There are many ways to measure the effectiveness of promotion, from a general assessment of the results of product implementation to an analysis of specific areas, such as advertising, SMM and SEO. In each case, certain metrics are used, some of which are unique to their niche.
It is necessary to regularly analyze the effectiveness of promotion in order to timely adjust the strategy and change the tools used to promote the enterprise. Most of these methods require the company to be present on the Internet, such as launching a website and managing social networks.
Let's imagine that the company "Satellite", which manufactures veterinary devices, made a wise decision to expand its product range and introduced dispensers into the production process.
This attracted the interest of veterinary drug manufacturers, who became the main target audience for this company. The company's staff of analysts must evaluate the effectiveness of marketing strategies and methods of promoting the new product.
According to the generally latvia email list accepted methodology, there are several key indicators that should be taken into account in assessing the economic efficiency of promotion.
Evaluation of promotion effectiveness
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The absolute value of the economic effect (E), expressed in monetary terms
E = (O × P%) / 100% – (Z + Zdop)
Where:
O – represents the turnover of products sold through promotion and expressed in rubles;
P% – reflects the expected profit expressed as a percentage of the selling price;
З – means expenses on product promotion in rubles;
Zdop are additional expenses that are associated with changes in the volume of deliveries or sales of products in rubles.
The economic result of promotion is the difference between the profit received due to additional sales caused by marketing activities and the costs of them. This result can be positive if the profit exceeds the costs, negative – expenses exceed the profit, or neutral – costs equal the profit.