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Evaluation of Subsidiary Marketing Performance: Combining Process and Outcome Performance Metrics

  • Dhruv GrewalEmail author
  • Gopalkrishnan R. Iyer
  • Wagner A. Kamakura
  • Anuj Mehrotra
  • Arun Sharma
Chapter
Part of the International Series in Operations Research & Management Science book series (ISOR, volume 238)

Abstract

Issues in evaluating marketing performance and devising appropriate metrics for measurement have taken center stage in marketing thought and practice in recent years. We propose an empirical model that enables a multinational enterprise (MNE) to assess the marketing performance of its subsidiaries, taking into explicit consideration the fact that tactical actions by subsidiaries contribute to the creation of assets that can be harnessed for marketing outcomes. Thus, our model captures the asset creation abilities of marketing expenditures and also takes in to account the environmental differences of the context in which each MNE subsidiary operates. We evaluate comparative, overall, and process-level (creation of market assets and market yield) marketing performance in the context of multi-country operations. This simultaneous examination of marketing process and marketing outcome performance enables a global corporation to gain strategic, operational, and diagnostic insights into the performance of its subsidiaries. Our approach is empirically illustrated with an evaluation of the marketing performance of subsidiaries of a large global corporation.

Keywords

Multinational performance evaluations Marketing metrics Outcome measures Performance measures Standardization 

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Copyright information

© Springer Science+Business Media New York 2016

Authors and Affiliations

  • Dhruv Grewal
    • 1
    Email author
  • Gopalkrishnan R. Iyer
    • 2
  • Wagner A. Kamakura
    • 3
  • Anuj Mehrotra
    • 4
  • Arun Sharma
    • 5
  1. 1.Division of MarketingBabson CollegeBabson ParkUSA
  2. 2.Center for Services MarketingFlorida Atlantic UniversityBoca RatonUSA
  3. 3.Rice UniversityHoustonUSA
  4. 4.Management ScienceUniversity of MiamiMiamiUSA
  5. 5.University of MiamiMiamiUSA

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