Marketing Performance Measurement Ability and Firm Performance

Journal of Marketing, Vol. 71, pp. 79-93, April 2007

Posted: 5 Aug 2009

See all articles by Don O'Sullivan

Don O'Sullivan

University of Melbourne - Melbourne Business School

Andrew Abela

affiliation not provided to SSRN

Date Written: April 2007

Abstract

Marketing practitioners are under increasing pressure to demonstrate their contribution to firm performance. It has been widely argued that an inability to account for marketing’s contribution has undermined its standing within the firm.To respond to this pressure, marketers are investing in the development of performance measurement abilities, but to date, there have been no empirical studies of whether the ability to measure marketing performance has any actual effect on either firm performance or marketing’s stature. In this study of senior marketing managers in high-technology firms, the authors examine the effect of ability to measure marketing performance on firm performance, using both primary data collected from senior marketers and secondary data on firm profitability and stock returns. They also explore the effect of ability to measure marketing on marketing’s stature within the firm, which is operationalized as chief executive officer satisfaction with marketing. The empirical results indicate that the ability to measure marketing performance has a significant impact on firm performance, profitability, stock returns, and marketing’s stature within the firm.

Keywords: marketing metrics

Suggested Citation

O'Sullivan, Don and Abela, Andrew, Marketing Performance Measurement Ability and Firm Performance (April 2007). Journal of Marketing, Vol. 71, pp. 79-93, April 2007, Available at SSRN: https://ssrn.com/abstract=1442930

Don O'Sullivan (Contact Author)

University of Melbourne - Melbourne Business School ( email )

200 Leicester Street
Carlton, Victoria 3053 3186
Australia

Andrew Abela

affiliation not provided to SSRN ( email )

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