

workload
10
11
• Interest Creation
• Building awareness
• To identify targets
• Cold Lead: A lead that has not specifically expressed interest
• Warm Lead: A lead that is expected to be responsive
• Pre-Purchase
• Identifying prospects from among cold and warm leads
• First meeting will take place
• Prospect: a potential customer who has been identified as a
likely buyer, possessing the ability and willingness to buy
12
• Purchase
• After prospects are identified and agree to additional calls,
sales people engage in second and third meetings with them.
• Sales people engage in persuading , negotiating, and/or
bidding
• Post-Purchase
• Delivery, installation (if necessary), collection of payments and
possible trainings
13
14
15
Numeric, ACV and PCV Distribution,
Facings / Share of Shelf
• Distribution metrics quantify the availability of products

sold through resellers, usually as a percentage of all
potential outlets.
• For marketers who sell through resellers, distribution

metrics reveal a brand’s percentage of market access
• Balancing a firm’s efforts in “push” (building and

maintaining reseller and distributor support) and “pull”
(generating customer demand) is an ongoing strategic
concern for marketers
16
• Numeric Distribution
• Based on the number of outlets that carry a product
17
• All Commodity Volume (ACV)
• Weighted measure of product availability, or distribution,
based on total store sales. ACV can be expressed as a dollar
value or percentage
18
19
20
• The principal benefit of the ACV metric, by comparison
with numeric distribution, is that it provides a superior
measure of customer traffic in the stores that stock a
brand.
• For example, in a market composed of two small stores,

one superstore, and one kiosk, numeric distribution would
weight each outlet equally, whereas ACV would place
greater emphasis on the value of gaining distribution in the
super store
21
• Product Category Volume (ACV)
• PCV is a refinement of ACV.
• ACV may lead the marketer of a chocolate bar to seek

distribution in the high traffic superstore, PCV might reveal
that the kiosk, surprisingly, generates the greatest volume in
snack sales.
22
23
• Category Performance Ratio

• The relative performance of a retailer in a given product
category, compared with its performance in all product
categories
• If a distribution network’s category performance ratio is

greater than 1, then the outlets comprising that network
perform comparatively better in selling the category in
question than in selling other categories, relative to the
market as a whole
24
• Share of Shelf: A metric that compares the facings of a given brand

to the total facing positions available, in order to quantify the display
prominence of that brand.
25
Supply Chain Metrics
• Purpose: To monitor the effectiveness of an organization in

managing the distribution and logistics process
• OUT OF STOCK: This metric quantifies the number or retail outlets

where an item is expected to be available for customers, but it is
not.
26
• SERVICE LEVELS, PERCENTAGE ON TIME DELIVERY: This

metric captures the percentage of customer (or trade) orders that
are delivered in accordance with the promised schedule
27
• INVENTORY TURNS
• INVENTORY DAYS
28
29
Assignment
• Marketing Metrics: Ch 6

•Case Study: MMI – Product
Placement
30
Thank You
31

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Marketing Analytics

PPT-6 (Marketing Activities Perspective Metrics)

• Territories are the

• Companies strive to balance their territories because this

• Territories should also be compares in terms of size as

• Sales goals are generally needed to motivate salespeople.

• The purpose of setting objectives is to

• Goals should be SMART

• Sales goals are generally established by using

• Top management generally uses multiple metrics to

• It is always advisable to alter the goals if it appears that

• This is also a very important metric

• Besides expenses, customer service is also very

• To track the progress of sales efforts in relation to all

• Helps in forecasting sales and evaluation of sales force

• Distribution metrics quantify the availability of products

• For marketers who sell through resellers, distribution

• Balancing a firm’s efforts in “push” (building and

• For example, in a market composed of two small stores,

• ACV may lead the marketer of a chocolate bar to seek

• Category Performance Ratio

• If a distribution network’s category performance ratio is

• Share of Shelf: A metric that compares the facings of a given brand

• Purpose: To monitor the effectiveness of an organization in

• OUT OF STOCK: This metric quantifies the number or retail outlets

• SERVICE LEVELS, PERCENTAGE ON TIME DELIVERY: This

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