Brand awareness: often the first marketing communications goalBrand awareness is fundamental to success in the marketplace; if consumers are unaware of the brand they are unlikely to become customers. This is why the first goal in a marketing communications plan for a new brand is to build awareness of the brand.What is brand awareness?As suggested […]
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Hierarchy of effectsThis is a marketing model designed to demonstrate how a consumer transitions from being unaware of a brand, to forming attitudes and understanding of that brand, to ultimately becoming an end customer.There are many versions of this hierarchy of effects model found in textbooks, but let’s start with a very basic three-step model
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Hierarchy of effects model and share of minds and share of heartsThere are numerous hierarchy of effects models that are covered in marketing literature. Probably the most common one was developed in 1961 and is a six stage model usually included in a Philip Kotler marketing textbook. The following diagram is an expansion of the
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Relative market share is a marketing metric used to compare the firm’s market share to the largest competitor in the market.
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Quick Overview of the BCG MatrixFor those people familiar with the BCG matrix, you should recall that the horizontal axis measures relative market share.This is the more important of the two dimensions. A high or low relative market share makes the difference between a cash cow and a dog or a star and a question
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Free online CLV calculatorThe following free online CLV calculator is ideal for quick calculations of customer lifetime value. If you need a more detailed calculation of customer lifetime value, please download the free Excel template for calculating customer lifetime value.How use the free online CLV calculatorYou only need to enter three numbers – into the
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How to Use the Full CLV CalculatorYou only need to enter four numbers – please only type over the numbers in the white cells – the numbers in the orange cells are automatically calculated for you.To calculate the customer lifetime value, you will need to enter:Average customer acquisition costsAverage customer profit contribution per yearAverage annual
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There are five CLV videos available here:Using the free Excel CLV template (available for download on this site)A step-by-step guide to the CLV formula and calculationUsing Excel to calculate CLV (without the above template)A guide to understanding discount ratesAn overview of financial metrics for marketing
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What does a discount rate do?Discount rate converts future cash flows (that is revenue/profits) into today’s money for the firm. For example, if you put $100 into a bank account today that have 10% interest, then in 12 months’ time you would have $110 in the bank. In this case, $110 next year is equivalent
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Understanding the financial metrics for customer lifetime valueThe full customer lifetime value calculator and the free Excel CLV template both provide a summary outcome for several related financial metrics. Please refer to the image below of the full CLV calculator. As you can see, at the bottom, there are multiple financial metrics listed, including:CLV (with
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