Analyzing the performance of your marketing mix is very important if you want your company to succeed in achieving its goals. Measuring the performance of your marketing mix should be done yearly, at the end of a fiscal year, before planning and budgeting.
Why Do You Have To Evaluate the Performance of Marketing?
Companies analyze the performance of their marketing mix to improve their marketing strategy and to run successful marketing campaigns that can lead to increase their brand awareness, to strengthen the relationship with their stakeholders, to educate their customers, and to reach their goals. In order to reach their goals, the company’s objectives, including the marketing objectives, have to be SMART (specific, measurable, achievable, relevant, and time-limited) and the company has to determine what areas of the marketing mix (product, price, place, and promotion) need improvements or modifications.
When creating a marketing strategy and a marketing mix, the company has to establish marketing performance metrics to be able to track their results.
What To Consider When Analyzing The Performance Of Your Marketing Mix?
In order to evaluate the performance of the marketing mix, companies should measure all marketing activities from a time period and include the consumers’ point of view. To accurately measure the performance and effectiveness of the marketing mix, companies should be able to quantify their results using a common scale.
How To Analyze The Performance Of Your Marketing Mix?
When analyzing the performance of their marketing mix, companies use various methods that allow them to evaluate the performance metrics, also known as key performance metrics or KPIs.
In order to connect the marketing performance of the company to the financial performance of the company, companies also analyze the return on investment or ROI, the return on marketing investment or ROMI and the return on marketing objectives, ROMO.
These metrics allow marketers to evaluate the performance of the marketing mix and of the marketing strategy overall against the company’s goals.
KPIs are not only important for marketers but also for the board of the company, the production department, and the sales department because they can lead to better strategies and improvement of products and services.
Companies that want to stay on top of their game do more than analyzing the return of investment and the performance of their marketing mix, they also analyze the return on marketing investment (ROMI) and the return on marketing objective to be sure the marketing investment will generate the best results.
When they have access to these metrics, companies can adjust their marketing mix and can increase their marketing performance by anticipating the competitors’ reactions, creating a communication strategy that will allow them to build a long-term relationship with their customers, and by knowing how to make the best marketing decisions in the current market conditions.
How ROMI Works?
ROMI goes beyond analyzing the return on investment and the performance of the marketing mix, it allows marketers to analyze brand awareness and customers’ motives which are key components of a successful marketing strategy.
How ROMO Works?
ROMO, on the other hand, allows marketers to analyze the results of the marketing objectives that were not meant to generate sales or profit in the short term. Using ROMO is great for companies that run educational campaigns, CSR campaigns or campaigns that want to change the perception of a product or service. Even though these marketing efforts are not meant to generate sales on the short term, they should be considered when creating the marketing mix or the marketing strategy because their results can impact the sales of other products or services and, when done right, these campaigns can generate more sales for the company on long-term.
How To Be Sure The Performance Analysis Of Your Marketing Mix Is Well Done?
In order to be sure that the performance analysis of your marketing mix is done right, you have to be sure that all the marketing efforts and activities are analyzed, including those activities that are not done for generating short-term sales. Analyzing the performance of your marketing mix should be done on a regular basis if you want to have accurate data and you need to have a measurement system in place. Consistency and a great measurement system are key to obtaining accurate results.