This unit applies to individuals working in a marketing operations or supervisory role within a marketing team responsible for the use and reporting on measurements of marketing effectiveness. They may work in small, medium or large enterprises and in a variety of industries.

ELEMENT

PERFORMANCE CRITERIA

1. Identify and analyse measurement of marketing effectiveness

1.1. Research a range of metrics available to identify the effectiveness of marketing processes and functions

1.2. Identify marketing metrics used by the organisation in each key marketing operation

1.3. Identify how existing marketing metrics link to organisational strategy and objectives, and opportunities to improve the links

1.4. Analyse the effectiveness of current and possible future marketing metrics

1.5. Identify issues with the use of marketing metrics within the organisation

2. Develop the strategy to measure marketing effectiveness

2.1. Identify the organisation's criteria for selecting manageable and cost-effective metrics

2.2. Identify the organisation's objectives for the measurement and evaluation of marketing effectiveness

2.3. Recommend methods of measuring marketing performance for each marketing process or function tailored to the organisation's brand or unique positioning

2.4. Contribute to the calculation of costs of gathering and analysing data

2.5. Plan and document the implementation strategy for measuring and analysing marketing performance

2.6. Contribute to the development of specific, relevant metrics

3. Promote the strategy to measure marketing effectiveness

3.1. Plan the promotion of validity, value and efficacy of marketing metrics to key stakeholders using appropriate format

3.2. Design an internal marketing communications strategy so that marketing and other relevant personnel fully understand their role in measuring marketing effectiveness

3.3. Report on implementation and outcome issues

Required skills

communication skills to:

promote the strategy to measure marketing effectiveness

write and present complex reports

learning and research skills to:

research available metrics

design a communication strategy suitable for a range of people with different learning styles

numeracy skills to:

analyse marketing data

calculate costs of collecting and analysing data

select appropriate metrics

planning and organising skills to design implementation of the strategy to measure marketing effectiveness

technology skills for research and data analysis

Required knowledge

range of criteria for selecting metrics

range of marketing functions within an organisation

range of marketing metrics and their usefulness to measure key marketing operations

The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.

Overview of assessment

Critical aspects for assessment and evidence required to demonstrate competency in this unit

Evidence of the following is essential:

development of a strategy to measure marketing performance, which includes:

objectives

metrics chosen and rationale for choice for each marketing process or function

costs

link to organisational strategy and objectives

communication plan.

Context of and specific resources for assessment

Assessment must ensure access to:

a workplace or simulated work environment

relevant workplace documents and data, in particular data already collected to measure marketing effectiveness

office equipment and resources, including appropriate software.

Method of assessment

The following assessment methods are appropriate for this unit:

review of portfolio of evidence of actions taken to plan a strategy to measure marketing performance

oral or written questioning to assess:

actions taken to implement a strategy to measure marketing performance

knowledge of marketing metrics and their uses for different phases of the marketing process and for different marketing outcomes

analysis of responses to case studies and scenarios around marketing metrics.

Guidance information for assessment

Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended.

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.

Metrics may include:

brand equity, such as:

availability

brand perception

familiarity

loyalty

penetration

brand value

competition

customer databases

customer acquisition, satisfaction, retention, value and loss

communications effectiveness

e-metrics, such as:

hits

page views

visits

inventory efficiency and effectiveness

loyalty or retention

market performance by customer, product, accounting and financial outcomes

market share

overall sales

return on marketing investment in market-based assets

sales force effectiveness

segment penetration

share of mind

share of voice

share of wallet

shareholder value.

Marketing processes and functions may include:

advertising

direct marketing

distribution

e-marketing

loyalty programs

market research

marketing communications

pricing

product development, including pre- and post-launch

sales force.

Issues may include:

cost of obtaining meaningful information

frequency of measurement

level of management that reviews the metrics

skill of marketing personnel in terms of measurement

treatment of intangible assets in financial statements

volume of data to be analysed.

Criteria may include:

whether they are:

precise and sensitive to change

predictive, e.g. of future customer purchase, retention and cash flow

relevant to the organisation's strategy and context

reliable over time so trends can be tracked

cost-effective

costs (money and time) involved in measuring

possible benefits of measurement

risks if measurement does not occur.

Unit sector

Business development - marketing

This unit contains employability skills.