How to Develop KPI For Marketing

Anyone in any line of business will not survive with poor marketing strategies. And since this is an established fact in the world of business, there is a different set of KPI for marketing to streamline all marketing processes and procedures. This will ensure that the brand is indeed known and that the people are aware that the product exists. Other than this, marketing strategies will certainly help business leaders in combating the challenges of competition. It is obviously necessary that marketing action plans are measured in terms of effectiveness through certain Key Performance Indicators or KPIs that will show if they are bringing in customers or not.Before moving on to KPIs, one needs to understand the meaning of marketing. One may be misled if his understanding of this business component is different from how it should be perceived. Marketing is a never-ending process. This is precisely because people change and the environment changes as well. The needs of the people are constantly evolving as technology also progresses. What used to be an effective approach in selling the goods and services may be considered outdated. Marketing has three categories and this includes distribution of goods, selling of goods, and advertising.Marketing is not only about the three categories; this also has something to do with anticipating what the customers will want in the future as the times change. To develop an effective set of Key Performance Indicators for marketing, one should realize that the company itself should be practicing customer centric principles. There is this thing called Four “Ps” in marketing to ensure that the action plans are effective, and that the company is geared towards customer satisfaction, and that the customers’ needs are really met. Never forget, marketing is also essentially about competition.The first metric is product. What product is being sold? Is this a need or a want? The product, whether it is a need or a want, should be constantly innovated to be able to keep up with the times. Any company that does not invest in technology will go out of business soon enough. This applies even in basic human needs, such as food. If technology is not applied (machines, for example) in farms, it will take the farmer longer to process his crops to be fit for human consumption. By the time he is finished, customers would have already bought crops from other farmers.The second of these metrics is price. What a company sells should not be overpriced as far as competition is concerned. Of course, the price should not compromise the revenue of the company. When pricing a product, it should not just be competitive enough with other products of the same line in the market, but it should also be enough to earn revenue. What many companies do is compromise raw materials and general quality depending on their target market.Another one is place. One cannot sell overpriced coffee or luxury items in a small town. And the last of all is promotion. This is where the advertising agencies will come in. Always ensure that the advertisements are directed to the target audience in the right format. This is either in television, radio, or Internet. Once these four “Ps” are satisfied, the KPI for marketing will also be fulfilled.