Kotler's New Metrics for Return on Marketing Investment (ROMI)

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Shubhi Kotiya, CxO / Board, Germany
Kotler et al have introduced new metrics for better measurement of the Return on Marketing Investment (ROMI). In line with namely Aware (A1), Appeal (A2), Ask (A3), Act (A4), And Advocate (A5), they suggest2 ratios as valuable metrics: - Purchase Action Ratio (PAR), and - Brand Advocacy Ratio (BAR). WHAT ARE THE PAR AND BAR RATIO? DEFINITION
  • PURCHASE ACTION RATIO: How well companies convert brand awareness into the brand purchase. An essential matrix to track the customer journey from the A1(Aware) to the A4 (Act) stage. PAR = Purchase Action / Spontaneous Brand Awareness.
  • BRAND ADVOCACY RATIO: How well companies convert brand awareness into brand advocacy. An essential matrix to track the customer journey from the A1(Aware) to the A5 (Advocate) stage. BAR=Spontaneous Advocacy / Spontaneous brand Awareness.
EXAMPLE From a population of 100 people in the market, Brand Y is spontaneously recalled by 90 people. So the Brand Awareness is 90 / 100 (...) Read more? Sign up for free

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