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Main » 2013 » December » 10 » Marketing Success Defined alexander mcqueen skull scarf
12:08 PM Marketing Success Defined alexander mcqueen skull scarf |
| Marketing Success Defined How do you personally define success? High income?
Substantial net worth? A fine home? Peer recognition?On a personal basis, there
are likely almost as many definitions of success as there are people in the
world.In marketing, though, there are just four measurable elements of success:
Profitability, Market Share, Customer Satisfaction and Customer Retention.
Profitability requires little explanation Turn your world for the remarkable alexander mcqueen skull scarf
and let it be another must have in your fashion conscious closet.. The very
reason businesses exist is to make a profit, or generate more revenue than they
pay out. Profitability may be increased by reducing overhead and the cost of
goods sold�or by increasing the price to the buyer.But prices can only be raised
so much. Per the laws of price elasticity, as prices rise, unit sales tend to
decline, as does Market Share; which brings us to our next measure of marketing
success.Market Share, as a measure of success, is important to marketers since
the greater the share, the more stable the brand�s performance is in the
marketplace. A product with 65% market share is a force with which to be
reckoned. A product with 3% share is vulnerable to a variety of market factors
such as competitive pricing, promotions, loyalty to better-known brands and
more. Financial managers understand the impact of Profitability and Market
Share. But concepts such as Customer Satisfaction and Customer Retention are
softer items and tend to be treated as lesser by those managers. Yet, the long
term success and growth of a brand is highly dependent on them. Customer
Satisfaction doesn�t appear on a balance sheet. It can�t be measured in dollars
and cents. It�s measured by the customer�s feelings about a brand. Does the
brand deliver its promise? Is it a good value? Does it bring status to the
owner? Is the customer generally happy with the product? Customer Satisfaction
begets repeat purchases, loyalty, word-of-mouth advertising and, of course,
long-term profitability via Customer Retention.Customer Retention, the final
measure of marketing success, is closely tied to Customer Satisfaction,
Profitability and Market Share. A satisfied customer is likely to remain loyal
to a brand, thus enhancing market share over the long-term, as new customers are
acquired. Retained customers increase the profitability of a brand. In the
course of acquiring new customers, retained customers� purchases can be counted
on for continued profit performance. It�s widely known that it�s five times more
expensive to acquire a new customer than it is to keep an old one
huanghaiyan251. Makes you wonder why marketers don�t generally invest more in
Customer Retention, doesn�t it?Few business organizations focus on all four
elements of marketing success, probably because they�re difficult to balance and
manage as separate items, yet they�re strongly interdependent. The four elements
of marketing success are reasons enough for financial managers and marketing
managers to gain a better understanding of one another�s� disciplines and work
toward the common good of their companies.
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