Measuring

Performance
Business Management
and Enterprise
Program Points

performance

evaluation of business marketing objectives using key performance indicators (KPIs),

including: sales revenue, sales returns and customer satisfaction

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Key Performance Indicators (KPIs)

• The performance of a business can be monitored

through the evaluation of business marketing
objectives.
• When marketing objectives are set they should
include a statement about how they will be
measured.
• When the marketing campaign is over these
objectives can be used as a method of reviewing the
success of the marketing goals.
• By creating clear Key performance Indicators (KPIs)
for each objective, a measure set of data can be
reviewed.
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BME 3
Sales and Customer Satisfaction

KPIs will general fall under one of the following

headings:

• Sales revenue,
•
Sales returns and
•
Customer satisfaction

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Evaluating Sales
Revenue and Sales
Return
The business owner can set sales targets
with employees and encourage them to
achieve the goals. Click icon to add picture
Decreased sales returns can be achieved
through a focus on the quality of
manufacturing of the product and on
ensuring that customers are always
selecting the correct product for their
needs

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KPIs to Measure Sales

Sales by customer
Number of customer
Number of sales and segment, Proportional increase
enquires in a week,
sales return demographic or in sales revenue
month or year
geographic area

Proportional increase
in sales after a Percentage take up
Decrease in Sales How long it takes to
marketing campaign of discounts or other
Return process a return
or new product/ special offers.
service launch

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 Number of complaints and/ or questions
Evaluating customer
satisfaction Number of repeat customers in a month or year

The business can develop goals for good

Number of calls made to a customer each week or month
customer service and provide
encouragement and incentives to Proportional increase in sales after a marketing campaign or
employees to provide this.
new product/ service launch
By creating clear KPIs for customer
service the business will be able to
measure customer satisfaction using How long it takes to process an order or respond to a query
some fo the potential KPIs

Warranties claimed

Number of 5 star reviews.

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Practice Question

• Pricing strategies are determined according to what the particular market conditions allow. Prices can be set so
products can aggressively compete or be determined according to brand expectation. Whatever the case may
be, it’s the customer’s perception of value that helps determine the pricing of a product.

(a) Explain two pricing strategies you believe technology-based companies would use as part of their marketing
mix. (6 marks)
•
(a) Describe two Key Performance Indicators (KPIs) that would be used to evaluate marketing objectives.
(4 marks)

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Question a Answer
Explain two pricing strategies
you believe technology-based
companies would use as part
of their marketing mix.
(6 marks)
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Description Marks
For each of two pricing strategies:
Explains the pricing strategy in accurate detail 3
Describes the pricing strategy in a generalised manner 2
Identifies a pricing strategy
Total
1
6
Answers could include:
Skimming: prices are set very high in the beginning which gradually decreases. It’s the norm in the
tech industry. People are attracted to the high price as they associate the tech product a latest
trend, cutting edge.
Penetration: aggressive strategy; deliberately low prices designed to penetrate the market and
compete on price.
Psychological: displaying the prices that try to deceive e.g. instead of $100 it is $99
Premium/prestige: When pricing is kept high so that it is perceived to be a highly luxurious item –
associated with many luxury brands.
Accept any other correct, logical answer
9

Question B Answer
Describe two Key
Performance Indicators
(KPIs) that would be used to
evaluate marketing
objectives.
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Description Marks
For each of two KPIs:
Describes a KPI for marketing objectives 2
Identifies a KPI for marketing objectives 1
Total 4
Answers could include:
A key performance indictor (KPI) is a measurable objective that the
business had decided will indicate if it is on the way to meeting
organisational goals.
A suitable financial KPI for Marketing is Sales.
A suitable non-financial KPI would be Customer Service.
Accept any other correct, logical answer
10