Magic Numbers for Consumer Marketing: Key Measures to Evaluate Marketing Success (Hardcover)

~ (Author)

Editorial Reviews

Review

When I first picked this book up, I didn’t want to like it, even though its curious alpha-numeric front cover made me think of our own company’s name.
At first glance, it looked like a bunch of marketing theories, ideal for the young student (John Davis is now lecturer at Singapore Management University). After all, does anyone need to know that LTVC = [M-C] x (PxY) - A + (AxN)] x F? (by the way, that’s the formula for Lifetime Value Analysis—of course).
Then it was a whimsical comment in the foreword that really hit home: ‘If you are a mindless thrillseeker, then by all means go to the market without learning anything. Don’t bother with medical school before becoming a doctor. How hard can neurosurgery be anyway?
Davis’ book is filled not with things that are nice to know, but things we ultimately must know if we are going to rise to the top of our profession.
This is not the book to read for some mindless escapism. A lot of it is hard work. There are 61 different sets of formulae laid out here, each one neatly set up in terms of the data, the way to calculate it and what it means and potential challenges. And it’s the ‘What It Means’ sections where theories become reality, and the book moves from textbook to practical primer.
The author uses some of his own case studies from his time at Nike and other US companies, mixed in with a bunch of other real work examples from LVMH, WalMart, Mercedes, Hewlett-Packard, etc.
The breadth of the coverage is actually pretty extraordinary. From the basics of market share and market demand principles, to media metrics and direct marketing measures, there is the practical evidence to underwrite most marketing theory.
Two areas for me though stood out — one on the theory and implementation of brand value frameworks and brand culture — from Y&R’s renowned Brand Asset Valuator to Brand Finance’s excellent theories of Brand Valuation.
This whole approach, while still intangible and challenging, is one of the few solid theories where marketers and agencies can actually show their value to a business, beyond pure sales. The other is the basics of valuing business — revenue, profit, earnings per share, price-earning ratios. All the things you never learnt in school, but become essential if you want to succeed in business
A recent global McKinsey study into CEOs’ views of their CMOs was not flattering. While there were a few positive adjectives such as committed and creative, they were outweighed by a long list of phrases such as inconsistent, undisciplined, not accountable, expensive and faddish (ouch!).
One CEO said their CMO was “more like a small child than an executive”. With most CEOs now looking at the ROI on everything (one can see them asking their spouses “What is the ROI on our marriage?”), the marketing and advertising community will have to step up. This book should help them. (Media, December 2, 2005)

Product Description

Magic Numbers for Consumer Marketing specifically describes key marketing measures commonly used in business. The book is designed to help marketers and non-marketers alike recognize the best measures to use when assessing the performance of marketing programs. Each marketing measure is defined, along with relevant examples and/or illustrations. Furthermore, the risks associated with relying too much on these formulas to the exclusion of other business inputs is discussed, providing readers with helpful guidelines of when these measures are most appropriate. From market share to customer lifetime value, there are numerous formulas that will help business people measure both the potential opportunity and actual results of various marketing activities. In addition, Magic Numbers for Consumer Marketing also describes key non-formulaic marketing frameworks, including brand value and brand culture. The frameworks and formulas are presented together because each depends on the other. Understanding the frameworks enables managers to more clearly see the link between organization design and outcomes, while the formulas help measure specific marketing program performance.

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Product Details

• Hardcover: 228 pages
• Publisher: Wiley (September 21, 2005)
• Language: English
• ISBN-10: 0470821620
• ISBN-13: 978-0470821626
• Product Dimensions: 10.3 x 7.5 x 1.4 inches
• Shipping Weight: 1.7 pounds (View shipping rates and policies)
• Average Customer Review: 4.0 out of 5 stars  See all reviews (2 customer reviews)
• Amazon.com Sales Rank: #1,799,092 in Books (See Bestsellers in Books)

Customer Reviews

Most Helpful Customer Reviews

5.0 out of 5 stars Great for Folks interested in Marketing Metrics, February 14, 2006

By	Sundar G. Bharadwaj - See all my reviews (REAL NAME)

If what gets measured, gets managed, this book serves a very useful purpose. Managers, students interested in marketing and potential converts to marketing could do well to read this book. It provides a list of metrics that are very relevant for any number of marketing specific actions. In the process, it helps marketers to be more accountable and transperant and moves the field from the realm of "faith" to one of facts. It covers the whole spectrum from really basic measures to more challenging ones such as lifetime customer value and from product oriented measures to service (retail) to database metrics. Practical guidelines of the relvance of the measure to a context, plus "how-to" guidance are provided. Another key strength of the book is that pitfalls of the measures are discussed as well. This is especially critical, because measurement could lead to unintended consequences. Moreover, companies sometimes face the "the tail wagging the dog" situation with measures managing executives.

2 of 4 people found the following review helpful:

3.0 out of 5 stars sloppy editing works, February 26, 2006

By	Z. Yixin "book maven" (Sydney, Australia) - See all my reviews (REAL NAME)

the knowledge and information shared in this book is useful but are too basic ones. plus, i have found two editing mistakes within my first 20 pages reading. on page 243, the abbreviation of "cost per gross rating point" should be read as CPGRP, rather than CGPRP. and on page 271, the second calculation of DM should be DM=$40,000/($30*0.05*0.75)=35,555 pieces, rather than just repeat the same one as above. quite disappointed with the editing quality.