BUSML 7225: MARKETING METRICS Measuring and Managing Marketing Performance and ROI

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1 BUSML 7225: MARKETING METRICS Measuring and Managing Marketing Performance and ROI Professor: Shashi Matta, PhD Classroom: 210 Gerlach Hall Office: 554 Fisher Hall Classes: W 6:00-9:15 PM [email protected] Office Hours: W 3:30-4:30 PM Telephone: (614) or by appointment Required Course Materials Textbook. Marketing Metrics: The Definitive Guide to Measuring Marketing Performance, 2nd Edition, by Paul W. Farris, Neil T. Bendle, Phillip E. Pfeifer, David J. Reibstein, (2010) by Pearson Education, Inc. Coursepack and Carmen Readings. The required readings for this course include articles and cases. Most of these are in a required coursepack (link to purchase through Harvard Business Publishing on Carmen) and the rest are uploaded on Carmen. Students are expected to read the assigned articles and cases thoroughly prior to each class session. Course Objectives Marketing executives face increasing accountability for marketing investments and expenditures. Calculating the return on investment (ROI) for marketing actions and assessing the risk of proposed marketing plans is expected from marketing managers. There is a clear emphasis, more than ever before, on Marketing Metrics and Dashboards. This course is designed with three key objectives Metric fluency: Familiarity with key metrics, and understanding the key drivers that affect competitive advantage and marketplace performance. Metrics for decision-making: The use of metrics to make and justify marketing mix decisions, from a product / brand manager s perspective and from a Chief Marketing Officer s perspective. Linking marketing metrics to financial metrics and developing Dashboards: Understanding how marketing and financial metrics are linked, and being able to implement a marketing measurement program/dashboard for a firm. Course Format: In-class Exercises, CMO-CFO series, Dashboarding Workshop Each class session will consist of a lecture on specific metrics followed by a hands-on exercise with a dataset. Other components include case discussions and current examples of metrics used in different companies. The course will include a guest speaker series (one CMO, one CFO, and a panel of top industry experts in analytics, finance and marketing), and a hands-on workshop on building a dashboard. A course highlight is the team project on developing a metrics dashboard, while working with real data sets from a client firm. Page 1 of 6

2 Evaluation: Graded Components, Grading Scale, and Instructor Expectations Grade Structure 1. Class Participation and Contribution 10% 2. Team Case Analyses (2 Cases, Case #1 & #3, 20% each) 40% 3. Marketing Metrics ATRQ (1 individual submission) 10% 4. Team Project & Presentation: Developing a Dashboard 40% Total 100% Team Case Analyses Case Analyses are due at 5:00 PM on the day that the assigned cases are discussed. Page limit and formatting: 7 pages, single-spaced, Times New Roman 12, with 1 margins on all sides; figures, tables and appendices can take up an extra 3 pages. Please use the dropbox folder on Carmen. Delayed submissions will incur a grade point penalty for every six hours of delay. Marketing Metrics ATRQ (Individual Assignment) This assignment is due at 5:00 PM on week 6. Page limit and formatting: 2 pages, single-spaced, Times New Roman 12, with 1 margins on all sides; figures, tables and appendices can take up an extra 2 pages. Please use the dropbox folder on Carmen. Delayed submissions will incur a grade point penalty for every six hours of delay. Grading Scale GPE GPE A = % 4.0 C+ = % 2.3 A- = % 3.7 C = % 2.0 B+ = % 3.3 C - = % 1.7 B = % 3.0 D+ = % 1.3 B- = % 2.7 D = % 1.0 Please note that grading will be based on relative rather than absolute standards. The average grade for the class in this course will be a 3.6 or lower. Instructor Expectations 1. You are expected to be well prepared for class discussions by thoroughly reading the assigned chapters, articles and cases prior to each class session. 2. Please inform me of any absence in advance, via , unless in case of an unforeseen emergency. 3. Laptops, tablets, smart phones and cell phones need to be switched off for the duration of the class except for workshops and exercises where the use of a laptop is required. Page 2 of 6

3 WEEK ONE Session # 1 Marketing Metrics: Introduction Articles: 1. Marketing Metrics: A Note for Marketing Managers (2014). Michael Stanko and Matthew Fleming. Ivey Publishing. (Coursepack) Session # 2 Using Marketing Metrics in Decision Making Article: Of Metrics and Models (2014). Chapter 8, from Dynamic Customer Strategy: Today s CRM. Jeffrey Tanner Jr. Harvard Business Publishing. (Coursepack) WEEK TWO Sessions # 3 & 4 6:00 PM 9:15 PM Client Project Brief: Team Project on Developing a Metrics Dashboard & Workshop on Visualizing Marketing Data (Tableau) Article: Chapter 1: Introduction Chapter 2: Share of Hearts, Minds and Markets Marketing and Firm Value: Metrics, Methods, Findings and Future Directions (2009). Shuba Srinivasan and Dominique Hanssens. Journal of Marketing Research, 46(3), (Available on Carmen) Page 3 of 6

4 WEEK THREE Session # 5 Margins, Breakeven, and Profits Breakeven, Hybrid Channel Margins, Price per Statistical Unit, Marketing Spending, Profit-based Sales Targets Chapter 3: Margins and Profits Session # 6 Product Portfolio and Brand Metrics Penetration, Repeat Volume, Volume Projections, Compound Annual Growth Rate, Cannibalization Rate, Segment Utilities, Conjoint Utilities, Brand Equity Metrics Chapter 4: Product and Portfolio Management WEEK FOUR Session # 7 Customer Profitability Metrics: Part 1 Retention Rate, Customer Profit, Acquisition and Retention Costs Chapter 5: Customer Profitability (p ) Article: Marketing When Customer Equity Matters (2008). D. Hanssens, D. Thorpe, and C. Finkbeiner. Harvard Business Review. (Coursepack) Session # 8 Customer Profitability Metrics: Part 2 Customer Lifetime Value, Prospect Lifetime Value Chapter 5: Customer Profitability (p ) Case # 1: Rosewood Hotels and Resorts: Branding to Increase Customer Profitability and Customer Lifetime Value (2007). Chekitan Dev and Laure M Stroock. Harvard Business School Brief Cases. (Coursepack) Page 4 of 6

5 WEEK FIVE Session # 9 Pricing Metrics: Part 1 Price Premium, Reservation Price, Percent Good Value Chapter 7: Pricing Strategy (p ) Session # 10 Pricing Metrics: Part 2 Price Elasticity of Demand, Optimal Price, Residual Elasticity Chapter 7: Pricing Strategy (p ) Case # 2: Virgin Mobile USA: Pricing for the Very First Time (2007). Gall McGovern. Harvard Business School Premier Case. (Coursepack) WEEK SIX Session # 11 Promotion Metrics Incremental Lift, Redemption Rates, Costs for Coupons and Rebates, Percent Sales on Deal, Pass-Through, Price Waterfall Chapter 8: Promotion Session # 12 Advertising Metrics: Online and Social Media Impressions, GRPs, CPM, Share of Voice, Rich Media Interaction Rate, Cost per Click, Cost per Customer Acquired, Conversation & Amplification Rates, Engagement Metrics Chapter 9: Advertising Media and Web Metrics Page 5 of 6

6 WEEK SEVEN Session # 13 Marketing & Finance Article: Return on Sales, ROI, EBITDA, EVA, Return on Marketing Investment Chapter 10: Marketing and Finance What Drives Managerial Use of Marketing and Financial Metrics and Does Metric Use Affect Performance of Marketing-Mix Activities? (2013). Ofer Mintz and Imran Currim. Journal of Marketing, 77(2), (Available on Carmen) Session # 14 Metrics & Dashboards Part 2 Case # 3: Chapter 11: The Marketing Metrics X-Ray Chapter 12: System of Metrics Marketing at the Vangaurd Group (2004). John Quelch and Carin-Isabel Knoop. Harvard Business School Premier Case. (Coursepack) TEAM PROJECT PRESENTATIONS: MONDAY, MARCH 2, 6:00 PM Team Project Presentations: Developing a Metrics Dashboard Notes: 40% of the Final Grade Each team will present for 20 minutes Page 6 of 6