Marketing performance assessment systems and the business context

Purpose ‐ This study provides empirical evidence for the contextuality of marketing performance assessment (MPA) systems. It aims to introduce a taxonomical classification of MPA profiles based on the relative emphasis placed on different dimensions of marketing performance in different companies and business contexts. Design/methodology/approach ‐ The data used in this study (n=1,157) were collected using a web-based questionnaire, targeted to top managers in Finnish companies. Two multivariate data analysis techniques were used to address the research questions. First, dimensions of marketing performance underlying the current MPA systems were identified through factor analysis. Second, a taxonomy of different profiles of marketing performance measurement was created by clustering respondents based on the relative emphasis placed on the dimensions and characterizing them vis-á-vis contextual factors. Findings ‐ The study identifies nine broad dimensions of marketing performance that underlie the MPA systems in use and five MPA profiles typical of companies of varying sizes in varying industries, market life cycle stages, and competitive positions associated with varying levels of market orientation and business performance. The findings support the previously conceptual notion of contextuality in MPA and provide empirical evidence for the factors that affect MPA systems in practice. Originality/value ‐ The paper presents the first field study of current MPA systems focusing on combinations of metrics in use. The findings of the study provide empirical support for the contextuality of MPA and form a classification of existing contextual systems suitable for benchmarking purposes. Limited evidence for performance differences between MPA profiles is also provided

Effective forms of market orientation across the business cycle:a longitudinal analysis of business-to-business firms

Macroeconomic developments, such as the business cycle, have a remarkable influence on firms and their performance. In business-to-business (B-to-B) markets characterized by a strong emphasis on long-term customer relationships, market orientation (MO) provides a particularly important safeguard for firms against fluctuating market forces. Using panel data from an economic upturn and downturn, we examine the effectiveness of different forms of MO (i.e., customer orientation, competitor orientation, interfunctional coordination, and their combinations) on firm performance in B-to-B firms. Our findings suggest that the impact of MO increases especially during a downturn, with interfunctional coordination clearly boosting firm performance and, conversely, competitor orientation becoming even detrimental. The findings further indicate that both the role of MO and its most effective forms vary across industry sectors, MO having a particularly strong impact on performance among B-to-B service firms. The findings of our study provide guidelines for executives to better manage performance across the business cycle and tailor their investments in MO more effectively, according to the firm's specific industry sector

Marketing metrics, marketing performance measurement, and marketing control

Marketing performance measurement as a tool for controlling marketing activities has attracted substantial interest among academics and business practitioners. There have been calls for more accountability in marketing, as well as for tools that increase transparency in terms of its intangible value within a firm. Several new metrics as well as new measurement methods have been developed. Indeed, the availability of metrics or tools is no longer a challenge for firms – instead, adopting an appropriate mix of marketing metrics for measuring and communicating marketing performance in each individual firm has become the burning issue. This report brings a novel perspective into the extant discussions on marketing performance measurement and marketing control, stressing the combinatory role of the different types of metrics and forms of control. Furthermore, it emphasizes contextuality in the definition of marketing performance and, accordingly, in its measurement and control. Two types of contextuality are recognized: first, the use of marketing metrics is shown to vary across different types of firms operating in different markets. Second, the appropriate use of metrics is shown to be contingent not only on contextual factors but also other, cultural forms of marketing control being exercised simultaneously. In sum, the findings point to multidimensionality and contextuality in marketing performance measurement, suggesting that the sets of metrics and tools of control should always be tailored to the firm-specific context. For managers, this study provides guidelines for measuring marketing performance in a comprehensive manner, taking the firm-specific characteristics into account. The research is based on large-scale national survey data collected in Finland in 2008 and 2010. Complementing the theoretical contributions, the empirical findings give valuable insights into contemporary practices of marketing performance measurement and control in Finnish firms. On the practical level, therefore, the findings point to avenues for improving marketing accountability and related practices among Finnish firms

Shared analytical capabilities in business networks

This study addresses the development and use of analytical capabilities related to structured data (SD) and unstructured data (UD) in business networks that extend beyond the boundaries of individual firms. It focuses on business-to-business relationships in consumer goods retailing to identify two key groups of external resources firms can leverage to take advantage of shared analytical capabilities within their retail networks: (1) access to data and analytics through partners, and (2) structures supporting data and analytics sharing. The study's findings further extend the existing dyadic typology of data- and analytics-related inter-firm routines from (1) unilateral routines, (2) quasi-unilateral routines, and (3) bilateral routines to two complementary types of routines that involve a variety of partners: (4) multilateral routines and (5) joint multilateral routines. Finally, this study reveals potential barriers that may hinder the development and implementation of shared analytical capabilities.peerReviewe

Do not settle for simple assessment : the effects of marketing metric uses on market-sensing capability

Funding Information: The authors would like to thank the Associate Editor and two anonymous reviewers for their constructive comments and feedback. The authors are also grateful to Professor Eimear Nolan and Professor Stephen Murphy from Trinity College Dublin, as well as Professor Bernard Pierce from Dublin City University, for proofreading this manuscript. This project was supported by the National Nature Science Foundation of China (No. 71831005). Publisher Copyright: © 2023, Emerald Publishing Limited.Purpose: Despite the availability of many metrics and tools for marketing performance measurement, the way in which firms use their marketing metrics remains underexplored. This study aims to address this gap by empirically establishing the differing effects of the diagnostic and interactive uses of marketing metrics on firms’ market-sensing capability, contingent on competitive intensity and focus on market-related metrics. Design/methodology/approach: This study builds on survey data collected from 210 Irish-based firms, complemented by 21 in-depth interviews with business managers. Survey data are analysed using regression analysis. Findings: This study finds that firms using marketing metrics interactively to communicate organizational focus are better able to sense their markets, especially under high competition. The authors observe a positive impact of the interactive use of metrics on market-sensing capability, but a U-shaped impact of their diagnostic use, the magnitudes of which further depend on competitive intensity and firms’ focus on market-related metrics. Research limitations/implications: This study provides a nuanced view of marketing performance measurement (MPM) practices within firms, particularly focussing on diagnostic versus interactive uses of marketing metrics. It also sheds further light on how two diverse uses of marketing metrics – diagnostic and interactive uses – influence a firm’s market-sensing capability. Moreover, the identification of boundary conditions also contributes to the discussion of contextuality in MPM, highlighting the importance of aligning a firm’s uses of marketing metrics with its business environment. Practical implications: This study provides novel insights into how diverse uses of marketing metrics may benefit firms. The differing effects of diagnostic and interactive uses of marketing metrics on market sensing highlight a primary need for developing the latter and for using the former only with caution. It establishes that all firms would equally benefit from an interactive use of marketing metrics that is pivotal to improving their ability to anticipate, detect and sense market changes. Originality/value: This study provides novel understanding of the role of marketing metric uses in firms’ market-sensing capability and contributes to the discussion of contextuality in marketing performance measurement. It highlights the importance of aligning a firm’s use of marketing metrics with its business environment.Peer reviewe

Insights from Fortune 500 reporting

Building on an in-depth content analysis of letters to shareholders in the annual reports of 54 Fortune 500 firms, this study examines the types of marketing information currently being highlighted to stakeholders external to the firm. The study identifies seven types of marketing assets: customer relationships, other value network relationships, societal relationships, reputational assets, marketing information, offering-related assets, and market position. The study also reveals three distinct profiles of firms’ reporting. The findings shed empirical light on aspects of marketing that diverse firms perceive as meriting disclosure to external stakeholders, thereby providing insights into how senior management perceives marketing.peerReviewe

Customer orientation as a multidimensional construct: Evidence from the Russian markets

This study revisits one of the most widely used concepts in marketing - customer orientation (CO) - in the context of the Russian emerging market. Analysis of three sets of survey data, combined with insights from in-depth interviews with industry experts, suggest that customer orientation in the Russian market consists of two distinct dimensions: customer-centric strategy and customer service delivery. Both dimensions contribute to firms' ability to serve their customers, adapt to their market environment, and optimize growth and profitability. However, the relative impact of the two dimensions of CO does differ across diverse types of performance outcomes, suggesting that both are critical in a firm's quest to improve its overall business performance.peerReviewe

Market orientation, innovation capability and business performance

Purpose – The paper aims to examine the role of market orientation (MO) and innovation capability in determining business performance during an economic upturn and downturn. Design/methodology/approach – The data comprise two national-level surveys conducted in Finland in 2008, representing an economic boom, and in 2010 when the global economic crisis had hit the Finnish market. Partial least square path analysis is used to test the potential mediating effect of innovation capability on the relationship between MO and business performance during economic boom and bust. Findings – The results show that innovation capability fully mediates the performance effects of a MO during an economic upturn, whereas the mediation is only partial during a downturn. Innovation capability also mediates the relationship between a customer orientation and business performance during an upturn, whereas the mediating effect culminates in a competitor orientation during a downturn. Thus, the role of innovation capability as a mediator between the individual market-orientation components varies along the business cycle. Originality/value – This paper is one of the first studies that empirically examine the impact of the economic cycle on the relationship between strategic marketing concepts, such as MO or innovation capability, and the firm's business performance