Evaluation of subsidiary marketing performance: Combining process and outcome performance metrics

Dhruv Grewal, Gopalkrishnan R. Iyer, Wagner A. Kamakura, Anuj Mehrotra, Arun Sharma

Research output: Contribution to journalArticle

12 Scopus citations

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.

Original languageEnglish (US)
Pages (from-to)117-129
Number of pages13
JournalJournal of the Academy of Marketing Science
Volume37
Issue number2
DOIs
StatePublished - Jun 1 2009

Keywords

  • Marketing metrics
  • Multinational performance evaluations
  • Outcome measures
  • Performance measures
  • Standardization

ASJC Scopus subject areas

  • Business and International Management
  • Economics and Econometrics
  • Marketing

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