Essay Example on Measures of Marketing Effectiveness

Published: 2023-01-13
Essay Example on Measures of Marketing Effectiveness
Type of paper:  Essay
Categories:  Marketing Marketing plan
Pages: 3
Wordcount: 600 words
5 min read

Marketing is the act of creating, developing, communicating, and delivering offers that have value for clients, partners, and society of a given institution. Marketing effectiveness, on the other hand, refers to the extent to which the marketing process is successful in producing the desired result of boosting customer preference. According to Donnelly and Peter (2012), the following ways can, therefore, be used to evaluate the effectiveness of marketing activity.

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While using digital platforms like email marketing, social media, and digital advertising, the measurement of the effectiveness of marketing can take the form of checking on the long term and the short term revenue growth in comparison to the cost incurred by the organization in acquiring a client. This existing marketing data already answers some questions like pointing clearly what the typical reordering time is with the new clients in a given period. Such information enriches the data hence making the evaluation process more accurate.

Making a clear track of capital expenditure by the marketing procedures is also vital in determining the effectiveness of marketing activity (Kotler et al., 2014). According to Kotler, important such performance indicators play a crucial role as they can enable cross-referencing against past performance to ensure that a marketing campaign is on track. How an organization uses its capital can be used in several ways to ensure that the organization is making a profit and that there is growth in revenue. It is, therefore, an essential element that could be used by organizations to check on how effective their marketing is.

Defining marketing channels by itemizing various platforms for marketing activity can clearly define marketing effectiveness. The channels may include paid search, email marketing, content marketing, and even social media marketing. Through this, you can quickly determine how much inquiries resulted from social media, what traffic was brought by paid search and comparing click-through rates and conversions from email marketing. That will provide customized information that, in turn, makes the measuring of marketing effectiveness efficient and accurate.

Calculation of customer lifetime value is another measure of marketing effectiveness (Kotler et al., 2014). The lifetime values can either be long term or short term. The long term impact always determines the overall success or failure of the marketing activity. The longer the preference to a company's product, the higher the profits hence a marketing activity that achieves this is considered as auspicious.

In my opinion, tracking capital expenditure in comparison to the generated revenue is the most important way of evaluating the effectiveness of marketing activity. The reason as to why I think it is the most effective is because it clearly shows the measurable outcome of marketing activity in monetary value. It also points clearly when an action has either flourished or failed to meet its purpose whereas determining marketing channels would be the least important since it wouldn't be possible to focus the analysis in one market channel. Besides, it is a guarantee that existing clients will buy most products just as easily as newly converted leads.

The effectiveness of all the listed ways is primarily self-contained as each activity serves an independent purpose in measuring the success of marketing activity. Different processes serve different functions that work in their specific dimensions. Therefore, each of the methods is as important as its role requires and should be used besides each other to realize a maximum result in terms of marketing tracking.


Donnelly, J. J. H., & Peter, J. P. (2012). Preface to marketing management. Mcgraw hill higher educat.

Kotler, P., Keller, K. L., Ancarani, F., & Costabile, M. (2014). Marketing management 14/e. Pearson.

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