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38444773

Module Title:

Mastering Metrics

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Diploma

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Brighton

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ASSIGNMENT COVER
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TABLE OF CONTENTS

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(1) Identify and explain the role of marketing metrics in the context of marketing [...].
Various definitions of marketing exist but for the purpose of the chosen organisation and the
context of marketing metrics this definition is most relevant: Marketing is so basic that it
cannot be considered a separate function. It is the whole business seen from the point of
view of its final result, that is, from the customers point of view. (Drucker, 1954, p.38-39)
Drucker, generally acknowledged to be the father of the modern marketing management
concept (Webster, 2002), is saying that marketing should be seen as a business philosophy,
and that business should be based around satisfying the customers desires.
A metric can be defined as a measuring system that quantifies a trend, dynamic or
characteristic (Farris et al., 2010, p.1). Metrics have become increasingly important in
recent years as companies face increasing pressure to demonstrate financial returns across
all areas of business. Measuring the performance of marketing also allows the marketer to
overcome the traditional view of the discipline its perceived lack of accountability.
Marketing metrics have risen in significance due to the importance of managing marketing
data in order to make effective marketing decisions. Understanding a range of measurement
techniques can enable the marketer to create marketing insights to support and inform
strategic decision making. Metrics has the ability to describe the analysis and improvement
of the efficiency and effectiveness of marketing spend with the ideal being an optimal
Return on Investment (ROI) that has the potential of securing future marketing budgets. As a
result, metrics can be used to prove value and demonstrate the contribution of marketing to
the organisation as a whole.
Traditionally long established firms in manufacturing sectors generally have corporate
cultures that encourage product orientation. The emphasis being on keeping costs low and
maintaining production efficiencies; Fordingbridge were no different. The company has
however recently overseen a major change in organisation management. This change has
seen a large organisation culture shift that was desperately needed to bring the company in
line with the modern day business environment.
Today, Fordingbridge understands the value of both a product orientation and market
orientation working synonymously (ensuring the product remains of high quality while
targeting the best markets effectively). In todays competitive world its more important
than ever to put the customer at the heart of the business and implement a market
orientated strategy; by focusing on the product side of things too, Fordingbridge can ensure
their products also remain of a superior quality.
Due to the companys traditional manufacturing background, Fordingbridge are successful at
implementing the 4Ps Product, Price, Place and Promotion. The organisation failed to
adapt to changing market conditions, resulting in aged management characteristics and a
failure to address the additional 3Ps People, Process and Physical Evidence. New
management recognises the importance of marketing; which is evident in a 3 year business
plan.
Successful marketing (marketing that helps the business to achieve its strategic goals)
depends on aligning everyone in the organisation behind a customer first orientation.
(CIM, 2014, P.14).

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Prior to the management change marketing was undervalued at Fordingbridge as a business

function; a trait that can still be seen across some areas of the business today. To the
companys advantage, present management is pro-marketing and understands the business
functions potential impact on the companys future.
Fordingbridge holds an ambition to establish a sustainable business model for the long term,
although cross-functionality between departments and the implementation of metrics are
still in their infancy. Metrics or ROI are rarely used to inform decisions at the present time.
Prior to new management being installed, Fordingbridge did not have individual personnel
focusing on marketing activities alone; marketing activities were spread across departments.
This was most likely a great contributor to the organisations product orientation traits and
proves the organisations opinion of marketing as a business function.
Today, the sole marketer at Fordingbridge must make decisions whenever they perform a
marketing activity. The marketer is to continuously decide what is to be done, who is to do
it, how it is to be done and when and where is the best time to implement an activity. The
marketer works in close collaboration with the Managing Director, who ultimately signs off
any financial investment made.
Fordingbridge employ a traditional horizontal hierarchical team structure (Appendix B). The
companys respective departments very much work in silo meaning that allegiances form
up and down the hierarchy rather than across departments or to the organisation as a
whole.
Discuss the relationship between marketing and the other business functions [...].
The company operates out of a single site in Arundel, West Sussex. All business functions are
housed under one roof including production; very much promoting future cross-functionality
between all departments (although this does not happen in practice).
Sales
As mentioned, a divisional hierarchal structure results in marketing and sales working very
much in silo. Sales remain close to customers and the market and marketing forms a more
strategic focus for the business. Fragmentation occurs, and although never in conflict, the
relationship lacks collaboration and co-ordination to the detriment of the customer.
While the marketing department forms a strong and focused strategic view of the
companys future, sales lags behind and focuses on the here and now.
Finance
The marketing department holds a non-existent relationship with the finance department.
The marketing budget is released at the tail end of a year and no accountability is needed for
individual marketing activities, rather just marketing as a whole. This is most likely an effect
of previous managements absent view of marketing as a business function.
Drawing Office and Production
Fordingbridge products seem very technical in nature and comprise of many components,
each with their own technical diversity. Commercial software is used for the computer aided
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design of the companys structures. Proficient promotion of structures and their individual
features is essential to standing out from our competitors and creating optimal customer
satisfaction. The drawing office at Fordingbridge very much hold a tribal mentality and fail to
provide the marketing department with any relevant product information, damaging the
customer experience and the company as a whole.
Shareholders
The company shareholders hold the traditional view of marketing and its lack of
accountability. Therefore shareholders only have a desire to see profitability metrics.
Explain how effectively marketing metrics are currently utilised [...].
In any commercial organisation the overriding objective is likely to be profit, and
Fordingbridge is no different. Corporate financial metrics are utilised but with no relation to
individual marketing programme performances. More so, due to the company being
predominantly product orientated, the product and the current market dynamics are seen to
directly impact performance. The recent drop in turnover for Fordingbridge since 2010 (see
organisation summary), has and will always be directly related to the recession. Although
this is most likely a major factor, the re-alignment of marketing and its financial efficiency
during the recession may have resulted in a different outcome.
With cross-functionality lacking at Fordingbridge customer profiling, satisfaction and loyalty
metrics are not utilised to their full potential. Fordingbridge has historically satisfied the
majority of customers due to its superior product and service to that of its competitors. This
has most likely resulted in customer metrics not being very high up the agenda. It is also
worth noting that the company uses a standard CRM system that does not promote crossfunctionality, particularly between marketing and sales.
With the implementation of a new website at the beginning of August 2014, Fordingbridge is
beginning to take into consideration digital metrics and notice the impact they can have on
wider marketing metrics. For example, measuring website users by source/medium has
informed the company that sessions from organic search greatly overrides sessions from
email shots; resulting in a greater emphasis on inbound marketing for 2015.
Fordingbridge is active in documenting enquiry rates and the conversion rates of its sales
persons although the emphasis is predominantly on quantity rather than quality. This is most
likely a product of the current lack of individual marketing metrics. Due to the companys
CRM system and lack of cross functionality between business functions this data is rarely
utilised or used in tandem with other marketing metrics to find insights into the markets the
company work within.
Although marketing is starting to be valued as a business function some areas of the
company still lag behind this is most likely an effect of the intense product orientation
culture the company have had. Marketing thinking must permeate the entire organisation.
Developing an effective marketing plan, in close collaboration to the business plan, will
require effective relationships with other functional areas of the business. Once the
company values marketing throughout the organisation and cross-functional relationships
begin to form, metrics can be utilised with greater effectiveness.

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(2) Identify and evaluate the key metrics which are relevant to your chosen organisations
main marketing operational areas [...].
The use of performance evaluation data for Fordingbridge can be used to demonstrate the
value of marketing analytics to the wider business community.
A common question asked by senior managers is: what measure can I use to
determine if my companys effective? The answer to this is there is no single measure
that accomplishes this. Companies develop their own organisational DNA, including
vision, strategies, corporate culture, hiring practices, products and customers. No
two companies are identical...
(Davis, 2014).
Although a mature company, Fordingbridge is still in its infancy in measuring marketing.
Current management has a market orientated vision but business functions still lag behind in
the application. Such a culture shift understandably takes time. With the above in mind, the
major areas of marketing metrics discussed are:
Corporate Financial Metrics
Marketing plans must align with overall corporate business strategy while also providing
specific information about customer needs
(Davis, 2014).
Understanding marketings role in the overall corporate business strategy includes paying
close attention to corporate level measures. Metrics and measurement techniques allow you
to interpret relevant insight and make informed strategic decisions ultimately lending to
financial success.
Although this essay will not go into individual corporate financial metrics, an integrated
approach of operational metrics with financial metrics allows the marketer to gain a
strategic view of the impact each metric has on corporate measures.
Customer Metrics
Marketing plans must align with overall corporate business strategy while also providing
specific information about customer needs
(Davis, 2014).
A key expectation of marketers is to clearly analyse and describe the markets they are
targeting, therefore lending to promotion. A market oriented vision at Fordingbridge leads to
three customer metrics being analysed below. Without understanding the customer and the
markets a company wish to enter into will result in undesirable operational metric data.
Operational Metrics
The main operational marketing metrics are related to the efficiency and effectiveness of
marketing activities, including how much they cost and the return on investment in them.
Operational metrics can be a powerful tool for mapping performance against corporate
goals and key performance indicators that have been agreed by management hence its
dominance in the metrics chosen.
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Metric

Benefits

Disadvantages

Evaluation

Fairly broad metric and not so detailed.

Net Sales Contribution

Good starting point for marketing infancy

allowing the marketer to determine the most
profitable audience.
Can be measured against marketing plan.

Valid due to diverse markets but lack of depth

reduces applicability.

Discover a segments profit potential.

Net Marketing Contribution, ROS and ROMI
Utilised for marketing planning and review.

Marketers need to adjust value proposition.

Segment individualisation across campaigns.
Different lifecycle stages.

Valuable due to its ability to cross examine

product and market in conjunction.

Need to factor in direct and indirect costs.

Quality of enquiry is variable.
Evaluation should be based on goals.

A diverse metric but can be unreliable, reducing

validity.

Marketing Cost Per Unit

Can be utilised for a range of marketing activities

and ROI calculation can determine a campaigns
success.
Determine customer profitability.
Discover a products maturity.
Effective with benchmarking.
Examine effective use of budget.

Not a lot of depth and can be difficult to

categorise individual product marketing.

With innovation and new products in the future,

as stated in the companys business plan, could
prove valuable.

Response Rate

Determine effectiveness of campaigns.

Simple and effective and great for direct
marketing.

High response rate reliant on many variables:

Data list
Understanding the audience
Offering
High conversion rate reliant on many variables:
Appropriate price
Customer service
Comparison to competition

Valid, reliable and applicable for digital

marketing but not so valuable for traditional
forms of marketing.

Segment Profitability

Cost Per Enquiry

Conversion Rate

Gross Page Impressions

Click Through Rate

Can measure efficiency of different business

functions.
Promotes transparency and easy correlation to
sales funnel.
Has the ability to create sales and marketing
fusion.
Cross functional with many other metrics.
Can go into great detail.
Measure acquisition, audience and behaviour.
Determine effective SEO.
Can determine success across range of digital
platforms and allows effective conclusion as to
why a campaign has been successful.

Valuable when used in conjunction with

response rate and has similar limitations to the
response rate metric.

Can be confusing, hindering effectiveness.

Valuable for understanding search engine

optimisations effectiveness, Fordingbridges
main source of new customers.

Has decreased over the years, Avg. CTR <1%

Does not inform the marketer of a prospective
purchasing customer.

Extremely applicable as covers Fordingbridges

two main sources of new customers, email and
search engine optimisation. Can also be used to
determine the effectiveness of content.

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Using the chosen key metrics which are relevant to your chosen organisation [...].
Net Sales Contribution
Net sales contribution calculates the financial sales contribution of an individual segment
compared to total sales for all segments (Appendix B).
Fordingbridge fails to delve into the adequate depth needed for segmentation, resulting in
broad messages sent to the majority. Efficient segmentation identifies the needs of the
customer, putting the customer first. As a company in its infancy and progressing to greater
market orientation, this metric will help the marketer understand each segments portion of
total sales. Shaping the underlying factors of each segments contribution can be measured
against the marketing plan and help the marketer make future informed strategic decisions.
Segment Profitability
Segment profitability allows marketers to measure whether an attractive customer segment,
from a revenue standpoint, will also be profitable (Appendix B).
Fordingbridge has a range of different products that operate across different regions in the
UK. Given the existence of many products and many different areas of operations, it is
unlikely that over time all products or areas will be profitable. Breaking the market into
smaller groups of customers who share common characteristics and/or have similar needs
allows marketing to be tailored to those specific groups. Fordingbridge can then target
segments that are best addressed by the companys core competencies and capabilities and
those that can return the most profit.
Net market contribution helps the marketer understand a segments profit potential and
general attractiveness. Return on Sales (ROS) relies on net marketing contribution to
describe sales return and can be an indicator of the efficiency of the businesses operations.
ROI measures the total return on marketing investment. Segment profitability takes the Net
Sales Contribution metric to another level, not only going into more depth with regards to
the review of segments but allowing the marketer to plan the profitability of segments. This
can be vital in helping marketers justify future budgets and expenditure.
Cost per Enquiry
This metric refers to the amount of money paid for a marketing activity to gain a single
enquiry (Appendix B).
At Fordingbridge enquiries can come through a number of different sources including email,
telephone or being present at an event. This metric tells marketers the rough costs of each
enquiry but if they would like to increase accuracy, the marketer must factor in both the
direct and indirect costs. Although a simple metric, the great benefit is in its ability to cross a
range of inbound and outbound marketing activities and determine a broad effectiveness.
Marketing Cost per Unit
Marketing cost per unit measures the amount of money spent on marketing in relation to
the number of units sold (Appendix B).

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This metric allows the marketer to determine the effectiveness of marketing activities and
can be used effectively against benchmarks. The marketer can use this formula to determine
the success of a product; the marketing cost per unit should decline as the product matures.
An increase in this metric can be an indicator of a loss in market share to competitors or that
consumers are losing interest in your product.
Response Rate
The response rate refers to the percentage of people who respond to an offer relative to the
number of people who received the offer (Appendix B). This means leads > enquiries (when a
lead is defined as an impression).
Fordingbridge has an active involvement in direct marketing therefore this metric is of good
relevance. The marketer desires as high correlation as possible between advertisements and
total response. A good response rate relies on: clear objectives, a high-quality data list of
target customers, a relevant message, the effective choice of a tangible benefit (if present),
and the use of the best available medium to target the customer most effectively.
Conversion rate
The conversion rate refers to the percentage of prospective customers or visitors who both
respond and buy a companys products (Appendix B). This means enquiries > orders (when
an order is defined as a sale).
Conversion rate can be an effective tool to discover the efficiency of business functions
within a company. Ultimately this can lead to greater transparency within Fordingbridge and
contribute to the greater dominance of a market oriented culture. Similar to the response
rates limitations, the conversion rate is highest when the marketer is clear in his objectives,
target audience identification and message design. Like response rate, the marketer must
segment audiences effectively and resist the temptation to develop a one size fits all
campaign. This also relies on company performance in its other functions the salesman,
whoever handles the enquiry after the marketing has performed its role of gaining the
enquiry.
Gross page impressions
Gross page impressions refer to the measurement of website traffic volume (Appendix B).
Web analytics services provide marketers with an array of analytics tools that form reports
based around their audience, acquisition and behaviour.
Acquisition reports provide analytics on how you acquire users and their conversion
patterns. While its important to understand the relative volume of users that you acquire
per channel, its more important to understand the quality of traffic each channel delivers.
This can also be measured for individual campaigns and source/medium (i.e.
Google/organic).
Click through rate
The Click Through Rate (CTR) measures how many customers click through on a link after
viewing it (Appendix B). The CTR allows the marketer to determine the effectiveness of its
content which could be a call to action within an email or a meta title and description of a
URL.
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Commentary
Enquiry Figures Year-on-Year allows the marketer to understand the volume of enquiries
broadly and set relative benchmarks for growth. Focusing on this metric should not be to the
detriment of finance metrics. Ultimately, finance metrics are what contribute to the bottom
line. % Cost vs. % of Enquiries allows the marketer to determine the effectiveness of
marketing activities. Here we can determine what activities result in the greatest return on
investment; Past client (outlining the need for a perfect customer experience), Search Engine
and Email. All of these activities rely heavily on Fordingbridges digital presence.
Digital
Users, sessions and pages per session (not shown) allow the marketer to understand the
relative volume of users, whether they were new or returning visitors (sessions - users) and
their engagement on the site. They are very brief metrics but when compared to
benchmarks (previous yearly data for the context of Fordingbridge) and can provide valuable
insight into the market and Search Engine Optimisation (SEO). If the marketer uses the
metrics above in conjunction with the web facility Google Trends, greater insight into the
demand of certain products and the behaviour of the customer can be obtained.
While it is important to understand the volume of users online its more important to
understand what channels those users have come from. Then the marketer can start to
determine the effectiveness of campaigns and marketing activities. For Enquiries by Sector,
organic search provides Fordingbridge with 60% of its users, outlining the importance of SEO
for new customers. Email, referral and social make up around 17% of visits. With the
website, SEO and email forming the majority of enquiry source and sessions source,
Fordingbridge follows the trend of a typical b2b business (Schulze, 2013, p.5). Despite this
there is vast room for improvement in email, referral and social stats.
Campaigns can be one of the biggest bets a marketer makes, investments can be made
without any guarantee of ROI. Previous campaigns can provide good benchmarks for future
expectations to provide some signals for success. Sessions by Campaign can show you the
relevant sessions for each individual email campaign, here the focus is on traffic to the
Fordingbridge homepage. Although not all email messages are intended to result in a
purchase, most messages have some call to action. Email marketing results in 9.8% of total
channel sessions after organic search and direct sessions, completing the top three sessions
by channel. This shows its importance as part of the marketing mix, but the figure suggests
improvements could be made in this marketing activity. What really makes email vital to
Fordingbridge is its marketing return on investment.
Impressions are the number of times your site appears in Google search, clicks refer to the
number of times someone clicked on your site in those search results and CTR (click through
ratio) tells the marketer the proportion of clicks in relation to impressions. The Search
Queries report in Google Webmaster Tools allows you to see the queries that generated the
most impressions for your website URLs. Utilising this report the marketer can identify
search queries for your site of most relevance and which have good average positions. If a
query has a good number of impressions but a poor click through rate, improved SEO could
lead to more traffic. As Fordingbridges main source of website traffic is through organic
search (60% for November), and main source of enquiries organic search (21% for
November), understanding the performance of the websites SEO is of great importance;

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comparing impressions and CTR allows the marketer to identify potential areas of
improvement (Appendix C).
Metrics can be used in conjunction with each other to gain greater insight. This is true for
broader marketing metrics such as financial and operational metrics and analytical metrics,
such as source/medium.
From the metrics chosen, response rate and conversion rate, and impressions and CTR are
two immediate examples from the metrics used that can be used in conjunction with each
other to gain further insight into marketing at Fordingbridge.

Financial and operational

Taking an integrated approach to financial and operational metrics allows the marketer to
gain a strategic view of each set of metrics on each other and their role in the overall
business strategy. Corporate financial measures derive their results from marketing related
activity, whether it is customer development, product, price, place or promotion
additionally marketers can add credibility to their plans if they demonstrate a good ROI.
Channel metrics and profitability
Active in a variety of different online and offline channels, marketers analysis of relative
impact of which channels deliver the greatest ROI can gain greater insight for future sales. To
measure the impact of multi channel marketing, marketers must make clear decisions about
what to measure and its relation to objectives set in the outset. For example,
Fordingbridges main channels contributing to website traffic are organic search (60%),
direct traffic (22.6%) and email (9.3%).
Digital metrics can be effectively combined with offline metrics to provide multi channel
measurement solutions and dashboard reports showing how a selected combination of
marketing channels is performing for any marketing activity such as an advertising
campaign. The optimum combination of channels will drive traffic and/or have an impact on
sales.

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(3) Present your evaluation of key elements and trends likely to face [...].

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Identify the monitoring and management responsibilities [...].

Having identified a range of data and facilitated a series of marketing metrics relevant to
Fordingbridge the focus, will now be on key trends likely to face the company in the near
future. Each focus is clearly outlined with subheadings.
Managing return on marketing investment
In order for Fordingbridge to capture value from customers the marketer must be efficient
at measuring and managing the return on their marketing investment. Metrics can help in a
variety of ways allowing an understanding of customer behaviour, to determine the effect
of their marketing activities, to demonstrate the impact of marketing on the overall business
strategy and to enable them to make more informed decisions. If the marketer understands
the use of advanced metrics and analytics it has the potential to greatly increase Return on
Marketing Investment (ROMI) and foster organisational growth.
Whilst integration of metrics at Fordingbridge is highly desired, their use can bring issues.
Ranging in difficulty to measure, the marketer may be susceptible to measure easier
elements rather than the most relevant a balanced scorecard approach to metrics should
be taken (CIM, 2014, p.120).
Additionally, the metrics used should not be overly analytical and finance based financial
metrics are not the only yardstick marketers should measure their business by (CIM, 2014,
p.120). This can result in a lack of emphasis on the customer.
Importance should be placed on choosing and communicating a limited number of metrics
for Fordingbridge. The marketer should also value effectiveness over efficiency; metrics may
be efficient but are they the right ones? This goes back to doing the right things rather than
doing things right.

Aligning business objectives, strategies and metrics

Fordingbridge has clearly defined business objectives which are communicated throughout
the organisation in the newly devised business plan. Functional teams and individuals are
encouraged to align their own goals with them. A clear strategy understood wholly by the
marketer with clear metrics aligned will help implement what is expected of them.
With so many metrics to choose from, the marketer must choose ones that are:
1. Most clearly linked and related to objectives
2. In keeping with how the organisation or specific functions within it measure the
success of activities, strategies and objectives.
It is vital that functional and individual goals are aligned to the overall objectives of the
business.
Creating customer value
A traditional manufacturing organisation that has encouraged product orientation,
Fordingbridge now understand the value of product and marketing orientation working
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synonymously. Todays marketers must be good at creating customer value and managing
customer relationships. They must attract targeted customers (segmentation) with strong
value propositions. This is further enhanced by delivering superior customer value and
effectively managing the company-customer interface.
Todays outstanding marketing companies understand the marketplace and customer
needs, design value-creating marketing strategy, development integrated marketing
programs that deliver customer value and delight and build strong relationships. In return
they capture value from customers in the form of sales, profits and customer loyalty.
(Kotler, 2009, p. xxii).
Today, a key expectation of the marketer is to clearly analyse and describe target markets.
Having a detailed plan of how to attract and develop profitable customers, including
customer acquisition costs and the financial impact customers have on the business is vital
to success at Fordingbridge. It is an area that could be improved at the organisation, hence
the choice of Net Sales Contribution and Segment Profitability present in this paper.
Creating a working practice that facilitates the use of metrics
Sales and marketing fusion
In 10 years from now there will be no such thing as separate sales and marketing
departments. There will be one team compromising two interdependent disciplines
(CIM, 2011, p.3)
A responsibility of revenue generation and improving the interface with customers are
probably the two greatest aspects of commonality in the separate functions mentioned. As
noted by Kotler (2008), extensive evidence shows that aligning the two departments leads to
better productivity, reduces duplication and wastage, improves staff motivation and
increases customer satisfaction.
Additionally, a strong case for joint planning is put together in Alignment of Sales and
Marketing (2013). In this study, where 500 companies were surveyed about marketing and
sales alignment, evidence shows that marketing qualified leads closure lifts by 56% and
marketing qualified leads acceptance is 31% better when sales and marketing plan together.
Furthermore, marketings contribution to total revenue lifts a healthy 62%.
Fordingbridge treat sales and marketing as separate entities. A much stronger emphasis is
placed on sales due to the organisations traditional manufacturing history. This leads to a
damage in customer interest and restricts the company as a whole.
Integrating the functions as unified departments puts the customer at the centre of
operations and has been proven to lead to better performance and increased employee and
customer satisfaction. Successful integration relies on, in the case of Fordingbridge, both
functions reporting to the Managing Director.
Effective team structures
Fordingbridge employs a traditional hierarchal team structure resulting in departments
working in silo. Sales remain close to the customers and marketing forms a more strategic
focus.
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A matrix organisation crosses functional divisions with horizontal teams (Appendix D). Cross
functional teams are comprised of representations from key areas. Team members are given
responsibilities that require them to work with members of other functions while retaining
allegiance to their primary function.
A matrix is not just an organisational structure; it is also a way of approaching the
challenges facing the business. It allows complex tasks such as implementing, using and
managing marketing metrics to be tackled in a highly collaborative, integrated fashion,
encouraging the cross fertilisation of ideas and a high degree of co-ordination
(CIM, 2014, p. 24)
Matrix structures support workflow management and lead to better decision making.
Bringing together the varying perspectives from different functions reduces the power of
individual department specialisations and allowing the company to see the bigger picture.
For example, marketing would greatly benefit from the sales teams knowledge of the
customer; from the design teams expertise of the structures designed; from productions
attention to detail of the components of a structure and from the finance departments
proficiency in corporate financial measurement.
Metrics, and therefore return on investment, work best with multiple input. Effective
implementation of metrics and the adding customer value heavily relies on sales and
marketing fusion and cross-collaboration between departments.
Recommendations
A traditional manufacturing company, Fordingbridge has been ignorant to the ever-changing
business environment. It has assumed that work would find it, rather than seeking the work
out. A critical point has been reached where an increase in competition and greater
expectations from the customer requires drastic change.
Transformation is happening under the new management with the ambition to grow the
company, although this understandably takes time. Such foresight was evidently absent
under previous management. Internal knowledge of the companys 3 year plan must be
clear and concise so that it can be delivered effectively.
Individual business functions understanding the importance of a market orientated vision,
and the subsequent focus on adding customer value, will create greater impetus to work
more collaboratively with the marketing department.
As a result, when cross functional relationships begin to improve, metrics can be utilised
with greater effectiveness. The company would also hope to thrive under improved
department relationships.
A focus on the main marketing channels that contribute to enquiries (website, SEO and
email), and therefore sales, will enable a selection of relevant metric data to inform future
strategic decisions.
This is best reviewed in a monthly meeting with various business functions (particularly
marketing and sales) where planning for the forthcoming month is also mapped out. This

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meeting should focus exclusively on the ROI of differing marketing activities from the
previous month, before utilising the insight gained for the month ahead.

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BIBLIOGRAPHY
AMBLER, T. (2003) Marketing and the Bottom Line. Harlow: Prentice Hall
CIM (2011) Marketing and Sales Fusion [Online]. Available from:
http://www.themarketer.co.uk/knowledge-centre/downloads/marketing-and-salesfusion/ [Accessed: 09/11/2014].
CIM (2014) Mastering Metrics: CIM Diploma in Professional Marketing: Official
Module Guide. Maidenhead: CIM.
DAVIS, J. A. (2005) Magic Numbers for Consumer Marketing. Asia: John Wiley &
Sons.
DAVIS, J. A. (2013) Measuring Marketing: 110+ Key Metrics Every Marketer Needs.
2nd Ed. Singapore: John Wiley & Sons.
HUBSPOT. (2014) State of Inbound 2014. Cambridge, MA: Hubspot.
KOTLER, P. and KELLER, K. (2006) Marketing Management. 12th Ed. New Jersey: Prentice
Hall.

KOTLER, P. et al. (2008) Principles of Marketing. 5th Ed. Harlow. Pearson Education
Limited.
MARKETO (2013) 2013 Sales and Marketing Alignment Study [Online]. Available
from: http://www.marketo.com/reports/2013-sales-and-marketing-alignment-study/
[Accessed: 21/12/2014].
MARKETO (2014) The Secret to Sales and Marketing Alignment [Webinar]. Available
from: http://www.marketo.com/webinars/the-secret-to-sales-and-marketingalignment/ [Accessed: 29/12/2014].
SCHULZE, H. (2013) B2B Lead Generation Trends 2013. [Online]. Available from:
http://www.slideshare.net/hschulze/b2-b-lead-generation-report-2013 [Accessed:
30/12/2014].
STEVENS, R. P. (2013) 5 Essential B-to-B Direct Marketing Metrics [Online].
Available from: http://www.ruthstevens.com/articles/5-essential-b-to-b-directmarketing-metrics/ [Accessed: 18/11/2014].

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APPENDIX 1

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APPENDIX 3

Net Sales Contribution

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Sales from segment

Total sales from all segments

Segment Profitability
= { x x ( x )}

=
x 100%

=
x 100%

Cost per Enquiry

=

total promotional cost

number of leads generated

Marketing Cost per Unit

total marketing expense in time period

Total units sold in time period

Response Rate

number of people who responded to the ad

number of people exposed to the ad

Conversion rate

number of people who respond to the ad and buy

number of people who respond to the ad

Click through rate

total number of clicks

number of impressions

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