Academic level – Undergraduate 1-2
Type of paper – Coursework
Topic Title – Key elements of an effective marketing plan
Create a chart/matrix that lists four (4) of the most important metrics/statistics that an organization should analyze before creating a marketing plan, and then briefly describe/detail how each metric/statistic is important to understand in the creation of a marketing plan.
Customer segmentation data is a measure or statistic that businesses should examine before developing a marketing strategy. Market segmentation divides a marketplace into subgroups based on demographics, demands, goals, shared interests, and other psychographic or behavioral characteristics. Marketers understand consumer segmentation to help businesses create initiatives that engage clients and provide favorable outcomes (Udoagwu, 2022).
A common instance of demographic segmentation is age. Marketers may learn a lot about a person’s hobbies and purchasing patterns just by looking at their age. But when combined with one or two additional factors, like gender and geography, it offers much more information. For instance, the interests of a 20-year-old guy living in New York City and a 65-year-old woman living in Miami will differ. In addition, the clothes and apparel industry serves as a good illustration of age-based segmentation. Visit any website that offers both adult and child apparel. The target audience for the youth segment will be viewers in that age range and their parents. On the other hand, there will be an adult model in the adult sector, most likely in the same age range as the kid segment’s parents.
Market share analysis reveals how a company compares to its competitors. Understanding such a thing is a solid indicator that may be used for competitive analysis. Analysis includes detecting market leaders, strategic planning, and many other applications. Tracking market share provides information on industry state, strategy, market development, and competitiveness (Linchpin marketing team, 2023).
For instance, if a company sells $30 million of a product in a year and the market is worth $60 million, the brand would have a 50% market share. Life sciences organizations that used market share as an essential indicator enhanced strategic decision-making, which resulted in greater growth rates (Linchpin marketing team, 2023). Organizations may use market share analysis to make educated decisions regarding growth strategy, resource distribution, and technological advancement.
Customer Lifetime Value (CLV)
CLV reflects the entire income a firm might reasonably expect from a single customer account during their engagement with the company (Linchpin marketing team, 2023). CLV aids in resource allocation, profitability growth, and marketing campaign optimization. Businesses may better manage advertising resources and improve customer retention efforts with the CLV (Linchpin marketing team, 2023).
Let’s take the case of a typical restaurant customer who comes once a month and makes an average purchase of $20 over ten years. The platform may calculate the CLV to determine the average income produced by all users throughout their visits. Therefore, they can allocate marketing resources more effectively and invest in initiatives that promote customer loyalty. According to a 2023 Forrester survey, boosting CLV was a high focus for 85% of life sciences organizations since maintaining existing customers is less expensive than gaining new ones (Linchpin marketing team, 2023). CLV-driven strategies contribute to long-term revenue growth and enhance customer relationships.
Return on Investment (ROI)
Return on Investment (ROI) attributes profit and sales increase to marketing activities. A marketer calculates ROI by deducting an advertising campaign cost from its profit and dividing the result by the total cost (Linchpin marketing team, 2023).
For example, consider a social media advertising campaign for a fashion brand. With the ROI, the company may determine if the campaign’s investment produced enough sales to pay its expenses. The label can continue investing in similar campaigns if the ROI is positive. They might reconsider their targeting, messaging, or platform choices if the ROI is lower than expected. According to a Bain & Company 2022 study, organizations that optimize marketing strategies based on ROI get an average 20% boost in revenue (Linchpin marketing team, 2023). Businesses may make wise decisions about allocating resources and prioritizing their efforts using ROI analysis.
Linchpin marketing team. (2023, June 23). The guide to analytics strategy for life sciences companies. Linchpin SEO. https://linchpinseo.com/the-guide-to-analytics-strategy-for-life-sciences-companies/#key-marketing-metrics-for-life-sciences-companies
Udoagwu, K. (2022, June 22). What are segmentation bases in marketing?. Blog Wrike. https://www.wrike.com/blog/what-are-segmentation-bases/