Marketing Analytics
PPT-2 (Customer Perspective Metrics)
Naveed Ilyas
Visiting Faculty
Institute of Business Management
1
Ch- 2
2
Module 2:
Customer
Perspective
Metrics
Share of Hearts, Minds & Markets
3
Outline
•Market Share
•Relative Market Share
•Market Concentration
•Brand / Category Development Index
•Penetration
•Share of Wallet / Requirements
•Heavy Usage Index
•Awareness, Attitudes, and Usage (AAU)
•Customer Satisfaction
•Willingness to Promote
•Net Promoter
•Willingness to Search
Market Share
4
•What is total market ??
•Whether forecasts are to be attained by growing with the market or by
capturing share from competitors?
•Indicator of how well a firm is doing against its competitors.
•Is it possible that sales are increasing while market share is decreasing?
•It is not easy to define the market
Market Share – Ex#1
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Relative Market Share
6
•A firm with a market share of 25% would be a powerful leader in many
markets but a distant “number two” in others.
BDI / CDI
8
Relative market share is “relative to competitors”
BDI / CDI
9
•BDI and CDI are useful for understanding specific customer segments
relative to the market as a whole
•These indexes could also be used for customers, accounts, business, or
other entities.
•These index help in identifying strong and weak segments
•BDI is less and CDI is more ?
•BDI is more and CDI is less ?
Note: A document has been uploaded on your Google group !
BDI / CDI - Example
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Penetration
11
Penetration is a measure of brand or category popularity.
Managers must decide whether to seek sales growth by acquiring existing
category users from their competitors or by expanding the total population
of category
Share of Requirements (Wallet)
12
It is a key measure of loyalty
Can guide a firm’s decision on whether to allocate resources toward efforts
to
•expand a category
•take customers from competitors
•increase share of wallet
Share of Requirements (Wallet)
13
Sole Usage
14
Heavy Usage Index
15
The heavy usage index yields insight into the source of volume and the
nature of a brand’s customer base
Heavy Usage Index
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Awareness, Attitudes, and Usage (AAU)
17
Awareness, Attitudes, and Usage (AAU)
18
Awareness, Attitudes, and Usage (AAU)
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Awareness and Knowledge
•Awareness
•Top of Mind
•Ad Awareness
•Brand / Product Knowledge
Attitudes
•Attitudes / Liking / Image
•Perceived Value for Money
•Perceived Quality
•Relative Perceived Quality
•Intentions
•Purchase Intentions
Usage
•Purchase frequency
•Adopted / Rejected
Customer Satisfaction and Willingness
to Recommend
20
Customer Satisfaction provides a leading indicator of consumer
purchase intentions and loyalty
Why to do this survey ?? Can’t sales and market share tell me
about the customer satisfaction ??
Customer Satisfaction and Willingness
to Recommend
21
22
Net promoter is a measure of the degree to which current customers will
recommend a product, service, or company
NPS – Net Promoter Score
Issues with this tool ??
23
When a brand enjoys loyalty at this level, its provider can generate powerful
leverage in trade negotiations
Such loyalty will also give providers time to respond to a competitive threat
Willingness to Search
Assignment
24
Marketing Metrics: Ch 2
Marketing Analysis Toolkit:
•Market Size and Market Share,
Harvard Business School
IMPORTANT NEWS !
•Finalize your company by next week .
•Detailed proposal will be due after two
weeks !