Benefits And Limitations Of Using Marketing Analytics And Marketing Metrics

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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,…show more content…
http://www.sciencedirect.com.ezproxy2.acu.edu.au/science/article/pii/S0019850106001763 Why is it important for a business to measure both internal and external metrics? Both internal and external performance metrics are required for a business to understand how it performs, and undertake quickly actions, if it is needed. Internal company metrics allow a company to evaluate itself, by judging if it is managing well its “unit costs, expenses, asset utilization, employee and capital productivity, and overall financial profitability”. External marketing metrics show how is the company performing from a market-based perspective, and if it is profitable. They are used as predictors, and then give a path to develop a strategy according to the results, to improve performance. There are two ways to assess theses measures: - Backward-looking metrics, which are measures that report to a company who it performs now but do not provide any perception for the future. At the internal company metrics level, there are: sales, revenues, percent gross profit, net profit before tax, return on assets, while at the market level, the external
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