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

J. of the Acad. Mark. Sci., DOI 10.1007/s11747-008-0095-z

13 Pages Posted: 12 Feb 2014

See all articles by Dhruv Grewal

Dhruv Grewal

Babson College - Marketing Division

Gopalkrishnan R. Iyer

Florida Atlantic University

Wagner A. Kamakura

Rice University

Anuj Mehrotra

University of Miami

Arun Sharma

University of Miami

Date Written: November 1, 2007

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

Suggested Citation

Grewal, Dhruv and Iyer, Gopalkrishnan R. and Kamakura, Wagner A. and Mehrotra, Anuj and Sharma, Arun, Evaluation of Subsidiary Marketing Performance: Combining Process and Outcome Performance Metrics (November 1, 2007). J. of the Acad. Mark. Sci., DOI 10.1007/s11747-008-0095-z, Available at SSRN: https://ssrn.com/abstract=2392640 or http://dx.doi.org/10.2139/ssrn.2392640

Dhruv Grewal (Contact Author)

Babson College - Marketing Division ( email )

Babson Park, MA 02157
United States

HOME PAGE: http://faculty.babson.edu/dgrewal

Gopalkrishnan R. Iyer

Florida Atlantic University

Boca Raton, FL 33431
United States

Wagner A. Kamakura

Rice University ( email )

6100 South Main Street
P.O. Box 1892
Houston, TX 77005-1892
United States
(713) 348-6307 (Phone)

Anuj Mehrotra

University of Miami ( email )

Coral Gables, FL 33124
United States

Arun Sharma

University of Miami

Coral Gables, FL 33124
United States

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