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Presented by Group 2: Benedict Kevin Hoang Vu Roel Molina Yang Yang » Del I. Hawkins Professor of Marketing Various marketing Journals & Textbooks » Roger J. Best Associate Professor of Marketing Journals & Textbooks » Charles M. Lillis Vice President of Strategic Marketing for US WEST Inc. Various Journals Marketing executive • Positive: Initial research into measuring marketing productivity. • Negative: Out dated » A ratio of output from some activity to the input required by that activity. Marketing productivity = marketing output divided by marketing input. » Bucklin's definition adjusted Sevin's formula. » Equate marketing output with the total time, place, form and possession utility » What does top management expect the marketing function to deliver? => The combination of relative market share and price position. » Marketing output for an individual firm as: Marketing Output=(Relative market share) x (Relative Price) » Marketing cost - marketing input. » The nature of data base available => limited the percent of sales measure. » Marketing input= Marketing expenditures/sales » Marketing Productivity Formula: Relative Market Share x Relative Price Marketing Expenditures/sales » Marketing Productivity Score (MPS) – In isolation it has no meaning ! » Marketing Productivity Index (MPI) » PIMS Data Base – firms pay a fee to join PIMS » Function of PIMS Data Base » Sources of Data Base » Weaknesses – sensitive data » Operational Definitions of PIMS Variables (Table 1) » Relative Product Breadth (RPB) » Number of Competitors (NC) » Relative Product Quality (RPC) » Relative Customer Size Range (RCSR) » Served Market Growth (SMG) » Number of Immediate Customer (NIC) » Purchase Amount Immediate Customers (PAIC) » Importance of Auxiliary Services to End User (IASE) » Frequency of Product Changes (FPC) » Customization (C) » Focused on businesses that dealt in consumer durables » 135 firms samples » Correlation matrix » Multiple regression method » R² is significant » Model is Reasonably stable » Different Industries, different marketing productivity » Supports the overall structure of the model developed for the durables industries. » PIMS DATA BASE » Communication » Comparison Purposes » Old Marketing Principle » Update Marketing Concepts » Marketing Productivity Analysis » Environment » Competition » What is marketing productivity? What problems do we face in measuring productivity? How can we avoid them? » What are the drawbacks/limitations of the Hawkins et al.’s (1987) marketing productivity index? » Can we apply the index to measure productivity in other industries?
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