Measuring and Improving Return on Marketing Invest.. (ROMIDASHBOARD)
Measuring and Improving Return on Marketing Investment with actionable dashboards: which marketing actions yield most returns in fast moving economies?
Start date: 01 Jun 2009,
End date: 31 May 2013
"Driving profitable growth is the No.1 priority of companies and their leaders across the world. While many look to marketing as a prime responsible for creating and sustaining that growth, they are often disappointed in the ability of marketing managers to deliver on the promise. Faced with increased pressure from demanding customers, powerful channel partners and activist shareholders, companies need to measure the return on their marketing investments (ROMI) so that they can make informed decisions to achieve their business objectives. In particular, the development of econometric marketing mix models enables organizations to achieve competitive advantage and increase profitability through ROMI based marketing. Recently, organizations have began to summarize ROMI insights into marketing “dashboards”, with 40% of large US and UK companies report substantial efforts in this area. Unfortunately, current dashboards often fail to live up to their promises because they simply identify performance metrics and offer descriptive data on their progress: they do not establish empirical relations among the metrics, perform forecasting and what-if analysis and link them to financial consequences. This research proposal sets out to do just that for both mature and fast moving European markets.The research objectives are:1) to empirically model how marketing actions (such as new product launch, (re)branding, pricing, adding new channels and communication activities) drive firm top-line and bottom-line financial performance;2) to develop new dashboard tools based on this model to aid policy makers in organizations improve their return on marketing investment;3) to compare and contrast the calculated return on marketing investment in fast-moving economies versus mature markets in Europe and the US. These insights will derive models, dashboards and case studies, and be communicated through both an academic paper and a practitioner-oriented book."
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