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Abstract

There is increasing scrutiny of marketing activities and a growing demand for greater accountability of the marketing function. This article asserts that such accountability cannot be achieved until generally accepted standards for the measurement of marketing outcomes are adopted. The article identifies three broad types of marketing outcomes and suggests that two of these are candidates for the development of standardized measures. The role of standards, essential characteristics of standards, and how they may be developed are addressed. Twelve general propositions related to standards for assessing marketing outcomes are offered.
... Maximum data gathering process today is leaded by trends of specific brands and markets, but not in measuring marketing inputs and output (Stewart, 2008). For this reason, raw data are not much of use for marketing planning and outcome measurement. ...
... MROI must be an inherently financial construct (Stewart, 2008). No measure or measurement system is complete without a specific link to financial performance. ...
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p> The competitive race of banking sector in the world economy is rapidly enforcing the importance of brand valuation. The acceptance of brand valuation has been questionable in several times due to the subjective measurement that derives from customers’ volatile perceptions. At the same time, financially focused model provides only an assessment of the economic value of brand. It is still a challenging task to compute the brand valuation depending only on financial data. Interbrand technique (2004) is one of the best approaches of calculating brand value within the community of marketing. Our valuation approach followed the A.C. Nielsen valuation model (2006) for valuing brand which is multiple of “ Annual sales of representative brand ” , “ Net operating margin ” , “ Relative brand strength ”, and “ Perpetual annuity NPV discount factor ” . This paper explores the B rand V aluation (BV) and identifies the relative position of banks based on measuring marketing contribution. Data have been collected from first generation private commercial bank’s annual reports and analyzed by using perpetual NPV continuous discount factor. The objective measure of BV for commercial banks was developed using Net Marketing Contribution (NMC), Relative Brand Strength (RBS) and Perpetual Net Present Value Continuous Discount Factor (PNPVCDF). The measures of brand valuation will ease the understanding regarding marketing profitability, brand performance and relative position in the competitive field. </p
... Marketing is a vital prerequisite of the industry's ability to strengthen its market share and minimize the impact of the competition (Camilleri & Camilleri, 2018); (Lockett, 2018). Other studies have explored the potential impact of marketing to business's bottom-line (GbolagadeAdewale & Oyewale, 2013); (Stewart, 2008); (de Ruyter et al., 2022). ...
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Marketing strategies and expenses are crucial for businesses' success and growth in today's dynamic marketplace. This paper explores the importance of targeted marketing efforts aimed at specific audiences and delivering high-quality products at competitive prices. However, challenges persist in the medical scheme sector, where transparency and specificity in marketing expenses are lacking, hindering the assessment of their value to customers. Despite acknowledging various reasons for stagnant membership, including affordability and entry barriers, notable increases in marketing expenses within medical schemes have complicated the situation. Poor marketing strategies have been associated with organizational underperformance, particularly within medical schemes with disproportionately high marketing expenses, often leading to failure due to governance shortcomings. Moving forward, prioritizing the development of strong brand identities, clear messaging, and effective customer engagement strategies is essential for insurance companies to thrive in a competitive market. Additionally, future research should explore innovative approaches to optimize marketing investments, enhance consumer value, and increase membership in medical schemes.
... It is an important tool for measuring marketing profitability, which must be an inherently financial construct (Stewart, 2008). MROI is the only measure that can be linked to financial results which will be credible as the firm is required to report its results in financial terms (Hasan et al., 2015). ...
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The core purpose of this research is to closely look at the brand value (BV) on the basis of marketing profitability and capitalization factor (CF). This study employed a financially focused model in order to determine a brand’s economic value and to determine the relative position of a brand. For assessing the brand value, seventeen second-generation private commercial banks of Bangladesh are considered. The data collected from banks’ annual reports are systematically analyzed for brand valuation following the perpetual net present value (PNPV) of the continuous discounting approach. A quantitative approach towards measuring brand value for commercial banks is developed based on interest income (II), marketing return on investment (MROI), net marketing contribution (NMC), and capitalization factor (CF). This valuation approach may be useful to track the brand strength of a bank, investment in banking products, namely loan and deposit compared to the investment in non-banking products, such as government securities and shares and may also help in marketing valuation along with financial valuation of a brand.
... It is an important tool for measuring marketing profitability, which must be an inherently financial construct (Stewart, 2008). MROI is the only measure that can be linked to financial results which will be credible as the firm is required to report its results in financial terms (Hasan et al., 2015). ...
Article
The aim of this study is to craft a strategic framework for managing diabetes and to develop a service blueprint to achieve treatment efficiency through Patient Support Program (PSP). Secondary data were collected from different published sources, and the primary data were collected through focus group discussions (FGDs) and in-depth interviews (key informant techniques). The PSP is designed in the context of Bangladesh and the ultimate objective of PSP is to aid the patients by educating and assisting them to manage the disease as well as to assure better lifestyle by ensuring treatment adherence.
... Dicha evolución del mercadeo ha conllevado un aumento en la apropiación de recursos hacia esa área (Stewart, 2008) que, aunada a la búsqueda de la eficiencia en el manejo de fondos, presiona a las directivas de las compañías y a sus departamentos de mercadeo para que revisen las inversiones desde la perspectiva financiera (Wills y Webb, 2007). ...
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Los resultados de las 384 encuestas aplicadas a los consumidores de jitomate de las poblaciones de Ixtepec, Juchitán, Tehuantepec y Salina Cruz, en la región del Istmo Oaxaqueño, México, son los siguientes: en cuanto a consumidores, el 73.06 % compra jitomate Saladet; el 36.6 % compra cada dos días; el 84.87 % compra de 1 a 2 kg/semana; el 79.34 % compra el jitomate en el mercado local; el 62.73 % lo utiliza para guisar; el 54.98 % dice que la principal característica de compra que busca es su precio. En cuanto a los proveedores, los resultados de las 73 encuestas aplicadas son los siguientes: el 40 % del jitomate lo traen de Oaxaca, el 91.94 % de los consumidores compra Saladet, el 48.39 % vende más de 21 kg diarios, el 56.45 % fija el precio con base en los costos, el 59.68 % se abastece cada tercer día.
... Marketing Management aims for the creation of long-term links with customers in order to obtain their fidelity, loyalty, and profitability (Anderson, Fornell, & Mazvancheryl, 2004). This objective has led companies to direct more resources towards their marketing activities Basu, 2008 andStewart, 2008), but it also requires them to justify these investments (Ambler, Kokkinaki, & Puntoni, 2004;Ward, 2003 andWills &Webb, 2007). ...
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Este artículo presenta un estudio de la relación del nivel de orientación al mercado (OM) y el desempeño financiero (DF) de Mipymes de Bogotá. La fuente primaria de información fue la escala MARKOR adaptada al contexto de las Mipymes en Bogotá. Los resultados fueron procesados con un conjunto de regresiones lineales simples que ayudaron a evaluar el impacto de cada dimensión de la OM en el DF. A continuación, cada una de las dimensiones de la OM (Generación de Información, Diseminación de la información, Planeación e Implementación de la Respuesta) fueron tomadas como variables independientes. Además, las Ventas Netas y la Utilidad Operacional, y sus relaciones con los activos; fueron usadas como variables dependientes. Finalmente, los resultados revelaron que ninguno de los 5 modelos probados fueron estadísticamente suficientes para concluir que el DF de las organizaciones es directamente impactado por la OM, dado que ninguno de los resultados anteriores mostró al menos un valor R ajustado superior al 75%.
... The contained data of financial statement have been reviewed and audited by the accountancy and accuracy. Maximum data gathering process today is leaded by trends of specific brands and markets, but not in measuring marketing inputs and output (Stewart, 2008). For this reason, raw data are not much of use for marketing planning and outcome measurement. ...
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Banking business is one of the wide spread industry with significant growth and importance in developed as well as developing countries. Marketing of financial services has become important recent days. It has been noticed that marketing contribution of the financial company like bank has important impact on profitability of that respective company. This article focus on the conventional public, private and Islamic banks of Bangladesh to observe the impact of advertisement and publicity as the tool for marketing contribution and its impact on banks profitability individually and platform wise. The identical contribution by advertisement and publicity of specific banks can show that the net marketing contribution can vary to its profitability despite time or use of banking platform rather individual marketing strategies. It indicates that all the banks should focuses on special service marketing strategies and tools to measure and monitor its marketing contribution to its profitability followed by long run brand image development.
... Halligan & Shah (2009) also stress the importance of getting found online through search engines and on sites used by millions of users every day such as Facebook and YouTube. For measuring success, it is important to build measurable, response-generating marketing programs around developed content for lead generation (Gagnon, 2014) therefore marketers must have specific measures in place to maximize their firm's value (Stewart, 2008). Even though there is no consensual online or content marketing sales funnel, online customers reportedly pass through different sales stages starting from prospects, emails leads to customers and repeat buyers (Clegg, 2012), those stages are similar in core to the classic AIDA (awareness, interest, desire, action) model 2 . ...
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A field experiment utilizing a new experimental approach to measuring advertising exposure which provides a range of levels of exposure was conducted in eight main test market and eight fringe cities for a global Fortune 500 company consumer durable product. The results showed: a) targeted rating points of advertising delivered are strongly related to advertising effectiveness, and b) this effect is attributable to advertising level and to whether the members of the target audience live close to or far from the broadcast source.
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The primary aim of this paper is to identify and analyze municipal performance strategies in Danish place and city branding and as a second aim also to analyze explanatory statements for the lack of data. Five municipalities had a performance management strategy with target setting and KPIs related to brand motives. KPIs were consistent with SMART criteria and directly related to brand motives. All first order indicators related to media and social media. Indicators relating to material impact within the municipality relied on available public statistics. Indicators for immaterial impact within or outside the municipality all require specific analysis. The explanatory statements can be aggregated into three main categories: Lack of funding and political support, uncertainty of methods, and the failing obligation for cities and municipalities to organize and publish data or other analytical information. Finally the aim is to propose a Brand Strategy Platform to support place and city brand investors in a more systematic approach to performance management.
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The authors propose that the revenue premium a brand generates compared with that of a private label product is a simple, objective, and managerially useful product-market measure of brand equity. The authors provide the conceptual basis for the measure, compute it for brands in several packaged goods categories, and test its validity. The empirical analysis shows that the measure is reliable and reflects real changes in brand health over time. It correlates well with other equity measures, and the measure's association with a brand's advertising and promotion activity, price sensitivity, and perceived category risk is consistent with theory.
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For too long, marketers have not been held accountable for showing how marketing expenditures add to share-holder value. As time has gone by, this lack of accountability has undermined marketers' credibility, threatened the standing of the marketing function within the firm, and even threatened marketing's existence as a distinct capa-bility within the firm. This article proposes a broad framework for assessing marketing productivity, cataloging what is already known, and suggesting areas for further research. The authors conclude that it is possible to show how marketing expenditures add to shareholder value. The effective dissemination of new methods of assessing mar-keting productivity to the business community will be a major step toward raising marketing's vitality in the firm and, more important, toward raising the performance of the firm itself. The authors also suggest many areas in which further research is essential to making methods of evaluating marketing productivity increasingly valid, reli-able, and practical.
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In January 2002, Donald R. Lehmann, Executive Director of the Marketing Science Institute, submitted a proposal for a JM Special Section, “Linking Marketing to Financial Performance and Firm Value.” The proposal included activities to promote interactions among marketing academics and practitioners, designed to advance research on this topic. I was excited about the opportunity to stimulate and publish new research, and after extensive discussions, the American Marketing Association and the Marketing Science Institute formally agreed to cosponsor the Special Section. Authors submitted their manuscripts through a paper competition as well as directly through JM. Donald R. Lehmann, the Consulting Editor, and a panel of distinguished scholars reviewed every submission. The panel included Tim Ambler, Gregory S. Carpenter, Robert Jacobson, V. Kumar, Roland T. Rust, and Rajendra K. Srivastava. All submissions underwent JM’s standard double-blind review process under my editorship, and members of JM’s E...
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This book discusses how compatibility standards may be used to ensure business success. It provides a framework for standards strategy and policy, together with a series of case-studies which interpret the economics of standards in practical settings. The book considers the problems of establishing a new standard in the market and winning standards contests. It studies the questions of how to maintain the profitability of a standard and how to compete within an established standard. It combines the strategic analysis with an evaluation of standards policy, and suggests ways in which markets and policy intervention may effectively be used together. Cases include contests for standards for video cassette recorders, digital audio tapes, personal computers, open computer systems, high-definition television, and Telepoint cordless phones. Standards have long been seen as a technical problem, yet in a large number of industries they are central to business strategy and technical aspects are only part of the effort needed for product success. They imply very different strategies and policies than for conventional products.
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The authors report the findings from an exploratory investigation of the use of UPC scanner data in the consumer packaged goods industry in the U.S. The study examines the practitioner community's view of the use of scanner data and compares these views with academic research. Forty-one executives from ten data suppliers, packaged goods manufacturers, and consulting firms participated in wide-ranging, in-person, interviews conducted by the authors. The interviews sought to uncover key questions practitioners would like to answer with scanner data, how scanner data is applied to these questions, and the industry's perspective regarding the success that the use of scanner data has had in each area. The authors then compare and contrast practitioners' views regarding the resolution of each issue with academic research. This produces a 2 × 2 classification of each question as “resolved” or “unresolved” from the perspectives of industry and academia. Along the diagonal of the 2 × 2, issues viewed as unresolved by both groups are important topics for future research. Issues deemed resolved by both groups are, correspondingly, of lower priority. In the off-diagonal cells, industry and academics disagree. These topics should be given priority for discussion, information exchange, and possible further research. Practitioners reported that scanner data analysis has had the most success and been most widely adopted for decision making in consumer promotions (i.e., coupons), trade promotions, and pricing. For example, logit and regression models applied to scanner data have revealed very low average consumer response to coupons which has directly led to reduced couponing activity. Managers also reported high levels of comfort with and impact from analyses of trade promotions and price elasticities. While industry views most of the issues in these areas to be resolved, academic research raises concerns about a number of practices in common commercial use. These include price threshold analysis and trade promotion evaluation using baseline and incremental sales. In product strategy, advertising, and distribution management, practitioners reported that the use of scanner data has had more limited development, success, and impact. In the case of new product decisions, scanner data use has been slow to develop due to the inherent limitations of historical data for these decisions and a heavy reliance on traditional primary research methods. In advertising, scanner data is widely analyzed with models, but confusion among practitioners is very high due to controversies about methods (e.g., what level of data aggregation is best) and conflicting results. In distribution and retail management, scanner data use has tremendous potential but a mixed track record to date. Thus, practitioners view the use of scanner data as unresolved for most issues in product strategy, advertising, and distribution. This view is largely, though not entirely, consistent with academic research, which has only begun to address many of the key questions raised by practitioners. In light of the large number of unresolved issues and mixed record of scanner data use to date, the authors offer a series of specific recommendations for immediate and long-term research priorities that are likely to have the greatest impact on commercial utilization of UPC scanner data. Topics of immediate priority include price thresholds and gaps, baseline and incremental sales, base price elasticity, competitive reactions, measurement of advertising effects, management of brand equity, rationalization of product assortments, and category management. Long-term priorities include a greater emphasis on profitability versus sales or market share, developing prescriptive models versus descriptive models, and the need for industry standards.