Marketing Performance Measurement and Management (MPM)
Marketing Performance Measurement and Management (MPM) -is a term used by marketing professionals to describe the analysis and improvement of the efficiency and effectiveness of marketing. This is accomplished by focus on the alignment of marketing activities, strategies, and metrics with business goals. It involves the creation of a metrics framework to monitor marketing performance, and then develop and utilize marketing dashboards to manage marketing performance. It focuses on measuring, managing, and analysing marketing performance to maximize effectiveness and optimize the return of investment (ROI) of marketing. Three elements play a critical role in managing marketing performance—data, analytics, and metrics. Although brand recognition may form part of the purpose of marketing, for a retailer, an increase in sales and profits provides the key ROI. However, an increase in sales transactions alone does not give a full picture of the effectiveness of a marketing campaign. If sales transaction have gone up by 10%, but store footfall has actually increased by 100%, then the campaign has been highly effective, but other factors have reduced the potential ROI. Thus the use of data from people counters to add footfall metrics as part of the MPM is key to understand the true effectiveness of a marketing campaign.