Measuring marketing performance: a review and a framework

Abstract

Critics of marketing commonly allude to problems with its accountability and credibility. In order to address these issues, marketing professionals have been called on to demonstrate the contribution of marketing to firm performance. A better understanding of current research in marketing performance can better enable marketing managers to justify its expense. Given the foregoing, it was determined to (1) review the current status of marketing performance studies, and (2) develop a comprehensive, yet concise model to measure the performance of marketing. To begin, the main terms used in marketing performance are clarified. Then, a detailed review of marketing performance studies is provided. An integrated Model for Measuring Marketing Performance (MMMP) is then proposed. Finally, some conclusions are drawn and some directions for future research are suggested.

Introducing the religio-centric positional advantage to Indonesian small businesses

“…According to Morgan (2012) and Gao (2010), marketing is a very dynamic process so that MP is a multidimensional process that involves adaptability, effectiveness and efficiency. Adaptability is associated with the organization's ability to respond to environmental changes.…”

“…Efficiency is associated with the performance results ratio to the inputs needed to achieve it. Normatively, MP measurement involves an assessment of the marketing resources and capabilities as a source of excellence, the achievement of positional advantage, market performance and unit sales, market share, and financial performance (Gao, 2010). Other researchers explained MP as the ability of the company to achieve its objectives in regards to market share, sales growth, and increase in new customers and retaining existing customers (Merrilees et al, 2011;Prasertsang and Ussahawanitchakit, 2011).…”

Quantitative and qualitative measurement methods of companies’ marketing efficiency

“…Marketing performance is characterized as a multidimensional process that includes the three dimensions of effectiveness, efficiency and adaptability; the effectiveness and efficiency of an organisation's marketing activities with regard to market-related goals, such as revenues, growth, and market share (Gao, 2010). To understand marketing performance, multiple measures are needed because marketing performance pertains to customer acquisition and retention which is one of the main business objectives for majority of companies.…”

“…y. Gao (2010) Doing the right thing. Comparisons of performance to the goals formulated from the market strategy.…”

“…Even if top management increases marketing investment, marketers keep struggling with delivery of tangible marketing results back to the board room. Nowadays marketers face many challenges in an increasingly complex marketplace and addressing the wide range of stakeholders -prospects, customers, shareholders, partners, and vendors (Gao, 2010). Therefore the scientific problem of this research is: which marketing efficiency, effectiveness, and performance aspects at companies in Latvia are being evaluated, measured, and brought to attention.…”