Criteria of market strategy evaluation

Criteria of market strategy evaluation
See also
Balanced scorecard perspectives Key success factors Sales target Strategic position Strategy Sales objective Strategy of the organization Goal intensity matrix Growth potential

Criteria for the evaluation of the marketing strategy is a set of factors, parameters, characteristics, properties on the basis of which managers can assess the marketing strategy.

Strategic marketing is closely linked to the needs of individuals and organizations. As stated by Jean-Jacques Lambin "... the buyer is not looking for the product as such, but a product that can provide a solution to the problem." The most important role of strategic marketing is analysis of consumer needs, which allows observation of the evolution of the market and to identify existing and potential product markets. All companies should try to satisfy the needs of the customer. Marketing therefore extends to the entire culture and atmosphere in the organization.

Strategy efficiency

Fig.1. Marketing strategy elements

Marketing strategy can be effective only when it is based on a thorough knowledge of the market. Strategy implementation and execution may take place only when there is a consistency of plans for market penetration, price policy, advertising and distribution.

Marketing strategy is composed for specific tasks and goals of the company. This may be a problem with achieving financial gain or maintain existing market position. Intermediate objectives of the company, usually aim to maximize profit. Therefore, one of the criteria for assessing marketing strategy may be company final result measured by generated profit.

Marketing strategy can be assessed by measuring other results in the areas of products, distribution channels, pricing and marketing communications.

• Types of marketing strategy:
  • development - focused on the increase in production, sales, investments, market position and profit,
  • maintain the market position,
  • selective development of selected products.

Marketing strategy can also be assessed from the point of view of the correctness, completeness and range of tools used in implementation.

See also:

• Project evaluation methods

Examples of Criteria of market strategy evaluation

• Efficiency: This criterion evaluates how well the strategy has achieved the desired goals in terms of cost, time, and resources. It measures the success rate of the strategy and how quickly it has achieved the desired results.
• Reach: This criterion evaluates the reach of the strategy. It measures the number of people it reached, the type of people it reached, and the geographical scope of the strategy.
• Engagement: This criterion evaluates the degree of engagement the strategy has achieved. It measures how well the strategy has engaged the target audience and how well it has kept them engaged.
• Feedback: This criterion evaluates the feedback the strategy has generated. It measures the number of comments and reviews the strategy has received and what kind of feedback it has generated.
• Conversion Rate: This criterion evaluates the number of people who have converted into customers after being exposed to the strategy. It measures the effectiveness of the strategy in terms of generating sales and profits.

Advantages of Criteria of market strategy evaluation

Criteria for the evaluation of the marketing strategy is a set of factors, parameters, characteristics, properties on the basis of which managers can assess the marketing strategy. It can provide a measure of the effectiveness of the marketing strategy and can be used to make changes and adjustments to ensure the desired outcomes. The following are some of the advantages of having criteria for market strategy evaluation:

• It provides a clear set of criteria for assessing the effectiveness of a market strategy. This helps managers to focus their efforts on the most important elements of the strategy and identify areas for improvement.
• It helps to ensure that the marketing strategy is well-aligned with the overall goals of the business. Evaluation criteria can help to identify any disconnects between the strategy and the company’s goals.
• It can help to identify opportunities for improvement and innovation. Evaluation criteria can provide insight into how the strategy can be refined and optimized to better meet customer needs.
• It can help to ensure that the strategy remains competitive in the market. Evaluation criteria can help to identify areas where the strategy may be lagging behind competitors and allow for necessary adjustments.
• It can provide an objective assessment of the strategy. Evaluation criteria can be used to remove any potential bias when assessing the effectiveness of the strategy.

Limitations of Criteria of market strategy evaluation

Criteria for the evaluation of the marketing strategy is a set of factors, parameters, characteristics, properties on the basis of which managers can assess the marketing strategy. However, there are certain limitations to the criteria used to evaluate a marketing strategy. These include:

• Inability to capture the intangible benefits of a strategy: Intangible benefits such as brand awareness and goodwill cannot be captured by traditional criteria and thus cannot be used to effectively evaluate a marketing strategy.
• Lack of current data: Many criteria used to evaluate a strategy are based on data from previous periods which may not be applicable to the current situation.
• Focusing on short-term gains: Many criteria used to evaluate a strategy are focused on short-term gains and do not consider long-term effects.
• Subjectivity: Criteria for evaluation of a strategy can be subjective and open to interpretation, making it difficult to objectively measure the effectiveness of a strategy.
• Ignoring external factors: Criteria used to evaluate a strategy often ignore external factors such as market trends and competition, which can have an important impact on the success or failure of a strategy.

Other approaches related to Criteria of market strategy evaluation

• An introduction to the list:

Other approaches related to Criteria of market strategy evaluation include:

• Customer-focused approach: This approach assesses the effectiveness of the marketing strategy in terms of customer satisfaction and loyalty. It looks at the customer’s experience in terms of the value, convenience, and satisfaction that the marketing strategy provides.
• Strategic fit approach: This approach looks at how well the marketing strategy fits with the overall business strategy and objectives. It evaluates the alignment between the marketing strategy and the other components of the business strategy.
• Competitor-focused approach: This approach evaluates the marketing strategy in terms of its ability to compete with other companies in the market. It looks at the marketing strategy’s ability to differentiate itself from the competition and gain a competitive advantage.
• Financial performance approach: This approach evaluates the marketing strategy in terms of its financial performance. It looks at the return on investment (ROI) generated by the marketing strategy and other financial metrics such as sales growth, market share, and profitability.
• Innovation-focused approach: This approach evaluates the marketing strategy in terms of its ability to deliver innovative solutions and products to the market. It looks at the marketing strategy’s ability to identify and capitalize on opportunities for innovation.

In summary, Criteria of market strategy evaluation can be assessed from several different perspectives, including customer-focused, strategic fit, competitor-focused, financial performance, and innovation-focused approaches. Each approach provides different insights into the effectiveness of the marketing strategy and can help managers assess its performance.

References

• Chaffey, D., Ellis-Chadwick, F., Mayer, R., & Johnston, K. (2009). Internet marketing: strategy, implementation and practice. Pearson Education.
• Cravens, D. W., & Piercy, N. (2006). Strategic marketing (Vol. 7). New York: McGraw-Hill.