How to Evaluate a Marketing Plan

How to Evaluate a Marketing Plan
Coming up next: The Role and Responsibilities of Financial Managers

You're on a roll. Keep up the good work!

Take Quiz Watch Next Lesson
 Replay
Your next lesson will play in 10 seconds
  • 0:04 Marketing Plan Evaluation
  • 1:17 Return on Investment (ROI)
  • 2:12 Customer Satisfaction
  • 2:47 Brand Value
  • 3:34 Market Share
  • 4:43 Lesson Summary
Add to Add to Add to

Want to watch this again later?

Log in or sign up to add this lesson to a Custom Course.

Log in or Sign up

Timeline
Autoplay
Autoplay
Speed

Recommended Lessons and Courses for You

Lesson Transcript
Instructor: Elissa Vaughn

Elissa is a professional content writer with a certification in inbound marketing, BA in history, and a decade of experience in retail sales and marketing.

Marketing plans are evaluated to measure their impact on companies and consumers. In this lesson, we will explore how to evaluate marketing plans through customer satisfaction and brand value surveys, Return on Investment calculations, and market share research.

Marketing Plan Evaluation

Adam is a marketer for a company that manufactures laundry detergent. Lavender is popular this year, so his boss asks him to create a marketing plan for the company's lavender-scented product line. The product line is set for a spring relaunch, so Adam creates a marketing plan that includes social media marketing, direct mail, product giveaways, print ads, and TV commercials.

When Adam finishes his launch, his boss asks him to examine the results of his spring marketing plan before he creates a new summer marketing plan for the lavender-scented products. What's Adam's next step?

What Adam needs to do is to perform a marketing plan evaluation. An evaluation reveals the overall impact of a marketing plan. A simple way to think of this is to ask yourself the following questions:

  • Did the plan produce a good profit for the company?
  • What did customers think?
  • Did the plan help the company maintain its strength in the market?
  • What was the impact on the company's brand?

These questions simply translate to the marketing evaluation process of ROI, customer satisfaction, market share, and brand value. In this lesson, you will learn the basics of how to answer these questions.

Return on Investment (ROI)

Return on investment (ROI) is used to evaluate whether a marketing budget produced a desirable profit. This is an important tool used to measure the financial performance of a marketing plan.

Now get your calculator out. To find the ROI of a marketing plan, you must subtract the cost of the marketing plan from the sales generated by the marketed products. This will reveal the profit you made on the marketing plan. Divide that number by the cost of the marketing plan, and multiply that answer by 100 to create your ROI percentage.

For example, Adam's company invested $4,000 into his spring marketing plan. The sales that resulted from that plan were $6,000. Subtract $4,000 from $6,000 to reveal a profit of $2,000. Then divide $2,000 into $4,000 and multiply the answer by 100 to reveal an ROI percentage of 50%.

Customer Satisfaction

Customers are the ones purchasing products, so their reactions to marketing campaigns matter. An effective method for understanding customer satisfaction, or how customers feel about a company's marketing strategies, can be determined by using surveys. Surveys consist of questions that gather information about individuals, and they can be conducted by phone, in person, by mail, or online. For example, Adam asked customers if they would buy the lavender-scented product line again, recommend to a friend, what they would improve, and how they felt about certain advertisements.

Brand Value

A company's brand sets it apart from other companies. This includes its name, logo, motto, product design, color scheme, and product quality, and its brand value is the strength of that company's brand against its competition. From an investor's standpoint, a strong brand name adds considerable financial value to a company.

To unlock this lesson you must be a Study.com Member.
Create your account

Register to view this lesson

Are you a student or a teacher?

Unlock Your Education

See for yourself why 30 million people use Study.com

Become a Study.com member and start learning now.
Become a Member  Back
What teachers are saying about Study.com
Try it risk-free for 30 days

Earning College Credit

Did you know… We have over 160 college courses that prepare you to earn credit by exam that is accepted by over 1,500 colleges and universities. You can test out of the first two years of college and save thousands off your degree. Anyone can earn credit-by-exam regardless of age or education level.

To learn more, visit our Earning Credit Page

Transferring credit to the school of your choice

Not sure what college you want to attend yet? Study.com has thousands of articles about every imaginable degree, area of study and career path that can help you find the school that's right for you.

Create an account to start this course today
Try it risk-free for 30 days!
Create An Account
Support