A paper by marketing scholars from Aalto University appears in Journal of Marketing
The study, titled “What Counts Versus What Can Be Counted: The Complex Interplay of Market Orientation and Marketing Performance Measurement,” examines how firms use marketing performance measurement systems, and how those systems impact company performance.
According to the study, large firms appear to benefit from comprehensive marketing performance measurement. Companies should avoid being single-mindedly focused on improving short-term financial performance. Instead, firms should measure different dimensions of marketing performance, such as customer satisfaction, brand perceptions and position with respect to rivals.
- Not all marketing investments pay off in the short term. In order to avoid the perils of short-term thinking, companies can use non-financial marketing metrics which help evaluate investments and actions that are linked to top- and bottom-line performance in the long run, explains Jukka Luoma, Assistant Professor at Aalto University School of Business.
On the other hand, small companies “may benefit from measuring marketing performance only selectively or by focusing on particular dimensions of marketing performance,” the study reports. Coordination is easier in a small company, so there is less need for formal performance measurement. Furthermore, excessive focus on performance measurement may divert resources away from actually serving customers, the authors say.
The team behind the study is Johanna Frösén (St. Peterburg University), Jukka Luoma (Aalto University), Matti Jaakkola (University of Southampton), Henrikki Tikkanen (Aalto University and Stockholm University) and Jaakko Aspara (Hanken School of Economics).
The study can be found here: http://dx.doi.org/10.1509/jm.15.0153
More information:
Jukka Luoma
Assistant Professor
Aalto University School of Business
Henrikki Tikkanen
Professor
Aalto University School of Business
- Published:
- Updated:
Read more news
"Bring your child to work day" 2024 at the Department of Applied Physics
Find out about a fun morning spent making ice cream for children hosted by the Department of Applied Physics
New origami packaging technology creates sustainable and eye-catching alternatives to conventional packing materials
Origami packaging enables completely new properties for cartonboard, making it an excellent alternative to, for example, plastic and expanded polystyrene in packaging. The aesthetics of the material have also garnered interest from designers.
Quantum physics professor searches for exotic qubit alternatives with new European funding
Aalto University physics professor Jose Lado will use this funding to engineer a new type of topological quantum material that could have applications for quantum bit, or “qubit,” development for noise-resilient topological quantum computation.