Marketing Analytics Flashcards

Vocabulary flashcards covering key marketing analytics concepts and metrics based on the provided lecture notes.

Marketing analytics

The practice of measuring, managing, and analyzing marketing performance to maximize marketing effectiveness and optimize return on investment.

Return on marketing investment (ROMI)

A measure of the firm's effectiveness in using the resources allocated to its marketing effort, indicating the rate at which spending on marketing contributes to profits. It is calculated as $\text{ROMI} = \frac{(\text{Sales} \times \text{Gross margin } \%) - \text{Marketing expenditures}}{\text{Marketing expenditures}}$.

Sales

All of the revenue generated by core and noncore business activities.

Gross margin

The difference between price and cost expressed as a percentage, calculated as $\text{Gross margin} = \frac{\text{Selling price} - \text{Cost of goods sold}}{\text{Selling price}}$.

Marketing expenditures

The amount of money spent on all marketing activities during a specified period of time.

Revenue analysis

An analytical tool that measures and evaluates revenue from specific products or regions to pinpoint what is working and what is not relative to the objectives of the organization.

Market share analysis

An analysis that indicates market share, providing marketers with a quick look at how they are performing relative to competitors.

Market share

The percentage of total market sales captured by a brand, product, or firm.

Profits

The positive gain from a business operation after subtracting all expenses.

Profitability analysis

An evaluation that measures how much profit the firm generates, which can be broken down to measure the profit contribution of regions, channels, or customer segments.

Customer acquisition

A metric that measures how much the firm spent to gain new customers, typically including spending on advertising, public relations, and sales.

Customer profitability

The profit a firm makes from an individual customer over a specified period of time.