THE QUEST FOR MARKETING EFFECTIVENESS & ROI WITH THE EFFICIENCY ANALYSIS PACKAGE

Aspy P. Palia

Abstract


Lacking marketing ROI measures of performance, the Web-based Efficiency Analysis Package enables competing participant teams to improve marketing effectiveness and efficiency.  They assess the underlying reasons for any decrease in the sales-to-advertising ratio for each strategic business unit (SBU) within their SBU portfolio during each decision period.  This marketing decision support package facilitates marketing efficiency analysis at both the company and SBU levels. At the company level, it (a) extracts company sales revenue and advertising by region, and (b) calculates the sales-to-advertising ratio for all competing teams.  At the SBU level, it extracts the price, unit sales, advertising budget, advertising awareness index, and other elements of the marketing mix such as regional sales force size, company-wide salary and commission, and product quality indices from the simulation results.  Competing participant teams use this package to exercise marketing control. They set sales-to-advertising ratio goals, monitor performance, identify deviations, understand the underlying reasons, take corrective action and thereby exercise marketing control.


Keywords


simulations; marketing ROI; decision support systems;

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References


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