Marketing Metric Audit Protocol(MMAP)

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Definition: Marketing Metric Audit Protocol(MMAP)

Marketing metric audit protocol or MMAP refers to the process of connecting marketing activities like advertising, promotions, events, sponsorships to the short term and long-term cash flows of the firm. These marketing activities are linked to the financial performance of the company in the year end through the marketing metric audit protocol. Therefore, any marketing activity such as the promotions or advertising are always directly linked to the sales volume or the market share of the firm. These in turn are connected to the cash flow drivers like operating profits and profit margins and penultimately connected to the present cash flows of the firm.

While working with MMAP it is important to find links between financial performance and marketing activities. MMAP helps in forecasting the marketing activities based on the financial status of the company. It also helps review the return on marketing activities the firm employs.

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.

Marketing Metric Audit Protocol (MMAP)

Importance of Marketing Metric Audit Protocol (MMAP)

The process of marketing metric audit protocol has different steps like identifying cash flow drivers, and identifying intermediates of marketing outcomes. This helps them differentiate between terms like cost per measure and redemption rate. They help them identify conceptual links, which in turn help them to link various marketing activities with the financial activities in turn with the present cash flows. They also help them figure out causal links. These causal links then let them find connections between uncertain causes and marketing activities. These help them get a clear idea of whether any tests or appropriate validation in required or not.

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.

Marketing performance measurement cash flow is the ultimate metric to form links between marketing activities and financial activities. This occurs through the validation of intermediate marketing measures. This validation facilitates forecasting and return improvement eventually. Intermediate marketing outcomes refer to measures like sales volume, price premium and market share and financial metrics are profit margins. This helps them to do detailed documentation regarding psychometric properties of measures and validate specific information with respect to reliability and range of use. All this happens particularly in terms of validity and sensitivity with respect to the financial metrics.

Advantages of Marketing Metric Audit Protocol (MMAP)

1. Provides ample proof to connect marketing activities with the financial activities which later helps justify why these marketing activities took place.

2. Connects marketing activities with sales volumes and market share making sure that resources are being efficiently utilised.

3. Leads to them developing conceptual links between marketing activities like advertising and financial metrics like profit margins.

Disadvantages of Marketing Metric Audit Protocol (MMAP)

1. May not provide the correct analysis and may lose out on particular links between marketing and financial activities.

2. May lead to ineffective advertising, which may or may not lead to ample marketing activities.

3. Marketing activities may get hampered due to incorrect linking between marketing activities and the firm’s cash flows.

Example of Marketing Metric Audit Protocol (MMAP)

Let’s take the example of Apple. They link their marketing activities with their profits and more essentially their sales volume and their target audience. All their TV advertisements for example in India are aimed at their target audience. Their advertisements are very minimalistic and exactly target their loyal customers and deliver their needs in the advertisements.

Hence, this concludes the definition of Marketing Metric Audit Protocol(MMAP) along with its overview.

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