Marketing Value Metrics: A New Metrics Model to Measure Marketing Effectiveness

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		Marketing Value Metrics: A New Metrics Model to Measure Marketing Effectiveness
		Marketing Value Metrics: A New Metrics Model to Measure Marketing Effectiveness

This second edition of Marketing Accountability, now called Marketing Value Metrics, introduces and guides readers through a metrics model developed at the renowned Cranfield School of Management that not only shows how marketing systematically contributes to shareholder value, but also provides a metrics-based framework for developing and implementing marketing strategies that are measurable and accountable. Malcolm McDonald, Stan Maklan and Peter Mouncey introduce strategic marketing planning and then describe in detail the key steps in the modelling process as well as the procedures for applying it in practice.

Updated throughout, this new edition includes the latest digital and social media metrics and advice on measuring the effectiveness of multichannel strategies. Marketing Value Metrics will enable marketing executives to measure more effectively the impact of marketing activity against organizational goals and will empower marketing teams and their managers to justify and defend their plans and strategies to their CEOs and CFOs.

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Marketing Value Metrics is an update to "Marketing Accountability" where McDonald introduces a new perspective on marketing accountability. "We argue that marketing should be accountable for creating new markets and extracting a sustainable flow of profit...accountable to both customers and shareholders in equal measure." In it, McDonald guides readers through a systematic metrics-based framework emphasizing where marketing contributes to shareholder value. Key steps in the framework and modeling processes are detailed. This includes adding metrics for social media and a discussion on techniques of correctly measuring the impact of a multi-channel approach of marketing. Being able to correctly measure how resource allocations translate into performance consequences then into financial effects will help decide which approaches produce the best yield.

Scholarly written, teach chapter starts with a summary and leads into a hierarchy of information. One would hope some of the work (like organizational goals) might already be established, but McDonald covers those elements as well. Lots of good figures and diagrams dot the book and provide some visual ways to understand the data. Interestingly, figure 2.10 is the McDonald Portfolio Matrix, a revised 2x2 matrix where the author emphasizes "you cannot be all thing to all people" which is an important key item to remember when designing metrics to prevent scope creep.

Marketing Value Metrics is comprehensive and well-diagrammed. It creates a solid basis of understanding how to go about designing the right metrics for the organizational goals.

I received a copy of this book from NetGalley in exchange for an honest review.

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