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The Nature of Marketing Productivity-Hawkins - Faculty


									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
» 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
» 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
» 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
» 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
» Frequency of Product Changes (FPC)
» Customization (C)
» Focused on businesses that dealt in consumer
» 135 firms samples
» Correlation matrix
» Multiple regression method
» R² is significant
» Model is Reasonably stable
» Different Industries, different marketing
» Supports the overall structure of the
  model developed for the durables
» 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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