Wednesday, September 15, 2010

The twelve areas of measurement in marketing

We are now ready to set up our checklist of marketing areas to be measured.
Area No. 1: The sales force. How well did it do? Did it distribute its efforts properly? Did the men have adequate supervision? Did they cover their territory? Are they properly compensated and motivated? Do the men understand fully what the company expects of them?
Area No. 2: The-cost of getting business. What is our yardstick for measuring the proper sales-cost ratio? How well did we do, territory by territory, and overall? Where can we improve? How do I, as the manager, know when a weakness shows up?
Area No. 3: The market position. What is the total market potential? How big a share of that do we have? In what areas are we above and below national average? What must we do to bring below-average areas up to average and to increase our total company share?
Area No. 4: The product line. Do products meet the current needs of the market? Is the product mix properly balanced? Are packages, unit sizes, etc., in line with what the market demands? Do our products reflect the latest advances in technology, science, benefit to user?
Area No. 5: Merchandising policies. What effort are we making to back up sales effort of the men in the field? Are we allocating our promotional effort (dollars, manpower, etc.) properly by territories, by po¬tentials? How much and how good is our advertising? How much cooperation do we have from distributors and dealers on our promotional efforts? How can we improve?
Area No. 6: New product policies. Are we properly set up to bring out new products? Are we keeping up with the parade of new products? Are we leading or following competition? Why? Are the company's new product plans adequate to meet future demands? Do we know what the effect of new products will be on established lines?
Area No. 7: The distribution setup. Does the current dealer setup reflect current needs and opportunities? Does it reflect the many new changes that have taken place in channels of distribution? Does it adequately cover the market? Are our current distribution policies (selective distribution, exclusive dealers, etc.) the proper ones today?
Area No. 8: Advertising and promotion. Do advertising and promotion deliver the proper information to customers? Are we using the proper media? the proper mix? the proper allocation by territories? How do we measure whether it is proper or not? Area No. 9: The package. Does the package reflect modern trends in styling, materials, color, convenience to user?
Area No. 10: Pricing policies. Is the price realistic in the light of today's markets? Is our pricing structure basically sound? Do prices reflect changing patterns of distribution and of buying habits? Do prices recover costs?
Area No. 11: The total company image. What does the public think of the company behind the product? Are we up to date on this, or do we lag behind competition? Just what efforts are we making to establish or improve our image?
Area No. 12: Staff organization. Is our organization in line with changes in competition? Does everyone on the staff understand what his job is, and how best to perform it? Are we using the most modern tools of performance (e.g., electronic data processing, motivation, research, etc.)? Are decisions being made on the basis of facts, or are we still guessing based on past experience? Do we have adequate provisions to train people and improve their perform¬ance?

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