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Presented by Group 2: Benedict Kevin

The Nature and Measurement of Marketing Productivity in Consumer Durables Industries: A Firm Level Analysis. Presented by Group 2: Benedict Kevin Hoang Vu

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Presented by Group 2: Benedict Kevin

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  1. The Nature and Measurement of Marketing Productivity in Consumer Durables Industries: A Firm Level Analysis Presented by Group 2: Benedict Kevin Hoang Vu Roel Molina Yang Yang

  2. 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 About the Authors

  3. Positive: Initial research into measuring marketing productivity. • Negative: Out dated Introduction

  4. 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. The Nature of Marketing Productivity

  5. 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 output

  6. Marketing cost - marketing input. • The nature of data base available => limited the percent of sales measure. • Marketing input= Marketing expenditures/sales Marketing input

  7. 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) Marketing Productivity

  8. 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) Data Base

  9. 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) Variables Influencing Marketing Productivity

  10. Importance of Auxiliary Services to End User (IASE) • Frequency of Product Changes (FPC) • Customization (C)

  11. Focused on businesses that dealt in consumer durables • 135 firms samples • Correlation matrix • Multiple regression method Model Construction

  12. R² is significant • Model is Reasonably stable • Different Industries, different marketing productivity • Supports the overall structure of the model developed for the durables industries. Model Evaluation

  13. PIMS DATA BASE • Communication • Comparison Purposes Limitation & Implications

  14. Old Marketing Principle • Update Marketing Concepts • Marketing Productivity Analysis Further Research

  15. Environment • Competition Other Factors

  16. 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? Discussion

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