Individual Marketing Approaches Efficiency Essay
Evaluation of the effectiveness of individual advertising or marketing approaches is one of the elements of assessing the efficiency of a company’s marketing strategy in general. Advertising initiatives have an impact on the success of the enterprise along with pricing, distribution, competition, environment, and other factors. The purpose of this paper is to specify how the effectiveness of individual marketing approaches could be determined and discuss the importance of historical sales data and promotional response data.
The effectiveness of an individual marketing initiative is evaluated based on the benefits it has brought and how much money the company has spent. The manager may employ two strategies, which are to study the economic effectiveness of marketing or to evaluate the communicative effectiveness of advertising (Pride & Ferrell, 2015). The first approach implies comparing sales volumes before and after an advertising campaign and correlating revenues with advertising costs (Pride & Ferrell, 2015).
Evaluation of communicative efficiency includes an assessment of the effectiveness of the media channel and an appraisal of the effectiveness of the message. For example, communicative efficiency may reflect how successfully a particular advertising message conveys the necessary information to the target audience and forms the desired point of view.
Historical sales data and promotional response data may help evaluate the effectiveness of individual marketing practices. In particular, they should be used for specifying the level of sales associated with different marketing scenarios (that is, they are effective in forecasting). For instance, historical sales data may be used to evaluate sales response functions using time series (Pride & Ferrell, 2015). The result the manager will get will reflect the impact of different aspects of the marketing mix on sales (Pride & Ferrell, 2015). In terms of promotional response data, it allows acquiring a customer-centric view of individual marketing practices and calculating the lifetime value.
Thus, it can be concluded that the efficiency of individual marketing approaches may be determined by evaluating the economic and communicative effectiveness of specific initiatives. Based on the discussion, it may be assumed that historical sales data and promotional response data are also helpful in measuring the efficiency of advertising practices. They allow having a customer-centric view and relating the effects of activities on sales.
Pride, W. M., & Ferrell, O. C. (2015). Marketing 2016 (18th ed.). Boston, MA: Cengage Learning.