Assessing Efficiency and Effectiveness in Marketing: Applications of Data Envelopment Analysis—Prelude to Chapters 15 and 16

Chapter
First Online:
Part of the International Series in Operations Research & Management Science book series (ISOR, volume 238)

Abstract

Academic theory and marketing practice have both grappled with the problem of assessing marketing performance, either in terms of effectiveness of marketing strategies and/or the efficiency of marketing operations. Data Envelopment Analysis (DEA) is an important tool for the assessment of marketing efficiency, or the relation between marketing inputs and outputs, as well as marketing effectiveness, or the impact of marketing actions on specific performance results. The following pages provide an introduction to various challenges in the assessment of marketing performance followed by two articles that demonstrate the application of DEA in two different contexts. In the retail context, DEA is used to highlight the importance of considering regional factors when evaluating the efficiency of individual stores within the same retail chain. In the global marketing context, DEA is used to address the fact that most marketing actions involve the creation of marketing assets that in turn impact performance.

Keywords

DEA in marketing Marketing performance assessment Retail store efficiency Subsidiary performance evaluation 
This is a preview of subscription content, log in to check access.

References

  1. Berger PD, Nasr NI (1998) Customer lifetime value: marketing models and applications. J Interact Mar 12:17–30CrossRefGoogle Scholar
  2. Bharadwaj SG, Rajan Varadajaran P, Fahy J (1993) Sustainable competitive advantage in service industries: a conceptual model and research propositions. J Mark 57:83–99CrossRefGoogle Scholar
  3. Blattberg RC, Deighton J (1996) Manage marketing by the customer equity test. Harv Bus Rev 74:136–144Google Scholar
  4. Bonoma TV, Clark BH (1988) Marketing performance assessment. Harvard Business School Press, BostonGoogle Scholar
  5. Conant JS, Mokwa MP, Varadarajan PR (1990) Strategic types, distinctive marketing competencies and organizational performance: a multiple measures‐based study. Strat Manage J 11(5):365–383CrossRefGoogle Scholar
  6. Day G (1994) The capabilities of market-driven organizations. J Mark 58:37–52CrossRefGoogle Scholar
  7. Day G, Fahey L (1988) Valuing market strategies. J Mark 52:45–57CrossRefGoogle Scholar
  8. Dunn MG, Norburn D, Birley S (1994) The impact of organizational values, goals, and climate on marketing effectiveness. J Bus Res 30(2):131–141CrossRefGoogle Scholar
  9. Fornell C, Mithas S, Morgeson F, Krishnan MS (2006) Customer satisfaction and stock prices: high returns, Low risk. J Mark 70:3–14CrossRefGoogle Scholar
  10. Gauri DK (2013) Benchmarking retail productivity considering retail pricing and format strategy. J Retail 89(1):1–14CrossRefGoogle Scholar
  11. Geysens I, Gielens K, Dekimpe MG (2002) The market valuation of Internet channel additions. J Mark 66(2):102–119CrossRefGoogle Scholar
  12. Grewal D, Levy M, Mehrotra A, Sharma A (1999) Planning merchandising decisions to account for regional and product assortment differences. J Retail 75(3):405–424CrossRefGoogle Scholar
  13. Grewal D, Iyer GR, Kamakura W, Mehrotra A, Sharma A (2009) Evaluation of subsidiary marketing performance: combining process and outcome performance metrics. J Acad Mark Sci 37(2):117–129CrossRefGoogle Scholar
  14. Gummeson E (1999) Total relationship marketing—rethinking marketing management: from 4P’s to 30 R’s. Butterworth-Heineman, OxfordGoogle Scholar
  15. Gupta S, Lehmann DR, Stuart JA (2004) Valuing customers. J Mark Res 41(1):7–18CrossRefGoogle Scholar
  16. Joshi AM, Hanssens DM (2009) Movie advertising and the stock market valuation of studios: a case of ‘great expectations’? Mark Sci 28(2):239–250CrossRefGoogle Scholar
  17. Keller KL (1993) Conceptualizing, measuring, and managing customer-based brand equity. J Mark 57:1–22CrossRefGoogle Scholar
  18. Kumar V, Shah D (2009) Expanding the role of marketing: from customer equity to market capitalization. J Mark 73:119–136CrossRefGoogle Scholar
  19. Laréché J-C, Srinivasan V (1982) STRATPORT: a model for the evaluation and formulation of business portfolio strategies. Manage Sci 28(9):979–1001CrossRefGoogle Scholar
  20. Luo Y (1999) Entry and cooperative strategies in international business expansion. Quorum Books, WestportGoogle Scholar
  21. Madden TJ, Fehle F, Fournier S (2006) Brands matter: an empirical demonstration of the creation of shareholder value through branding. J Acad Mark Sci 34(2):224–235CrossRefGoogle Scholar
  22. McKee DO, Rajan Varadarajan P, Pride WM (1989) Strategic adaptability and firm performance: a market-contingent perspective. J Mark 53:21–35CrossRefGoogle Scholar
  23. Moorman C, Rust RT (1999) The role of marketing. J Mark 63(Special Issue):180–197CrossRefGoogle Scholar
  24. Morgan NA, Clark BH, Gooner R (2002) Marketing productivity, marketing audits, and systems for marketing performance assessment: integrating multiple perspectives. J Bus Res 55(5):363–375CrossRefGoogle Scholar
  25. Pauwels KH, Silva-Risso JM, Srinivasan S, Hanssens DM (2004) New products, sales promotions and firm value, with application to the automobile industry. J Mark 68:142–156CrossRefGoogle Scholar
  26. Rust RT, Moorman C, Dickson PR (2002) Getting return on quality: revenue expansion, cost reduction, or both. J Mark 66:7–24CrossRefGoogle Scholar
  27. Rust RT, Moorman C, Dickson PR, Lemon KN, Zeithaml VA (2004) Return on marketing: using customer equity to focus marketing strategy. J Mark 68:109–127CrossRefGoogle Scholar
  28. Sheth JN, Sisodia RS (2002) Marketing productivity issues and analysis. J Bus Res 55(5):349–362CrossRefGoogle Scholar
  29. Slater SF, Narver JC (1993) Product-market strategy and performance: an analysis of the miles and snow strategic types. Eur J Mark 27(10):33–51CrossRefGoogle Scholar
  30. Srinivasan S, Hanssens DM (2009) Marketing and firm value: metrics, methods, findings, and future directions. J Mark Res 46:293–312CrossRefGoogle Scholar
  31. Srinivasan S, Pauwels K, Silva-Risso J, Hanssens DM (2009) Product innovations, advertising, and stock returns. J Mark 73(1):24–43CrossRefGoogle Scholar
  32. Srivastava RK, Shervani TA, Fahey L (1998) Market-based assets and shareholder value: a framework for analysis. J Mark 62:2–18CrossRefGoogle Scholar
  33. Srivastava RK, Shervani TA, Fahey L (1999) Marketing, business processes, and shareholder value: an organizationally embedded view of marketing activities and the discipline of marketing. J Mark 63(Special Issue):168–179CrossRefGoogle Scholar
  34. Tellis GJ, Johnson J (2007) The value of quality. Mark Sci 26(6):758–773CrossRefGoogle Scholar
  35. Thomas MJ (1984) The meaning of marketing productivity analysis. Mark Intell Plan 2(2):13–28CrossRefGoogle Scholar
  36. Vorhies DW, Morgan NA (2003) A configuration theory assessment of marketing organization Fit with business strategy and its relationship with marketing performance. J Mark 67:100–115CrossRefGoogle Scholar
  37. Walker OC, Ruekert RW (1987) Marketing’s role in the implementation of business strategies: a critical review and conceptual framework. J Mark 51:15–33CrossRefGoogle Scholar
  38. Workman JP, Homburg C, Gruner K (1998) Marketing organization: an integrative framework of dimensions and determinants. J Mark 62:21–41CrossRefGoogle Scholar

Copyright information

© Springer Science+Business Media New York 2016

Authors and Affiliations

  1. 1.Center for Services Marketing and ManagementFlorida Atlantic UniversityBoca RatonUSA
  2. 2.Babson CollegeBabson ParkUSA

Personalised recommendations