MKTG90026 Marketing Metrics
The Complete Exam Bible · Semester 2 2026MKTG90026 Overview
- Postgraduate
- University of Melbourne
- On-campus digital final
Marketing Metrics develops the ability to choose, calculate and interpret the measures managers use to evaluate marketing performance. The subject begins with metric ecosystems and the difference between an outcome KPI and a driver or diagnostic.
- Assessed by Two assignments and an end of semester exam
- Exam skill Choose the metric family before calculating
- Best check Write the denominator and unit first
- Revision route Mix conceptual choices with analytical scenarios
How MKTG90026 is assessed
| Component | Weight | Format |
|---|---|---|
| Individual assignment comprising review and application of one metric | 15% | Individual presentation deck submitted during the allocated metric week |
| Group assignment: Company Performance Analysis | 35% | Group performance-analysis report due in Week 12 |
| End of semester exam | 50% | Two-hour on-campus digital exam with conceptual and analytical multiple-choice sections |
What MKTG90026 covers
Follow the subject from KPI choice and customer measures through market, product, channel, pricing, promotion, digital and financial decisions.
Metric Ecosystems and KPI Choice
Objectives, outcome KPIs, driver metrics, diagnostics and decisionsMetric selection begins with the business objective and the decision a manager needs to make. This chapter separates outcome KPIs from driver and diagnostic metrics, then connects them in a measurement ecosystem.
- Business objectives and measurement
- Metrics, KPIs and diagnostics
- Outcome and driver relationships
- North Star measure logic
- Dashboard guardrails
- Decision ownership and boundaries
Brand Awareness, Attitudes and Satisfaction
Awareness, attitude, usage, satisfaction, advocacy and NPSCustomer perception metrics describe distinct stages rather than one general idea of brand strength. Awareness concerns memory, attitude concerns evaluation, usage records behaviour, satisfaction follows experience and advocacy captures stated recommendation.
- Unaided and aided awareness
- Functional and emotional attitudes
- Usage measures and context
- Satisfaction and expectations
- Promoters, passives and detractors
- Survey design and comparison
Market Share and Customer Penetration
Share, relative share, geographic indexes, penetration, wallet and usageMarket share is an outcome that can be decomposed into several customer mechanisms.
- Value and unit market share
- Relative market share
- BDI and CDI
- Brand and market penetration
- Share of wallet
- Heavy-usage intensity
Margins, Costs and Break-Even
Margin, markup, contribution, break-even and target volumeMargins and profits connect marketing decisions with unit economics.
- Unit margin and markup
- Gross, operating and net margin
- Channel price relationships
- Variable and fixed cost
- Contribution per unit
- Break-even and target volume
Product Growth and Portfolio Effects
Trial, repeat, growth, CAGR and cannibalisationProduct and portfolio metrics convert stated trial intention into a transparent volume forecast, then test how growth affects the existing range.
- Trial and adjusted trial rate
- Projected trial volume
- Repeat buyers and volume
- Year-on-year growth
- CAGR and future value
- Cannibalisation and portfolio value
Retention and Customer Lifetime Value
Retention, churn, acquisition cost and lifetime value modelsCustomer profitability moves from current-period revenue and cost into the expected value of a relationship.
- Customer counts and recency
- Retention and churn
- Customer profit and ARPU
- MRR, CAC and CRC
- Simple and gross-margin CLV
- Recurring and discounted CLV
Sales Force, Pipelines and Distribution
Coverage, pipeline value, velocity, distribution and inventorySales and channel metrics connect capacity, opportunity progression and product availability.
- Sales workload and coverage
- Territory goals and potential
- Sales effectiveness and compensation
- Weighted pipeline and velocity
- Numeric, ACV and PCV distribution
- Availability and inventory efficiency
Pricing Metrics and Demand Elasticity
Average prices, premiums, indexes and elasticityPricing metrics compare the price actually achieved with relevant customer, order and competitor bases. This chapter distinguishes weighted from unweighted average selling price, AOV from ARPU, and price premium from several price indexes.
- Cost-plus pricing
- Weighted and unweighted ASP
- AOV and ARPU
- Price premium benchmarks
- Relative and competitive indexes
- Price elasticity of demand
Promotion Lift and Profitability
Baseline, increment, lift, discount leakage and pass-throughPromotion metrics separate the baseline expected without marketing from incremental sales created during an event.
- Baseline and incremental sales
- Promotional lift and lift factor
- Marginal promotional profit
- Depth, frequency and redemption
- Promotion ROI
- Pass-through and price waterfall
Advertising and Digital Performance
Reach, frequency, GRP, CPM, conversion, acquisition and ROASAdvertising metrics trace media delivery, message response, conversion and business outcome.
- Reach, frequency and impressions
- GRP, TRP, CPP and CPM
- Spend and impression share of voice
- Viewability, CTR and CPC
- Conversion, CPA and ROAS
- Sessions, users and abandonment
Marketing Returns and Investment Decisions
Profit, ROI, payback, present value, NPV, MER and ROMIMarketing finance metrics connect actions with revenue, operating profit, investment and time. This chapter compares return on sales, ROI, payback, present and future value, NPV, ROAS, MER and ROMI.
- Net profit and return on sales
- Marketing share of sales
- ROI and payback
- Present and future value
- Net present value
- ROAS, MER and ROMI
It then moves through customer perceptions and relationships, market position, margins and break-even, product projections, customer lifetime value, sales pipelines and distribution, pricing, promotion, advertising, digital behaviour and financial returns.
The central challenge is not advanced algebra. It is breadth and boundary discipline.
Many formulas share familiar numerators while changing the denominator, benchmark, population or time period. Margin is not markup. Lift is not lift factor. Attributed revenue is not incremental contribution. A high response rate can coexist with fewer total customers, and a positive sales lift can coexist with a promotion loss.
Strong answers keep those distinctions visible and stop before the evidence supports a causal claim.
The final is an on-campus digital, closed-book multiple-choice exam supported by a printed formula sheet and rough-work pages. Its conceptual section rewards precise definitions and critical evaluation. Its analytical section presents scenarios that require calculations before selecting the most appropriate answer.
This guide follows that structure: each chapter maps the relationship among measures, works an original numerical example, diagnoses common distractors and ends with a managerial decision. The practice and exam-morning pages then mix the families so you must identify the correct metric before using the calculator.
Worked example · free
Original break-even and target-volume drill
- 1Contribution per package is 80 minus 44, which equals 36 dollars.
- 1Break-even volume is 72,000 divided by 36, which equals 2,000 packages.
- 1The target requires contribution to cover 72,000 dollars of fixed cost plus 36,000 dollars of profit.
- 1Target volume is 108,000 divided by 36, which equals 3,000 packages.
- 1The target sits 1,000 packages above break-even, so capacity and demand must support the extra volume.
Key terms
- Key Performance Indicator
- A metric selected to judge progress against an important business objective.
- Diagnostic Metric
- A supporting measure used to explain why an outcome KPI moved.
- Net Promoter Score
- An advocacy index calculated as the percentage of promoters minus the percentage of detractors.
- Relative Market Share
- A brand's sales divided by the sales of its largest competitor on a compatible basis.
- Contribution Margin
- Selling price less variable cost, available to cover fixed cost and then profit.
- Break-Even Volume
- The unit volume at which total contribution exactly covers fixed cost.
- Cannibalisation Rate
- Sales lost from existing products divided by sales of a new product.
- Customer Lifetime Value
- The expected economic value of a customer relationship across future periods under stated assumptions.
- Weighted Pipeline Value
- The sum of each deal value multiplied by its stage probability.
- Price Elasticity
- Percentage change in quantity demanded divided by percentage change in price.
- Promotional Lift
- Incremental promotion sales divided by the baseline sales expected without the promotion.
- Return on Ad Spend
- Attributed advertising revenue divided by advertising spend.
- Net Present Value
- The present value of future cash flows minus the initial investment.
- Marketing Investment Return
- Incremental contribution after marketing spending divided by that spending.
MKTG90026 FAQ
What does the final exam look like?
The published final is an on-campus digital LMS quiz with a reading period followed by two hours of writing. It contains a conceptual multiple-choice section and a larger analytical multiple-choice section. Each item provides four options with one most-correct response, so definition, denominator and interpretation all matter.
Is a formula sheet provided?
Yes. The exam-review material says a hardcopy formula sheet is supplied, along with rough-work pages. Treat it as navigation support rather than a substitute for preparation: you still need to recognise the metric family, know the denominator and understand what each result can support.
How is the subject assessed?
The official assessment record lists an individual metric review and application task, a group company performance analysis and an end of semester exam. The weights are 15%, 35% and 50%, respectively, which sum to 100%. The two assignments emphasise accurate calculations, interpretation and business application.
Which parts usually require the most care?
The difficult step is often choosing the right base rather than doing the arithmetic. Margin versus markup, total versus incremental sales, attributed revenue versus contribution, and users versus sessions all create plausible distractors. Write the denominator and unit before entering numbers, then check whether the direction makes sense.
Are practice exam materials available?
The subject provides a mock exam interface plus weekly practice quizzes, and the exam-review lecture directs students to workshop solutions and lecture examples. The available university materials does not contain a past final paper with official solutions. Every question in this guide is original and models the published question types.
What is the best revision sequence?
Start with definitions and denominator families, then recompute each worked example without looking at the answer. Next, mix chapters so you must identify the metric before calculating. Finish with timed conceptual and analytical choices, keeping an error log for denominator, sign, percentage-point, attribution and profit-versus-revenue mistakes.
Questions students ask in each MKTG90026 chapter
- How do I choose between a KPI and a diagnostic?
- Use the objective as the test. The KPI should represent the result management wants, while diagnostics explain the route or failure mechanism. A traffic count can diagnose acquisition, but retained active users may be the outcome when durable adoption is the actual goal. Chapter 01 · Metric Ecosystems and KPI Choice
- What is the difference between awareness and attitude?
- Awareness tests whether the brand can be recalled or recognised, while attitude asks how the brand is evaluated. A brand can be highly familiar and still be disliked, so the two measures should remain separate and be compared as adjacent stages. Chapter 02 · Brand Awareness, Attitudes and Satisfaction
- Why can unit and value share move differently?
- Price and product mix can change the revenue captured per unit. A brand may sell more low-priced units and gain unit share while losing value share, or shift toward premium products and grow value share faster. Interpret both before naming the driver. Chapter 03 · Market Share and Customer Penetration
- Why are margin and markup different?
- They use the same dollar difference but different denominators. Margin divides by selling price, while markup divides by cost. A correct subtraction can still produce the wrong percentage if it is divided by the wrong base. Chapter 04 · Margins, Costs and Break-Even
- Why is adjusted trial lower than stated intention?
- Definite and probable intentions receive different behavioural weights, then awareness and distribution reduce the reachable opportunity. The calculation recognises that stated interest, brand knowledge and product access are separate conditions for a real first purchase. Chapter 05 · Product Growth and Portfolio Effects
- Why must new customers be removed from retention?
- Retention measures survival of a starting cohort, while new customers were not present at the start. Subtracting acquisitions from ending customers prevents growth from hiding losses and keeps the retained numerator compatible with the customers initially at risk. Chapter 06 · Retention and Customer Lifetime Value
- What is the difference between pipeline value and sales velocity?
- Weighted pipeline applies stage probabilities to deal values at a point in time. Sales velocity combines opportunity count, deal size, win rate and cycle length into a value-per-time diagnostic. Both depend on clean stages and compatible definitions. Chapter 07 · Sales Force, Pipelines and Distribution
- Why can weighted and unweighted average price differ?
- An unweighted average gives every product or segment equal influence, while weighted ASP reflects the units actually sold. A premium product with most of the volume can pull weighted ASP well above the simple average without any item-level price change. Chapter 08 · Pricing Metrics and Demand Elasticity
- What is the difference between lift and lift factor?
- Lift divides incremental sales by baseline, while lift factor divides total promotion sales by baseline. If total sales are 1.8 times baseline, lift factor is 1.8 and incremental lift is 80%, not 180%. Chapter 09 · Promotion Lift and Profitability
- What is the difference between reach and impressions?
- Reach counts unduplicated people with an opportunity to see the ad, while impressions count exposures. One reached person can generate several impressions, so average frequency connects the two measures. Chapter 10 · Advertising and Digital Performance
- Why does NPV discount later cash flows?
- A dollar received later is worth less than a dollar received now when the discount rate is positive. NPV converts each future cash flow to present value before comparing their total with the initial investment. Chapter 11 · Marketing Returns and Investment Decisions
How to study for the exam
Use three passes. In the first pass, build a one-line card for every metric containing its purpose, numerator, denominator, unit and most important limitation. Group related measures so contrasts stay visible: margin with markup, market share with penetration and wallet, lift with lift factor, and ROAS with ROMI. In the second pass, recompute every original worked example and change one input to test direction.
Higher fixed cost should raise break-even, lower retention should reduce lifetime value, and a later cash flow should have a smaller present value. In the third pass, mix conceptual and analytical questions under time. Before calculating, identify the metric family and write the requested output. After calculating, add one sentence on meaning and one on the assumption that could overturn it.
Use the supplied formula sheet during revision so you learn its layout. Complete the official mock and weekly quizzes, then review workshop solutions for the reasoning behind the best option. Keep a mistake log organised by error type and repair repeated errors across every chapter where they appear.
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