Measurement is extremely important in the world of business. They are used to make informed decisions to ensure success. As discussed in class, measurement affects all areas of business, including: finance, accounting, production, and marketing. As we learned, measurements are often used as a competitive advantage. To expand upon this, I will focus on the world of marketing as that is my career focus.
Marketing is constantly using measurements. They are used to project sales, customer satisfaction, distribution routes, and advertising outlets. One of the newest ways in which marketing uses measurement is through a Strategic Performance Measurement System. This system. This is a comprehensive systems which takes the industrial structure measurements, performance measurements, market analysis, and organizational objectives to detect new consumer markets and demands. If this is done properly it can dramatically increase the success a firm has.
Along with a Strategic Performance Measurement System, many marketing firms are hiring Web Analysts to break down their website traffic to determine how customers use their website. This directly correlates to what we discussed in class about website and gaining a competitive advantage. This advantage is partly achieved because understanding how and why people do what they do on the Internet, is like gaining insight into your consumers thought. If you understand your customers thought process, it become increasingly easier to adapt your marketing strategy to fit your customers needs and wants.
To learn more about marketing and gaining a competitive advantage you can visit these websites:
http://www.itchannel.ro/faa/402_pdfsam_ICEA_FAA_2009.pdf
http://www.foresightresearch.com/competitive_advantage.htm
http://www.springerlink.com/content/u60402812v775034/
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Since I am not very business oriented, I looked up more information on Strategic Performance Measurement Systems. I found that they use it to capitalize on market opportunities and defend against competitive challenges, which is a great example of how important measurements are. A business could fail without taking the proper measurements, such as performance measurements mentioned above. Also, if a business is not measuring its competition, it could easily find itself out of business in the future. Finance, accounting, production, and marketing are all major areas of business that could cause failure if a company fails to use the proper measurements. I am especially interested in this topic because I would like to run my own business someday. I have learned that I need to make sure I am taking the proper measurements to keep myself in business.
ReplyDeleteMeasurements are as important to Business as they are to any sort of established institution. Take a look at a University as a Business. A university has to measure how many students it has and how many it graduates every year. Another important measurement to a university would be how many graduates already have jobs. Measurements are used all the time, in many different business related fields.
ReplyDeleteBefore we discussed it in class, I didn't know that businesses could track how costumers navigate their websites. Now that I know that it makes sense. If you want people to know about or purchase your product you will need to know they are able to see it. If they are getting people in stores but not on the website they know that either there is not enough advertising or the website is too difficult for costumers to understand. It is important that marketers know that people are able to get to their product and are able to measure that.
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