Benefits And Limitations Of Using Marketing Analytics And Marketing Metrics

2087 Words Mar 28th, 2015 9 Pages
Which are the benefits and limitations of using marketing analytics and marketing metrics to increase marketing intelligence?

Limitations:

- Lack of clarity of non-financial measures (Ambler 2004)
- Looking at matters from historical performance, the future competitive environment will be different from the past one, so why backward-looking instead of estimating somehow or other the competitive environment would be like? (Barwise and Farley 2004)
- Building up accurate basis for forecasting is hard, even though companies are focusing on the long-term perspective, willing to keep their competitive advantage, and sustainability, they can not predict certainly the competition and the future environment, like new entrants, new regulations, or new technologies (Jacobsen, 1988)
- Obtaining competitor’s marketing performance is hard, and benchmarking studies are expensive (Vorhies & Morgan, 2005)
- To increase marketing performance and productivity, marketers have to work athwart functional boundaries (Srivastava, Shervani, & Fahey, 1999)

Benefits:

- Performance measures procure feedback on what have been done, and thus, actions can be proceeding to adjust and correct the path if needed (Ambler, Kokkinaki, & Puntoni, 2004)
- Forward-looking is not only based on projecting past results, it takes into account factors like competitive dynamics, environmental changes, launch of new products etc (Ambler et al., 2004)
- Marketing actions have effects on both, long-term and…

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