Research brings novel perspective to measuring marketing performance
Marketing performance is a multidimensional phenomenon, the control of which requires simultaneous use of multiple performance indicators. In practice, the sets of marketing metrics and control systems used by companies differ substantially from one another. Additionally, the performance implications of using different types of control systems vary from firm to firm: different control systems provide the best results for different types of businesses.
These are some of the findings of the dissertation research conducted by Johanna Frösén, M.Sc. (Econ.), at Aalto University School of Business. The research explores the use of marketing metrics, as well as the practices of measuring marketing performance and marketing control in Finnish companies.
Effectiveness of different forms of marketing control varies across business contexts
The research identifies five distinct profiles of performance measurement among Finnish companies, each focusing on different dimensions of marketing performance. All profiles are typically linked to specific types of industries, company size or market.
The findings of the research particularly underscore the multidimensionality and contextuality in marketing performance and its measurement. No universal 'best practices' for marketing performance measurement or marketing control exist - rather, both need to be carefully adapted to the individual firm's objectives, strategy, and business environment.
In addition to formal performance measurement, there are also other, complementary tools for a firm to control its marketing. Surprisingly, especially for small businesses, formal performance measurement is sometimes not even necessary – having a right kind of corporate culture may in some specific cases well suffice for controlling the relationship between the company and its markets.
For managers, the study provides new tools for developing a comprehensive understanding of the firm's marketing performance, as well as practical guidelines for developing comprehensive systems for marketing performance measurement and control.
The doctoral dissertation of Johanna Frösén, M.Sc. (Econ.), titled "Marketing Metrics, Marketing Performance Measurement, and Marketing Control," in the field of marketing will be examined at Aalto University School of Business on Friday, 26th of April 2013 starting at 12 noon.