The selection of key non-financial metrics for measuring marketing effectiveness

Frantisek Milichovsky, Petra Koudelková

Abstract


Purpose. The paper presents study of examination non-financial metrics, which companies use to measure effectiveness of realised marketing activities in Czech engineering companies. Marketing activities have become crucial parts on way to reach goals of defined corporate strategy. Every business environment supports in market creativity, especially through marketing mix and its parts.

Methodology. The paper is based on primary research due questionnaire survey. Survey was focused on the performance evaluation of Czech engineering companies in the area of marketing effectiveness, in which actually participated 147 respondents. Selected data were put under examination by factor analysis. Outputs of factor analysis were put under examination of Cronbach’s alpha.

Results. Main results of research provide performance indicators such number of new customers, product audit, knowledge, value of both of brand and product, number of complaints or productivity per employee. All of these variables have different weight in impact of fulfilling marketing strategy as part of corporate strategy. From data evaluation there were found five factors, which were tested by Cronbach’s alpha. This test passed only one factor index – product. Individual variables of the index are statistical significant.

The theoretical contribution. The main aim of this paper is to set up complex index based on usage of non-financial metrics in Czech engineering companies. Observed metrics should be considered as the most important metrics, which have to use each engineering company to measure effectiveness of own marketing activities. With effective marketing activities there has been made very strong competitive market position.

Practical implications. The primary research, on which is paper based on, has been focused only on Czech business environment. Therefore, results are adequate only for Czech companies. There is necessary to do same research in international environments to compare strengths of individual countries. High reliability is supported by importance of engineering companies for Czech Republic because of the high rate of export engineering products. Due defined index, engineering companies could measure own marketing effectiveness from point of view of non-financial metrics, which are counted as modern measuring approach.

 

Keywords: 3-5 non-financial metrics, marketing effectiveness, marketing performance, key performance indicators

Paper type: Research paper


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