Marketing Performance Dashboards

Deakin email address: asidh@deakin.edu.au

Companies using analytics tools are outperforming their competitors. Adobe Marketing Cloud users are seeing even greater results and benefit from 5.3% year-over-year increase in return on marketing investments compared to a 0.4% increase from their peers.

Marketing managers need metrics to assess the performance of their investments in advertising campaigns and other avenues of marketing spend. Marketing metrics refer to the set of measures that assist marketers to quantify, compare and interpret marketing performance.

Marketing managers cannot manage what is not measured; hence managers need to select specific metrics that are relevant to their industry in assessing their performance (Iacobucci 2013, p. 218). Examples of marketing metrics include sales turnover, market share, average prices, levels of consumer awareness and penetration in trial (Iacobucci 2013, p. 218). The picture below presents a myriad choice of KPIs or metrics available for marketing managers to consider in assessing performance.

For example, crucial marketing metrics include leading indicators as the more leads a marketing initiative generates, the more sales opportunities a business has to drive sales growth. However as discussed later, managers should not solely rely on a ‘silver metric’ to assess performance.

Dashboards provide managers the means to oversee multiple measures to optimally manage their companies (Iacobucci 2013, p. 219). A business dashboard is a data visualization tool that displays the current status of metrics and key performance indicators for a business. Dashboards consolidate and arrange metrics or scorecards on a single screen (Iacobucci 2013, p. 218). The essential feature of dashboards is  the ability of managers or users of the dashboards to customise the metrics presented on the dashboard over time and across departments.

It should be noted that the metrics used by management to assess marketing performance should not be solely limited to ‘silver metrics’ such as return on investment or discounted cash flows. The reliance on ‘silver metrics’ could result in management forming false diagnoses of marketing performance (Ambler & Roberts 2008, p. 733).

Most high performing management teams utilise the multiple metric approach in designing their dashboards, which bring together multiple measures into a clear integrated and concise package. Marketing managers  can  simultaneously view a range of metrics on a single page or screen giving an easy-to-read summary of up to twenty key marketing metrics rather than being driven by a single ‘silver metric’ such as ROI (Ambler & Roberts 2008, p. 743).

It was difficult to get a clear picture of our marketing data when it lived in silos. Now, seeing it in an integrated dashboard, we can quickly pinpoint gaps and successes – Guy Fish, Marketing, H&R Block

Some of the reputable vendors of dashboard platforms include IBM Cognos, Oracle and Microsoft. Datorama specialises in developing dashboards to support marketing intelligence.

“Datorama has drastically improved how we measure and analyze all of our marketing  activity. It enabled us to quickly centralize our reporting across all of our (previously)  siloed data in an easily customizable way. Now, we can automatically produce visual and  interactive reports that can be replicated globally across our 60+ entities.”  Kyle Webb, Group Digital Analyst, Michael Page

Marketing dashboards generate efficiencies by using the business’ marketing
resources to handle higher value  decisions, rather than juggle  multiple platforms and agencies. The other benefits of a marketing dashboard include:

Marketing Analytics
  • Data aggregation from any channel: Cross-channel insights.Optimize marketing performance.  Compare all of your online and
    offline marketing and sales  channels in a single dashboard.
  • Automatic data modeling
  • Data Visualization
Recommendations and Actions
  • Professional recommendations
  • KPIs management
  • Alerts and notifications
Cross-Channel Reporting
  • Various reports options: Easily schedule
    automatic reports. Quickly generate
    flexible, customized analysis of  marketing initiatives’ impact.
  • Public and private sharing
  • Internal collaboration

A demonstration from Domo, another vendor of marketing dashboards is presented below.

Student name: Amarjit Sidhu ; ID: 93072431

References:

Ambler, T, & Roberts, J 2008, ‘Assessing marketing performance: don’t settle for a silver metric’, Journal Of Marketing Management, 24, 7/8, pp.733-750, Business Source Complete, EBSCOhost, retrieved 18 May 2016, <http://web.b.ebscohost.com.ezproxy-f.deakin.edu.au&gt;

Datorama – Marketing Intelligence, retrieved 23 May 2016,  <http://direct.datorama.com/lp3/&gt;

 Iacobucci, D 2013, Marketing Management (MM4), Student Edition, South-Western, Cengage Learning, Mason, Ohio.

Pay for your Marvel Movie with a Marvel Mastercard

Deakin email address: asidh@deakin.edu.au

Marvel 2

With a portfolio of over 9,000 characters we ARE the comic industry leaders. Marvel Entertainment has the tools, creative staff and experience to create truly original programs that convey the essence of your brand’s message and take consumers to a whole new world.

As the media landscape is forever changing and growing, Marvel is continuously on the forefront, creating new and innovative ways to share our partner’s stories through our print, custom and digital vehicles.

The long term goal of promotion or advertising is to create an enhanced brand reputation and increase future revenue. To achieve this, an integrated marketing communications strategy should ensure that ‘various advertising efforts send a consistent message across the different customer touch points’ (Iacobucci 2013, p. 159). Marvel had a consistent message across all its media channels including print, custom, TV and digital; and that message is that “we ARE the comic industry leaders”.

If a company is advertising that a brand is a premium product and exclusive, then the product needs to of a high quality, priced relatively high and distributed exclusively (Iacobucci 2013, p. 145). Marvel has created an exclusive and enhanced brand reputation with an international social media following in the millions.

The consistency of the marketing message of Marvel power, excitement and escapism is evident in the multitude of ‘touch points’ and wide ranging product categories over which Marvel has wrapped its tentacles: comics, movies, multi-media downloads, apparel, kids games, Marvel kids and even a Marvel MasterCard.

Currently the Marvel brand is likely to be between the growth and maturity stages of its life cycle. The goals of advertising during these stages of the product’s life cycle should be to enhance the target segment’s positive attitudes about the brand and remind consumers of the brand’s existing qualities (Iacobucci 2013, pp.147-148).

Marvel’s movie masterplan extends to 2028, says president

Marvel’s large fan base on social media can post their positive experiences and endorsements about the brand. Social media facilitates word of mouth persuasion and online endorsements allowing Marvel to utilise social media as a powerful medium with significant reach and frequency to affect behaviour of existing and new customers (Iacobucci 2013, pp. 175-177). Furthermore, social media offers better interaction with consumers, reduces the customer defection rates and increases customer trust (Constantinides 2006, p. 413).

With social media, customers have become active participants in dialogues about brands. To avoid brand misinformation, Marvel’s massive advertising machine shapes online discussions by:

  • Providing multiple online platforms to obtain information;
  • Being outrages or funny in their online comments;
  • Providing exclusivity to their online community such as teasers about superheroes life stories; and
  • Supporting causes that are important to their target audience (Mangold & Faulds 2009, pp.363-364)

https://youtu.be/197303tCrYk

New product development is required to replace existing products within the brand’s portfolio that are ageing and experiencing declining sales and profits. The product life cycle describes the evolution and duration of a product in the marketplace (Iacobucci 2013, p. 97). The phases within a product’s life cycle are market introduction, market growth, maturity and finally the product’s decline. The above phases tend to have predictable sales and optimal marketing actions. Marvel’s strategy is replacing declining interest in existing heroes and villains with new heroes and with ‘innovative’ super powers.

Student name: Amarjit Sidhu ; Student ID: 93072431

References:

Constantinides, E 2006, ‘The Marketing Mix Revisited: Towards the 21st Century Marketing,’ Journal of Marketing Management, vol. 22, no. 3-4, pp. 407-438, doi:10.1362/026725706776861190

Iacobucci, D 2013, Marketing Management (MM4), Student Edition, South-Western, Cengage Learning, Mason, Ohio.

Mangold, WG & Faulds, DJ 2009, ‘Social media: The new hybrid element of the promotion mix’, Business Horizons, vol. 52, no. 4, pp.357-365, doi:10.1016/j.bushor.2009.03.002

Brand Extensions with an Asian Twist

Deakin email address: asidh@deakin.edu.au6c3ac0a1bebb25759b4105e9127b32b9An $88 Kit Kat bar, for the chocolate lover who has it all. Picture: Nestle

There is growing trend for melding Asian consumer tastes with long-established Western brands.

Nestlé’s Kit Kat launched a number of limited edition ‘gold flavoured’ Kit-Kat’s in Australia during the 2016 Chinese New Year. The gold flavoured Kit Kat bars included Phoenix Oolong tea leaves from China along with lychee and rose petals. Nestle only made 88 of the bars and sold them for $88 as the number 8 is considered lucky in Chinese culture.

McDonalds_China1

The influence of Asian consumer tastes on Western brands is not unique to Australia as reflected by the successful brand extension strategy of American fast food chains in Asia. For instance in China, KFC and McDonald’s have been catering to Chinese tastes by featuring a variety of rice dishes on their menus as rice is a major staple of the Chinese diet.

Brand extensions are a strategic use of a brand’s equity to leverage the brand’s reputation, reliability and high quality to induce customers to buy a new offering under the same brand (Iacobucci 2013, p. 83).

75% of the McDonald’s menu in India comprises new product creations under the McDonald’s brand to meet the needs of Indian customers that  consume neither beef or pork due to their religious beliefs (Dash 2005, p. 5). 80% of India’s population revere cows as sacred and over 150 million Indian Muslims do not eat pork.

Starbuck’s brand extension strategy in China was to adopt the Chinese tea-drinking culture by introducing green tea lattes and popular local teas like Oolong and Mudan alongside their fresh-brewed coffee. As a result, Chinese consumers quickly developed a taste for coffee and Starbucks’ popularity skyrocketed.

Starbucks

New Product Development

The companies that own the well-known brands above spend their resources on innovating new products to better satisfy current customers, attract new customers and fend of competition (Iacobucci 2013, p. 91). From a macro-environmental context, the changing demographics in Australia due to Asian migration and the rise of the middle-class consumers in China and India has led major Western brands to innovate and compete for substantial worldwide profits.  McDonalds serves 4 million customers in China on a daily basis (CNBC International, 6 August 2014).

Product Life Cycle

New product development is required to replace existing products within the brand’s portfolio that are ageing and experiencing declining sales and profits. The product life cycle describes the evolution and duration of a product in the marketplace (Iacobucci 2013, p. 97). The phases within a product’s life cycle are market introduction, market growth, maturity and finally the product’s decline. The above phases tend to have predictable sales and optimal marketing actions. McDonald’s strategy is discussed below to highlight how large Western brands have continued to grow in revenue by replacing declining products with new innovative products.

During the early expansion phase of McDonald’s life cycle in the United States, there was a strong demand for their products, and sales grew rapidly. When the growth rate of sales for their basic hamburger began to decline, McDonald’s introduced new products, such as the Big Mac and McMuffin to counter the decline in sales for the basic hamburger.  As the life cycle for each new product matured, McDonald’s continued to grow by adding new products and entering new markets (Gup & Agrrawal 1996, p. 3). When the trading environment in the United States  became increasingly competitive and saturated, McDonald’s opened new markets overseas in countries such as China and India. The strategy has been successful due to the development of new products that consider the cultures in which their businesses operate.

By adapting to local tastes and cultures while still maintaining their brand identity these chains have successfully become powerful forces in Asia.”

Student name: Amarjit Sidhu ; Student ID: 93072431

References:

Dash, K 2005, ‘McDonalds in India’, Thunderbird: The Garvin School of International Management, pp. 1-25, retrieved 25 April 2016, <http://www.csumba.org/mba602/McDonald’s%20in%20India.pdf&gt;
Gup, B & Agrrawal, P 1996, ‘The Product Life Cycle: A Paradigm for Understanding Financial Management’, Financial Practice and Education, Fall/Winter 1996, pp. 1-9, retrieved 25 April 2016, <http://ssrn.com/abstract=2621151&gt;
 Iacobucci, D 2013, Marketing Management (MM4), Student Edition, South-Western, Cengage Learning, Mason, Ohio.

Telsa Motors Repositions for the Future

Deakin email address: asidh@deakin.edu.au

Tesla Motors – Introduction

Tesla Motors was founded in 2003 by a group of engineers in Silicon Valley, USA. Tesla engineers, builds and sells premium electric motor vehicles which generate instant torque, incredible power and zero emissions.

In 2012, Tesla launched Model S, the world’s first premium electric sedan. The Model S was built from the ground up to be 100% electric ( http://www.teslamotors. com /about). The cheapest variant of the Model S retails at USD 73,000 in the USA, serving the higher end of the luxury car segment.

Prior to the introduction of the Model 3, Tesla adopted a strategy of niche marketing, (Iacobucci 2013, p. 28). Tesla had historically targeted a very narrow segment in the motor vehicle industry; in that Tesla served consumers with very high disposable incomes that sought environmentally sustainable electric vehicles. The narrow segment that Tesla served is evident from the fact that there are currently, in 2016, only about 50,000 Tesla vehicles on the road worldwide (www.teslamotors.com /about) even tough Tesla was founded in 2003.

Model 3’s New Targeted Segment – The ‘Mass Market’?

Tesla Motors recent Model 3 unveiling event on 31st March 2016 carried the headline of ‘accelerate the world’s transition to sustainable energy’  (https://vimeo.com/161138986). By 7th April 2016 there were 325,000 pre-orders for the new Model 3 from across the globe (www.nytimes. com /2016/04/08).

According to Tesla, the Model 3 is Tesla’s first ‘mass-market affordable vehicle’ with zero-emissions priced at USD 35,000 (www.teslamotors.com). Though by 7th April 2016 there were 325,000 orders for the Model 3, the price tag of USD 35,000 in the USA market tends to attract consumers at the entry-level of the luxury car market rather than the ‘mass-market’ that Tesla is pushing in its marketing. It needs to be noted that there are observers that hold the view that ‘luxury today is neither a necessity nor necessarily expensive. It can be mass market’ (Yeoman & McMahon-Beattie 2005, p.321).

Segmentation of car buyers in terms of their disposable income is a significant consideration (Iacobucci 2013, p. 29) The BMW 3 series (www.bmwusa.com) and Mercedes-Benz C-Class (www.mbusa.com/ mercedes) entry-level sedans retail between USD 33,000 to USD 40,000. The Tesla Model 3 is being advertised at USD 35,000 and is aimed at the entry-level of the luxury car market in the USA.

The other important segmentation base that is relevant for Tesla in its mission to accelerate the world’s transition to sustainable transport’  (www.teslamotors.com/about) relates to consumers psychological traits (Iacobucci 2013, p. 30) with respect to their attitudes towards environmental sustainability. The Model 3 is being marketed as a long range electric vehicle with performance set to match or exceed the BMW and Mercedes-Benz automobiles in the USD 33,000 to USD 40,000 price range. The Model 3 has been positioned to be both eco-friendly and a high performance vehicle, accelerating from 0 to 60 mph in under 6 seconds. Tesla is targeting eco-friendly consumers who may fall within the lower end of the luxury car market segment. These car buyers may be willing to forgo the ‘purr’ of an engine and switch to a no emissions, high performance vehicle. With a growing global middle class, driven by higher education and disposable income in China and India, luxury can be mass marketed (Yeoman & McMahon-Beattie 2005, p.321).

The New Tesla Motors

Tesla is continuing to target the electric car segment within the motor vehicle industry; with the exception that is now targeting a larger range of that segment.

Tesla is pursuing a depth strategy (Iacobucci 2013, p. 38) of serving a larger range of the electric car segment by introducing a mid-priced electric vehicle. Tesla’s previous models were only available at significant premiums.

The targeted segment is expected to grow considerably due to increasing consumer awareness of environmental sustainability. The segment is also expected to realise profit growth from lower costs of producing electric car batteries due to economies of scale from increasing sales volume.

Tesla has the resources and technological advantages to sustain competitive advantage over its competitors due to Tesla’s significant research and development in electric vehicles since 2003.

References:

Iacobucci, D 2013, Marketing Management (MM4), Student Edition, South-Western, Cengage Learning, Mason, Ohio.

Yeoman, I & McMahon-Beattie, U 2005, ‘Luxury Markets and Premium Pricing’, Journal of Revenue and Pricing Management, vol. 4, no.4, pp. 319-328, doi:10.1057/palgrave.rpm.5170155