Marketing metrics is a sword with two sharp edges. It highlights top stocks of the future. Investors from the finance world rarely appreciate the method. In fact, many may not be aware of it at all.
Start with the consumer decision-making process. Fast moving consumer goods are bought frequently. Buying expensive cars and new homes take place just once in a blue moon. Children’s choices are often overturned by parents. Soldiers in Iraq must eat whatever Washington buys. You must know how buying decisions are made, and how often.
Word-of-mouth matters for expensive purchases. Therefore, satisfaction levels of present owners will determine whether a celebrity switches from a Mercedes to a Jaguar. Boredom and promotions drive frequent purchases. Everyone will try a new soda, or switch to a soap bundled into a large discount pack.
The stocks to watch are the ones that hit markets with great new brands, although mature products can display resurgence with creative promotions. Delighted customers, and new ones queuing up for products and services, are key market trends for an investor to watch. Small-capital stocks generally show such movements regionally before moving on to national and world scales.
Benchmarking is a key aspect of marketing metrics for stock investing. Rates of market penetration and retention levels are reliable indicators of stocks with great futures. Managers invest serious funds to collect primary data for marketing metrics. Research companies quote exorbitant amounts for independent retail audits and for panel reports. You can reap rich rewards by taking notice of market trends.
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