Mastering Metrics is a 15-credit mandatory module which sits within the suite of Level 6 modules.
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1 Mastering Metrics Mastering Metrics is a 15-credit mandatory module which sits within the suite of Level 6 modules. To gain the CIM Level 6 Diploma in Professional Marketing a pass in both mandatory modules plus one elective module is required. However, each module can be taken as a standalone module to gain a module award. Aim of the module This module examines the importance of managing marketing data in effective marketing decision making. It presents the role of marketing metrics within the organisation and establishes how an understanding of a range of measurement techniques can enable organisations to achieve marketing insights and strategic decision making. It provides an appreciation of how measurement techniques, aligned to business objectives, can establish and determine the effectiveness of marketing activities. It outlines the value of using appropriate data sources to enable effective marketing analysis, and of employing appropriate analytics tools and techniques to ensure effective marketing decision making. Module structure The module comprises three units of two learning outcomes each. Each learning outcome will be covered by the related assessment criteria and will be assessed by way of assignment. The assessment will require submission of a 12-page assignment based on a given scenario and an organisation of choice. The assignment is broken down into three tasks. The learning outcomes and assessment criteria, along with the indicative content, are detailed in the Mastering Metrics module content which follows. Page 1 of 20
2 CIM Level 6 Diploma in Professional Marketing Qualification Specification Please refer to the CIM Level 6 Diploma in Professional Marketing Qualification Specification for all other information relating to the CIM Level 6 Diploma in Professional Marketing including: CIM Professional Marketing Standards The Level 6 qualification structure Who it s for Entry requirements The Modular Pathway Progression Credits and learning hours Modes of study How it s assessed assessment methodology How the assessment is delivered and when How it s graded When are results issued? Module specifications What we mean by command words Suggested reading and resources Transition arrangements Page 2 of 20
3 MODULE CONTENT: MASTERING METRICS (mandatory) Level 6 Credit value: 15 Notional learning time: hours Purpose statement Marketers are faced with an increasing volume and range of marketing data, innovative methods of analysis and new measures of marketing effectiveness. This module will equip you with the ability to selectively analyse different sets of marketing data for insight, and to undertake effective decision making in relation to the utilisation of marketing resources. Assessment Module weighting Work-based assignment LO 1 weighting 15% LO 2 weighting 10% LO 3 weighting 15% LO 4 weighting 20% LO 5 weighting 15% LO 6 weighting 25% Overarching learning outcomes By the end of this module students should be able to: Metrics and analytics Understand the role of marketing metrics Understand the significance of different measurement techniques across a range of market contexts Measuring effectiveness Know the relevant measures of marketing performance Apply marketing metrics to establish the effectiveness of marketing activities Analytics for decision making Understand appropriate sources of data for marketing analysis Utilise various analytics tools and techniques for marketing insight and strategic decision making Page 3 of 20
4 UNIT 1: METRICS AND ANALYTICS Learning outcomes The learner will: Assessment criteria The learner can: Indicative content 1. Understand the role of marketing metrics 1.1 Identify the context and requirements for an organisation to be able to set effective marketing metrics Page 4 of Analyse the working practices and processes that allow metrics to be implemented and used in an iterative manner 1.3 Understand the risk of poorly implemented metrics and communicate examples of this in practice 1.4 Understand the major areas of marketing metrics The alignment of business objectives, strategies and metrics The potential gap between metrics and business outcomes People, planet and profit The importance of marketing metrics Measuring marketing effectiveness Long-term assets and shortterm financials Effective team structures Workflow management Reporting techniques Marketing and sales alignment Key marketing metric models Analytics vs. metrics The dangers of measuring the wrong factors Business failure due to incorrect measurement and metrics The risks of relying on single sources of metrics Margins of error, reliability and service-level agreements within metrics tools Market and brand metrics Customer profiling, satisfaction and loyalty metrics Channel and distribution
5 2. Understand the significance of different measurement techniques across a range of market contexts 2.1 Identify the different types of measurement techniques that may be needed in the different phases of an organisation s life 2.2 Outline and analyse metrics associated with brand, margins, profits, sales and business results 2.3 Outline and analyse metrics associated with customers, products, pricing and channels metrics Margins, profits and profitability metrics Sales funnel metrics Product and portfolio metrics Pricing metrics Promotional and media metrics Digital metrics Business, finance and marketing metrics Start-up, development and maturity challenges Measuring for stakeholders Business-value metrics (owners, shareholders, employees, government, trustees) Strategic metrics Operational metrics Activity metrics Outcome-based metrics Leading indicators Predictive metrics Metrics and brand management Margins and profits Lifetime value Sales force and sales funnel metrics Portfolio management Return on investment Customers, retention, recency and lifetime value Profiling metrics using geodemographics such as ACORN, MOSAIC Customer-service metrics Products, stock and inventory Page 5 of 20
6 management Metrics on pricing strategy and tactics Communication and web metrics Digital metrics Different metrics for different organisational contexts: B2C, B2B, NFP/3 rd sector, SMEs, producers, distributors, retail, online Page 6 of 20
7 UNIT 2: MEASURING EFFECTIVENESS Learning outcomes The learner will: Assessment criteria The learner can: Indicative content 3. Know the relevant measures of marketing performance 3.1 Evaluate the different types of marketing metrics and how they can be applied to help inform business strategy and measure performance against strategy Page 7 of Identify relevant measures, and analyse and communicate suggested responses to improve marketing performance 3.3 Create, justify and communicate metrics-based dashboards that can improve marketing performance Business goals, strategy, marketing metrics and the gaps between them Connecting channel metrics to financial outcomes Strategic metrics: planning components Operational metrics: mix variables Tactical metrics: activities and timings Market and brand penetration Awareness metrics vs. actionbased metrics Return on investment Return on marketing investment Analytics analysis Integrating data sources including big data sets Using and developing balanced/marketing scorecard The challenge of having too much data Management reporting Dashboarding tools Pre- and post-deployment dashboard testing Financial dashboards Brand and market dashboards Product and pricing dashboards Sales funnel dashboards
8 4. Apply marketing metrics to establish the effectiveness of marketing activities 4.1 Understand how different types of marketing metrics can be applied to help inform business tactical activity in an iterative manner 4.2 Plan, analyse and modify marketing activities based on metrics analysis 4.3 Plan and analyse automated techniques for reacting to metrics Channels and media dashboards Integrating multiple metrics into holistic dashboards such as balanced scorecard dashboard Building an iterative process Defining the feedback loop Creating a test and learn environment Assess effectiveness Tracking trends Statistical significance Modelling and forecasting Testing and analysis Supporting changes in the planning and implementation stages Setting dashboard trigger levels Monitoring and management responsibilities Scenario planning and planned reactions Attribution modelling Marketing automation Page 8 of 20
9 UNIT 3: ANALYTICS FOR DECISION MAKING Learning outcomes The learner will: Assessment criteria The learner can: Indicative content 5. Understand appropriate sources of data for marketing analysis 6. Utilise various analytics tools and techniques for marketing insight and strategic decision making 5.1 Demonstrate knowledge of a range of different sources of data for marketing analysis along with identification of their best use, strengths and limitations 5.2 Recommend a combination of different sources, including both online and offline data sources, which can work in combination to help with marketing analysis 5.3 Demonstrate knowledge of how different types of metrics can impact one another 6.1 Recommend the most appropriate and effective metrics approach for a range of types of organisation and situations Strategic data sources Operational data sources Activity data sources Outcome data sources Predictive data sources Online/offline integration Brand research Sales funnel data Sales and marketing integration Primary and secondary research Integrating channel data Dashboards Analytics analysis Product and pricing metrics and their impact Brand metrics and their impact Channel metrics and profitability Promotional and media metrics Service and satisfaction metrics Financial and operational metrics Building metric hierarchies and tracking interactions Business to consumer (B2C) Business to business (B2B) Not for profit Government Start-up Central issues for measurement in context Analysis of metrics and relevance Measurement and accountability Page 9 of 20
10 6.2 Evaluate the strengths and weaknesses of metric analysis and how it can impact strategic decision making 6.3 Understand the latest trends in metrics and communicate their potential impact Benefits and limitations of metrics Analysing different data sources Advantages and disadvantages of real-time data Challenges presented by limited data analysis Statistical analysis Reliance on dashboards Real-time data analysis Tracking social media sentiment to adjust pricing, availability and brand positioning Free and low-cost dashboard tools Technology and platform integration Traditional and digital metric integration Page 10 of 20
11 Sample assessment material The following sample assessment material for Mastering Metrics has been produced to provide a true reflection of the live assessments and should be used as a guide and study aid when preparing for the live assessment. Page 11 of 20
12 CIM Level 6 Diploma in Professional Marketing Mastering Metrics Sample assessment Assignment The assignment comprises THREE compulsory tasks. Task 1 is worth 20 marks. Task 2 is worth 35 marks. Task 3 is worth 35 marks. 10 marks are available for presentation of information. Total marks available 100. Candidate guidance: Answer all tasks The available marks are shown alongside each part of the task 10 marks are available for overall format and presentation of information Read all tasks carefully before attempting them Page 12 of 20
13 Scenario: Market changes, resulting from confidence returning to the global economy, are opening up a range of opportunities within and across markets for the private, public and not-for-profit sectors. This is leading to predictions of growth, both in mergers, and in organisations expanding their products/services as buyer confidence returns. Within your own organisation, or an organisation with which you are familiar, such opportunities are now presenting themselves. Your role is that of a Marketing Manager with identified knowledge and skills in the use of analytical metrics to evaluate business and marketing data. You have been asked to present your analysis using marketing metrics, as a basis on which to assess an opportunity for expansion or merger which is available to your organisation in the same or a related market area. You should select an organisation where you will have access to relevant statistics and financial data that will enable marketing metrics to be applied. Using this organisation, you should be able present their current use of data and how it is used to make marketing and wider business decisions. Therefore it is important you are able to collect appropriate data, identify which data are used to make appropriate marketing decisions, explain how this is used, and be able to use this to demonstrate the impact of marketing metrics on marketing and wider business decisions. Guidance notes This assignment consists of three tasks, but the report should flow as a single whole document. There will be TEN marks available, for the whole report, where candidates will be rewarded for format and presentation of information. While it is helpful to include an introduction and summary in the report, these should be brief, with the main focus being on the content outlined in the assignment brief provided. FIVE marks will be awarded for the organisation summary, which should appear at the end of the main report, using the headings supplied as guidance. Candidates should write this summary in report format rather than bullet format. This is included in the marks allocated to the report in Task 1. Correct Harvard referencing should be used across all tasks. The purpose of this assignment is to equip you with the ability to selectively analyse different sets of marketing data for insight, and to undertake effective decision making in relation to the utilisation of marketing resources. As such you have been asked to select an organisation which will be faced with the real or imagined scenario of a future expansion or merger. Your advice on this decision is needed. To present an appropriate decision you should utilise a wide range of marketing metrics in order to analyse a selection of data gathered. Maximum overall page count: 18 pages Page 13 of 20
14 TASK 1 Assessment criteria covered in Task 1: AC1.1, AC1.2, AC1.3, AC1.4, AC2.1, AC5.1, AC5.3 Please refer to the module specification for assessment criteria details. Marketing metrics relate to a wide range of business areas both within and external to an organisation. In this first section of your report, provide a basis of the theory surrounding marketing metrics and their application, together with a consideration of their role across an entire organisation, and how they are currently applied in your chosen organisation. Required: (a) Using the organisation summary guidelines, provide a background to your chosen organisation. This section should be placed at the end of your report. (5 marks) (b) Identify and explain the role of marketing metrics in the context of marketing and the process of making marketing decisions in your chosen organisation. You should refer to relevant theory within this subtask. (5 marks) (c) Describe the relationship between marketing and the other business functions in your chosen organisation. (5 marks) (d) Explain how marketing metrics are currently utilised in your chosen organisation. You should be able to demonstrate how the metrics are applied. (5 marks) (Total 20 marks) (Maximum page count 4 pages) (1 page of the total 4 pages for this task should be used for the organisation summary) Page 14 of 20
15 TASK 2 Assessment criteria covered in Task 2: AC1.4, AC2.1, AC2.2, AC2.3, AC3.1, AC3.2, AC3.3, AC4.1, AC4.2, AC5.3, AC6.2 Please refer to the module specification for assessment criteria details. This task centres on performance evaluation within your chosen organisation, related to the scenario of the opportunity for expansion or a merger. In addition the use of a marketing dashboard will enable a diagnosis of current business health and assist in making strategic decisions. These decisions are to be made in the context of a possible merger or expansion. Required: (a) Determine the key marketing metrics which are affecting the organisation at this point of potential expansion or merger. Evaluate the impact of these factors on both the marketing decision making of the organisation and at least TWO wider business functions. (6 marks) (b) Analyse relevant data on marketing and business activity related to the identified expansion or merger activity. This should be undertaken using the marketing metrics identified in the previous subtask. (8 marks) (c) Prepare a dashboard of the marketing metric tools used, showing a visual/graphical/numerical representation of the key metrics you have used to help you evaluate the opportunity available. (8 marks) (d) Taking the scenario of an opportunity for expansion or a merger, determine the most appropriate metrics for an evaluation of the opportunity presented. You should consider these both in terms of the strategic opportunity together with the potential outcomes available. (6 marks) (e) Reflect on the data available and used to determine the metrics. Analyse how effective these are in supporting the decision to be made. (7 marks) (Total 35 marks) (Maximum page count 7 pages) Page 15 of 20
16 TASK 3 Assessment criteria covered in Task 3: AC4.1, AC4.2, AC4.3, AC5.2, AC5.3, AC6.1, AC6.2, AC6.3 Please refer to the module specification for assessment criteria details. Having identified a range of data and developed a series of marketing metrics, your report should now present a justified decision about the proposed opportunity for expansion or merger, together with supporting recommendations. Required: (a) Present your decision on the expansion or merger opportunity available to your chosen organisation using your analysis in Tasks 1 and 2 as a basis. Present and justify the advantages and disadvantages of using marketing metrics in making the decision. (8 marks) (b) Recommend a range of relevant further primary and/or secondary research methods which could assist in supporting the expansion or merger decision to be made by your chosen organisation. (7 marks) (c) Recommend a series of appropriate metrics and outline how your chosen organisation can manage the implementation of the expansion opportunity or merger should this recommendation be approved. (8 marks) (d) State the monitoring and management responsibilities required for future decisions. Present your reflection on the appropriateness of using marketing metrics as part of a wider decision-making process. (12 marks) (Total 35 marks) (Maximum page count 7 pages) Page 16 of 20
17 TASK 1 REPORT FORMAT TASK 1 MAXIMUM page count: 4 pages Guidance notes: Use of relevant theory relating to marketing metrics is key to understanding the concepts. As such within Task 1 you should be able to identify a range of different metrics relating to marketing and link these to potential decisions which can be made. The contexts of each organisation will differ dramatically, therefore specific application to the candidate s chosen organisation is essential. In Task 1 you should consider how the marketing and other business functions interact within your chosen organisation together with current use and application of marketing metrics. TASK 2 REPORT FORMAT TASK 2 MAXIMUM page count: 7 pages The purpose of this assignment is to equip you with the ability to selectively analyse different sets of marketing data for insight, and to undertake effective decision making in relation to the utilisation of marketing resources. Guidance notes: In order to present a clear picture of these metrics marketing has developed the approach of dashboarding. This uses a selection of the most relevant marketing metrics represented at the same time, providing a comparator. To develop these you will need to utilise the data you were recommended to collect in the scenario at the start of the assignment brief. These data should then be analysed within this task. Your analysis should offer you the opportunity to select those metrics which will offer the best advice on the expansion or merger opportunity for your chosen organisation. TASK 3 REPORT FORMAT TASK 3 MAXIMUM page count: 7 pages Guidance notes: The final section of your report relates to your identified role within the expansion or merger decision of your chosen organisation. Within this section it is important that you present your overall perspective on the opportunity, together with a justification of your decision based upon the analysis undertaken using marketing metrics in the previous task. It is recommended that you identify additional data and the relevant market research method(s) that would justify your decision. You should consider how any implementation of the expansion or merger in your chosen organisation could be monitored using relevant Page 17 of 20
18 metrics. A consideration of future use of marketing metrics in new business areas is important. All recommendations should be clearly stated and flow clearly from preceding analysis, providing a consistent theme throughout the three tasks of the report. The final subtask is a reflection on the effectiveness of using marketing metrics to assist in evaluating an opportunity, citing an appropriate Harvard-referenced theory. EXPECTED PERFORMANCE/MARKING CRITERIA 50-59% A pass grade will provide a background to the organisation and identify marketing metrics. The consideration of use of marketing metrics is likely to be applied in a basic manner. Pass: Marketing metrics will be identified and data used to evaluate these. Marketing metrics are likely to relate to marketing activity only at a basic level. Some dashboarding will be included. Recommendations will be offered in relation to the marketing metrics used. Implementation is considered and reflection will be present. Basic application of theory supported by Harvard referencing % A merit grade will provide a detailed background to the organisation and identify appropriate marketing metrics. These will be described and applied. Explanation of the use of marketing metrics is likely to be applied to both marketing and wider business functions. Merit: A range of marketing metrics will be identified and appropriate data used to evaluate these. They will be applied with a relevant level of detail which is linked to the decision to be made. Dashboarding will be used. An evaluation will be present linked to earlier sources. Recommendations will be justified and appropriate to the context of the decision to be made. Further metrics for monitoring implementation will be considered. Any reflection on the use of metrics will be appropriate to the situation. Considered applications of theory supported by Harvard referencing. Distinction: 70%+ A distinction grade will provide a detailed background to the organisation and identify appropriate contextualised marketing metrics. These will be described and applied in detail. Explanation of the use of marketing metrics will be applied to both marketing and wider business functions. A wide range of marketing metrics which are operational, tactical and strategic will be used. They will be applied in detail and appropriate to Page 18 of 20
19 context. Dashboarding will be used in depth. An in-depth evaluation covering a range of business/marketing areas will be presented and will be well linked to earlier sources. Arguments will be clearly stated and justified. Recommendations will be well justified and will clearly match the context of the decision to be made. A range of relevant further metrics for monitoring implementation will be considered and justified. Reflection on the metrics available and used/not used will be in depth, including a detailed consideration of future developments in the area of marketing metrics and how these could be useful for the organisation selected. Wide-ranging applications of theory supported by Harvard referencing. OVERALL FORMAT AND PRESENTATION OF INFORMATION Marks: 10 EXPECTED PERFORMANCE/MARKING CRITERIA Pass: 50-59% A report format will be used. Grammar and punctuation will be acceptable. References will be present and in Harvard format. Merit: 60-69% A suitable format will be used; report with contents page and references. The report will have a clear flow between subtasks. References will be appropriate, in Harvard format and relevant to the task, from suitable sources. Distinction: 70%+ A well-structured report format will be used. The report will flow well between subtasks and the different perspectives and arguments will be well structured. References will use a range of academic sources and be in Harvard format. Page 19 of 20
20 Organisation summary To be included at the end of your report. Contents will contribute to the five marks available in part (a) of Task 1. The following headings should be included: Organisation name Type of organisation, for example, profit or not-for-profit, local, national, global and the legal entity Size of organisation in terms of turnover and number of employees The range of products and services provided The customer base, for example, B2B/B2C Competitors Cross-functional relationships within the organisation Other important stakeholders Other relevant information Page 20 of 20
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