Posted in Marketing and Strategy Terms, Total Reads: 201
Definition: Marketing Metric Audit Protocol
Marketing metric audit protocol is the process of connecting marketing activities of a firm to the short term and long term cash flows of the firm. Marketing activities are linked to financial performance of the company through marketing metric audit protocol. Thus any marketing activity such as sales promotions is linked to sales volumes or market share of the firm which in turn is connected to cash flow drivers like profit margins and ultimately connected to actual cash flows.
Thus this mapping of marketing activities carried out by firm to actual cash flow generated by firm is done using marketing metric audit protocol (MMAP).Thus while working with MMAP it is important to find links between marketing activities and cash flow.
Metrics used to identify links are having characteristics as relevant, predictive, objective, dependant, causal and quality confirmed. So MMAP helps to facilitate forecasting of marketing activities on impact on company and also improves the returns on marketing activities employed by the firm.