Whatsyouridea1996 您說呢?!: 【#BusinessManagement #Marketing #KPIMatrix】Marketing is also responsible for sales performance, do you agree? 202210170001

Friday, December 23, 2022

【#BusinessManagement #Marketing #KPIMatrix】Marketing is also responsible for sales performance, do you agree? 202210170001

【#BusinessManagement #Marketing #KPI】Marketing is also responsible for sales performance, do you agree? 202210170001

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This post and all KPI related articles are listed under: # KPI

Hi. This is Emily from Taiwan, finance and accounting work background, the author of Whatsyouridea1996 blog.

I have an idea to change my name as: Ms. Fairness and Balance 👵😀, because, when my friends are discussing about work objectives allocation within their companies and they cannot resolve work roles and responsibilities issues, they come to ask my idea for solution, and that finally becomes my work responsibility to find out the solution!! 😤😆 I thank them for recognizing my work capability in this aspect, though, I plan to do this: those who have asked me for 3 times, they need to sponsor my blog at the 4th before getting my answer 😁. That’s fair and balanced, right?!

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Preface

1. Marketing is also responsible for sales performance, do you agree?

2. Then, what’s the difference between Marketing and Sales department?! Sales department’s work responsibility is to reach sales target?! Why does Marketing also need to do that?!

［Please also refer to：Sales #KPI, whatelse besides sales amount?　］

In my opinion: a company may separate sales and marketing work professionals into two departments or combine into one based on business scale or work organization objectives… etc., thus, it is obvious that, these two work departments have similar direct work mission, that is, to let this company make money. It’s similar to people from a family clan, there are things extremely alike, and however, they are not totally the same.

If we tell form [numbers in finance statements] and [ job description ], there are something similar and different in between Marketing and Sales:

Please indicate whatsyouridea1996.blogspot.com as source if you want to use this picture above

Because this situation listed above, I agree Marketing also has the work responsibility to increase sales growth, however, its work objective is for single product (ex: new product launching briefing)or sales performance in specific period (ex: department stores anniversary, annual stock clearance, sales performance of exhibition), otherwise, it is difficult to Marketing to reach specific sales amount or defined percentage of sales growth within a year, or, it will be applicable if they work with Sales team.

Is there anything you think differently?! Please comment.

- How does your company assess Marketing’s work KPI and its achievement rate?

- I’ve heard that some companies define their Marketing KPI by the work progress of spending their Marketing yearly budget, yes, not by their work result but the money spending progress. How do you think about their doing this way?! I would say, only when the work result is 100% controllable before it’s been conducted, and, if that is not the case, how they can ensure their work result of spending money in planned progress can fulfill the benefit of shareholders or business owners? Isn't the office workers main work mission to meet the interests of shareholders or business owners?!

What’s your idea?! Please comment.

Example of Marketing Department KPI Definition

Many people have already known “Marketing 4P” or “4C and 7P”, and their explanation are all attainable via internet or reading books, so I won’t do the copy –and-paste works for sharing the definition here😊😀😀; no matter it is 4P or 7P…, they are saying the ways to achieve business “ expectation”. Here, I would like to utilize “7P” and “expectation” to create a chart and name it as : MKT-KPI-Matrix (version:2022/10/18) to illustrate the KPI things.

MKT-KPI Matrix ; please indicate whatsyouridea1996.blogspot.com as source if you want to use this picture above

I summarize the conclusion from my discussion with some Marketing Heads about their department work KPIs, and, I’ve adjusted some wording for the “expectation”, they become “Approachability”, “Visibility”, “Familiarity”, “Favorability and Warmth” and “Acceptance”; if you/your company would like to follow this way to define Marketing KPI, it’s surely you could consider to revise the wording to make alignment with your goal.

MKT-KPI Matrix description: in a specific year, the boss expects the Marketing Department to work to increase their product image exposure, and let everyone be familiar with this product,

(1) They define KPI as “Visibility” and “Familiarity” accordingly.

(2) The Marketing Department plans to utilize people, sales channel and marketing related activities to reach this work objective, so they define the work scope covering C. Place/Channel, D. Promotion and E. People of this work.

(3) Accordingly, they consider elements related to above columns in red lines, including “Visibility”, “Familiarity” and the vertical C.Place/Channel, D.Promotion and E.People, and define 6 items in the work detail, such as 4.Everywhere, 5.Advertising, 7.Creativities, 8.Frequently, 9.Aquantance Promoting and 10.Everyone Involved as their work KPIs.

In this case, KPI is measured in aspects of “Visibility” and “Familiarity”, it is to quantify their work result for measurement; those 6 items are also assessable for work performance, its measurement depends on how much resource this company would like to invest for defining this KPI, and more than that, in the beginning, it is better for them to know why they feel current product exposure is not enough first, so they need to define these KPIs and works.

- KPI of “Visibility” and “Familiarity” is to measure the work effect : in B2C products, if we don’t want to spend too much money in evaluating the effect, please refer to this article, Brand Management Leaders in【#Who is the successor?】Interviewers, please consider asking these questions, the company can investigate by asking interviewees questions and know whether they’ve ever viewed the advertisement or participated marketing events held by the company, and, the company can define that only when at least 80 investigated candidates in 100 have heard of this product the KPI is taken as reached; and in B2B business, the company can know by doing current customers survey and to quantify the measurement, the company can consider using the same way as B2C using percentage method and define the significance based on the volume of their customers.

- In those 6 KPIs, the measurement can be defined as: work progress and work outcome.

1.Work progress: work completion progress in specific period. For example: 4.Everywhere: the KPI means they will build up flagship stores or wallscape in downtown in northern, middle and southern area, totally 3 location, and they need to complete this work within 6 months; 6 and 3 is the number to quantify its KPI.

This work progress is different from above marketing budget expense spending progress, it means work activities execution progress following the plan; due to their work nature, the comments about workable and not workable about KPI as work progress by plan or as money spending progress by budget plan is not contradictory.

2.Work outcome: the way to measure and define KPI is the same as above “Visibility” and “Familiarity”.

Work practice sharing -> some people say: “ Our company’s wording skill is not good(Note1), and, Marketing is an invisible thing, no one knows how to define their work objectives, thus, not to mention to “quantify” their work KPI; we would like to purchase TV commercials to create our brand awareness, but no one knows how to measure the “awareness” (Note2)?!”

To answer Note2 first-> [Ask what you want to know]

In aspects of expense budget control + effectiveness of spending money management, the Finance Head asked the Marketing Head some questions:

1.In advertisement expense in Marketing Department budget number, what is the work objective of this amount?! (Assume the answer is “to increase brand awareness””)

2.Please Marketing Department provides description or supporting documents for:

(1) The measurement used for assessing brand awareness.

(2) Brand awareness current situation and date of measurement.

(3) Predicted brand awareness outcome after advertisement is done and its date of measurement.

In this case, finally, it was Marketing Department to purchase survey report prepared by advertisement service company to reply all the 3 questions above, Marketing Department played both of the work role as advertisement performer and effect monitor, this caused weak internal control issue due to work role not independent, however, it was temporarily accepted then because of its urgency; at the end, it was Sales Department played the questionnaire issuer role to know customers and acquaintance’s impression and idea after viewing its commercials in order to establish a Marketing internal control mechanism ensuring no gap between feedback to questionnaire and what the report said, due to this control, Marketing Department and Advertisement service providers work roles surely need to be independent, this helps sales expansion. In this company, their Marketing Head and Sales Head are not the same persons. In this case, if it uses MKT-KPI-Matrix, in that year or at that moment, their Marketing work KPIs are: #5, #7, #10, and #18; the #18 is Kind and Warm, it means, this commercial needs to bring story that make viewers feel warm; so, that is what Sales Department needs to know from other viewers to know whether this commercial’s work objective is fulfilled.

Back to the MKT-KPI-Matrix and (Note1), the wording issue, please consider to utilize numbering or key words to define what you want to say then add it into MKT-KPI-Matrix; for example, Marketing KPIs of this year are:

(1) Let everyone see our company's products and love it.

(2) Everyone has heard of our company, and the company name will not be confused with OOO firm.

and things like this. You can replace “Favorability “ with number (1) or ”love it” in MKT-KPI-Matrix, and, replace “Familiarity” with (2) or ”has heard” ; to build up yearly work result expectation by 7C and input the measurement at the end.

Please indicate whatsyouridea1996.blogspot.com as source if you want to use this picture above.

Please be reminded that, just like the words in white and highlighted in purple above, we need to know why we feel something needs improvement before we define some kind of work KPIs then we are able to measure the work outcome after KPI is conducted in the future

(to assess the weakness be improved or not?!), this is to avoid we make our work environment filling with KPI and perform it but actually we don’t know what it is for.

Is there anything you think differently? Please comment.

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