MS503 Journal Week 4

By: John Kidd Jr on 12/22/2025 12:27 AM

Marketing Metrics

Metrics are quantifiable measurements we use to assess performace and progress across various domains.

"If you can measure it, you can manage it" - Dr. Hue Henry

This is measuring you share of the market, using revenue. It is found by dividing sales revenue by the entire market's sales revenue. So if your entire market is work $100, and $10 of that $100 is from your company, you own 10% of the market. This metric is used to measure your competitiveness within your market.

Unit market share is almost exactly like Revenue Market Share, expect measuring by volume of units sold rather than revenue. Same example, if 100 items were produced for your market, and 10 were yours, that gives you a 10% share. This is also used to measure how well you compete in your market.

Category Penetration

This is a measure of how many people within a market purchase a particular category. This is especially helpful when creating new categories, but can also aide with researching which category to target your next product to. This is found by dividing the number of purchasers within a category by the total population of the market.

Brand Penetration

This is very similar to the category penetration, but relating directly to your brand rather than a product category. This is helpful to measure how well known you are within a market. This is found by dividing the number of people who purchase your product and the total population of the market.

Found by dividing your brand penetration by the category's total penetration. This will give you an indication of how your brand is performing relative to others within the category.

This measures how well you are competing within your market directly with your competition. You find this by taking your largest competitor's market share and using it to divide your own comparative market share. This will tell you how you stack up directly. As an example, if your largest competitor has 12% market share, and you hold 2.4% that would give you a 20% relative market share. You can use either units or revenue to generate this metric.

This is a collection of metrics, whose data is typically mined by consumer surveys... the ones you typically get random popups for while browsing the internet with values from 1 to 5. They provide a ton of valuable data that can be tailored to your specific needs for market research.

Unit Margin

This is the amount of revenue per unit after costs. Can be found by subtracting all the per unit costs from the total regular sale price, and will tell you how much money you will actually make per sale.

Margin %

This is a percentage to show how much of the unit price is pure margin. Found by dividing the unit margin by the unit price.

Average Price Per Unit

Sometimes the price per unit may need to be adjusted for differing reasons like sales or permanent price reductions. The average price per unit shows the average price each unit has been sold for. This is calculated by dividing the total unit revenue by the number of units sold.

Variable and Fixed Costs

Variable costs are those that scale with the number of units sold. These can be things like the cost to produce packaging, some license costs, platform costs, etc. where fixed costs are the costs you pay once which could also include certain license costs, employment costs, etc. These are calculated by doing a budget and simply seperating the costs between those that vary with units sold and those that do not.

Contribution per Unit

This is the unit price, less any variable costs. This can be calculated by adding up all variable costs for a unit and subtracting it from the current unit price.

Break-Even Sales Level

This is the number of units that need to be sold to break even, or zero out, the costs and revenue. This can be found by dividing the fixed costs by the contribution per unit value.

Target Profit / Target Revenue / Target Volume

The profit target is... just that. The target number of profit the team wants to earn from sales.

The target volume is the break-even sales level adjusted to include the profit target.

The target revenue is found by multiplying the target volume by the average price per sale.

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