Marketing effectiveness is the measure of how effective a marketing strategy is toward meeting the goal of maximizing their spending to achieve positive results in both the short- and long-term.

Marketing Effectiveness


One way to assess whether a company successfully practices marketing is to assess its overall level of marketing effectiveness. Marketing effectiveness is based on five dimensions, including a firm’s degree of holding to a customer-oriented philosophy, strategic marketing orientation, ability to gather relevant and timely market intelligence, level of integration of the marketing organization, and operational efficiency.

1. Customer Orientation
Successful marketing is based on being able to meet customer needs. Marketing is highly dependent on knowing, analyzing, and meeting customer needs as opposed to a singular focus on the product or general sales. Does the company respond quickly to customer issues or distress?

2. Strategic Orientation
From a strategic point of view, the marketing professionals in a company must function with the long-term strategy and success in mind. This typically takes the form of formal marketing planning and a culture of strategic, long-term thinking.

3. Market Intelligence
To serve customer needs, a company and its marketing professionals should have as much objective information regarding its status in the marketplace as possible. In addition to having the necessary information for planning and resource allocation from their own internal data and sources, key decision-makers should also have at their disposal up-to-date information about the external market.

4. Organizational Integration
Based on the competitive intelligence the company gains, a company must react in an integrated and efficient manner to maintain its level of customer service and, if necessary, adjust its strategy. Integration focuses on how well marketing and other departments in an organization communicate and work together.

5. Operational Efficiency
Operational efficiency speaks to how effective the organization is at its business. How well are the decisions made at the higher levels of marketing filtered throughout the organization? How responsive is the marketing department for problems and issues? How responsive is the organization to customer requests?


Performance Measurement


Marketing performance metrics or key performance indicators (KPIs) are useful not only for marketing professionals but also for non-marketing executives. From the chief executive officer to the vice president of sales, the senior management team needs marketing KPIs to gauge how marketing activities and spending impact the company’s bottom line. This is particularly important since companies are prone to reduce marketing budgets during economic downturns, downsizing, and mergers.

As marketers face more and more pressure to show a return on investment (ROI) on their activities, marketing performance metrics help measure the degree to which marketing spending contributes to profits. It also highlights how marketing contributes to and complements, initiatives in other areas of the organization, such as sales and customer service.

Other reasons why companies evaluate marketing performance include:
Monitoring marketing’s progress towards its annual goals
Determining what areas of the marketing mix – product, price, place, and promotion – need modification or improvement to increase some aspect of performance
Assessing whether company goods, services, and ideas meet customer and stakeholder needs
Establishing marketing performance metrics is integral to helping brands satisfy customers, establishing a clear company image, being proactive in the market, and fully incorporating marketing into the company’s overall business strategy.
To measure the effectiveness of a marketing campaign, a business needs to agree upon the goals of the campaigns and the KPIs (key performance indicators) that it needs to track. For example, the goal of a campaign could be the increase in a company’s online brand reputation. A good KPI to measure the success of this campaign would be the “number of website visitors.”