Marketing Metrics, Process, and Segmentation Strategies

Posted on Mar 11, 2025 in Marketing

Marketing Metrics and Formulas

  • Growth Ratio (Deviations) = [(Sales Present Period / Sales Past Period) – 1] x 100
  • Growth (Absolute Terms) = Sales Present Period x (1 + Growth Ratio)
  • Present Value (Absolute Terms) = Sales Future Period / (1 + Growth Ratio)
  • Market Share = (Sales of Your Company / Total Sales Market) x 100
  • Growth in 3 Years = Sales Present Period x [(1 + Growth Ratio)^3]
  • Profit (Absolute Terms) = Sales Present Period x Profit Percentage

Consumer and Volume Calculations

  • A. Total Number of Consumers (Y1) = Consumers Y0 x (1 + Consumer Growth Rate)
  • B. Total Volume (Units) = Total # Consumers Y1 (A) x Average Purchase per Consumer x Average Frequency per Consumer x Annual Consumption Growth (1+…)
  • C. Total Value (€) = Total Volume (B) x Average Price
  • D. Total Profit (€) = Total Volume (B) x Average Profit

The Marketing Process

Understanding the Scope:

Inditex Example:

  • Strategic Level: Be #1 fashion retailer.
  • Tactical Level: Multibrand, quick collections, affordable price.
  • Operative Level: 100 new stores a year, Online, design.

Planning Phase

  1. Step 1: Situation Analysis (SWOT): Identify industry trends, analyze competitors, assess own company, research customer.
  2. Step 2: Market-Product Focus and Goal Setting: Set market and product goals, select target markets, find points of difference, positioning the product.
  3. Step 3: Marketing Program: Develop the program’s marketing mix. Develop the budget by estimating revenues, expenses, and profits.

Now that we have the marketing plan…

Implementation Phase

Obtain resources, design marketing organization, develop schedules, execute marketing program.

Control Phase

Compare results with plans to identify deviations. Act to correct negative deviations; exploit positive ones.

OGSMA Framework

  • Objective: Defining an overarching breakthrough vision. Stable, concise, and linked to company mission.
  • Goals: Specific, Measurable, Achievable, Compatible.
  • Strategies: The choices we make to achieve our objective.

Customer Journey

The ideal path of a client from becoming aware of the existence of the product until they decide to become a customer.

Process: Strangers – ATTRACT – Visitors – CONVERT – Leads – RETAIN – Clients – FELT IN LOVE – Linkage.

The challenge is to attract the interest of customers and align segmented interests and objections with benefits and solutions, to the indicated extent and time.

Segmentation

The partition of the market with the purpose of selecting one or more segments which the organizations can target through the development of specific marketing mixes that adapt to particular market needs.

Process: Segment identification – segment selection – targeting – true market segments.

We should differentiate between core, marketing, and communication target.

True Market Segments

Group identity/systematic behaviors/efficiency potential.

Positioning

The process by which a brand (a product or service) is marketed with the goal of owning a meaningful and differentiated idea in the mind of the target.

Developing an Effective Positioning Strategy

A company that clearly articulates what it does, why it’s relevant, and how it’s different helps customers make better and faster buying decisions.

Strategies: Brand positioning, product positioning, competitive pricing, etc.

Positioning Pyramid

Level 1: (1 Environmental analysis. 2 target. 3 Insight). 4 Benefits, 5 Reason to believe, 6 Positioning, 7 Essence.