BENCHMARKETING Meaning and
Definition
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Benchmarketing is a term that refers to the practice of analyzing and comparing marketing strategies, methodologies, or campaign performance against industry standards or competitors' best practices. It involves conducting comprehensive research and evaluating key performance indicators (KPIs) to determine the effectiveness and success of marketing efforts.
The process of benchmarketing entails identifying the specific areas or aspects of marketing that require improvement or optimization. This includes analyzing metrics such as customer acquisition, conversion rates, customer retention, brand awareness, and market share. By benchmarketing, businesses aim to identify gaps in performance and make informed decisions to enhance marketing strategies, drive growth, and gain a competitive edge.
Benchmarketing relies heavily on data analysis and insights. It involves collecting and processing relevant data from sources such as market research, consumer feedback, competitor analysis, and internal marketing analytics. This data is then analyzed and compared to industry benchmarks and competitor performance to gain insights and identify areas for improvement.
The findings and insights derived from benchmarketing are essential for developing actionable marketing strategies and setting realistic goals and targets. It allows businesses to identify successful marketing tactics and learn from industry leaders, enabling them to adapt and adopt best practices to improve their overall marketing performance.
In summary, benchmarketing is a strategic process of evaluating and comparing marketing efforts against industry standards and competitors' performance to identify potential areas for improvement and drive marketing success.
Etymology of BENCHMARKETING
The word "benchmarketing" is a combination of two terms: "benchmark" and "marketing".
1. Benchmark: The term "benchmark" originated from the Old English word "benc", which means "a long seat or pew". The term was later derived from carpentry, where a "benchmark" referred to a marking made on a workbench to measure and create standard dimensions. Over time, this evolved to represent a standard or reference point to measure or compare things against.
2. Marketing: The term "marketing" comes from the Latin word "mercatus", which translates to "marketplace". It refers to the activities involved in promoting, selling, and distributing products or services to consumers.
Combining these two terms, "benchmarketing" emerged as a word that describes the practice of utilizing benchmarks or reference points in marketing strategies.
