Marketing Management, 16th Edition

Measuring Marketing Productivity

Although we can easily quantify marketing expenses and investments as inputs in the short run, the resulting outputs (such as broader brand awareness, enhanced brand image, greater customer loyalty, and improved new-product prospects) may take months or years to manifest themselves. Meanwhile, internal changes within the organization and external changes in the marketing environment may coincide with the marketing expenditures, making it hard to isolate their effects.28

Nevertheless, marketing research must assess the efficiency and effectiveness of marketing activities. Two complementary approaches to measuring marketing productivity are (1) marketing metrics to assess marketing effects and (2) marketing-mix ...