Performance Evaluation & KPI: Maximizing ROI for BMW - Essay Sampel

Performance evaluation saves the company time and money resources by providing credible information to either appraise or stop certain strategies and business conduct. Key performance indicators (KPI) play the role of pointers to the worth or value of every business activity. To be sure that BMW’s marketing efforts do not go to waste, metrics are put in place to ensure the effective utilization of the company’s resources. Plans need to be evaluated to determine the success or failure of business strategies. As such, Mazlum (2019) define KPI as a value that demonstrates how effectively a company achieves its key objectives. BMW Group can measure the rate of new customer acquisition to determine the effectiveness of its marketing activities. Geographical performance is also another KPI that BMW can use together with sales growth indicators.

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The number of new customers can tell BMW Group how effectively its marketing strategies result in increased sales. While retaining customers is an element of good business practices and customer satisfaction, new sales are often a result of aggressive marketing campaigns (Deepak & Jeyakumar, 2019). Tracking the number of customers who visit the company at its website, as well as physical establishments, help the marketing team distinguish between repeat customers and new clients.

Market segmentation and classification of marketing activities also inform about the success or failure of promotional and advertising strategies. This KPI is used by tracking the number of clients expressing interest in the company and getting the rate for visitors to sale-lead conversion. Activities to create awareness and their budgetary allocations can be traced to determine which strategy is most effective and in exact locations.

Per every customer category, BMW should monitor general and specific trends that could affect the market. Micro and macro level marketing campaigns should also be tracked to determine which activity is most beneficial to increasing sales lead. The KPI here is the growth of the organization. This metric can also identify other underlying factors that hinder the growth of the BMW Group.

As the primary role of marketing is to increase sales by spreading awareness and utility of company services and products, Katsikeas et al. (2019) reported that a company’s marketing strategy does not automatically translate to improved sales. The organization should monitor and measure the productivity of the organization’s plans concerning the resultant change to the company’s bottom line.

References

Deepak, R. K. A., & Jeyakumar, S. (2019). Marketing management. Educreation Publishing.

Katsikeas, C., Leonidou, L., & Zeriti, A. (2019). Revisiting international marketing strategy in a digital era. International Marketing Review. https://doi.org/10.1108/IMR-02-2019-0080

Mazlum, A. R. (2019). Determining of key performance indicators in business. Istanbul Ticaret Üniversitesi Girisimcilik Dergisi, 1(2), 1-14. https://dergipark.org.tr/en/download/article-file/1178506