Market Potential Amended

Measuring the marketing performance has been a central issue in marketing today and it remains crucial to every organization. If an organization only relies solely on financial performance to measure how well the company has performed, they may lose out a great potential in profiting as they lose out the metrics such as market metrics, customer metrics and competitiveness metrics. As written by Pont & Shaw (2003), sole reliance on financial performance does not arguably reflect the importance of current resource decisions for future financial performance. However as said by Andrea, measuring the marketing performance is not an easy task compare to the financial performance where there is an exact amount such as sales revenues, net profit and percentage of sales. Nevertheless, there is a way according to the author given by Andrea which is the efficiency metrics and program metrics. Because the financial performance metric provide limited insight on how the business or a product is performing in the market, marketing performance metric has to be measured efficiently and effectively. The reason is that it measures the customer satisfaction, customer retention, relative product performances and it is correlated with the profitability. Note that marketing performance is not possible without the right marketing audit and the control. Basically, it means that we had to identify the problem and marketing opportunities as well as recommendation plan to improve the marketing performance of a company. Finally, it has been asserted that the use of non-financial measures may improve managers' performance ratings by providing a more precise evaluation of their actions, as many non-financial measures are less susceptible to external effects than financial ones (Spremann & Gantenbein 2002).

References:

Pont, M & Shaw, R 2003, Measuring Marketing Performance: A Critique of Empirical Literature, Deakin University, viewed 19th September 2012.

Spremann, K & Gantenbein, P 2002, Non-financial Performance Indicators, in Doctoral

Seminar: Corporate Finance (unpublished), University of St. Gallen.