hh.sePublikasjoner
Endre søk
RefereraExporteraLink to record
Permanent link

Direct link
Referera
Referensformat
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Annet format
Fler format
Språk
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Annet språk
Fler språk
Utmatningsformat
  • html
  • text
  • asciidoc
  • rtf
Decision makers' use of Return on Marketing Investment metrics in the decision-making process
Högskolan i Halmstad, Akademin för ekonomi, teknik och naturvetenskap.
Högskolan i Halmstad, Akademin för ekonomi, teknik och naturvetenskap.
2018 (engelsk)Independent thesis Basic level (degree of Bachelor), 10 poäng / 15 hpOppgave
Abstract [en]

There is extensive literature written about how to calculate Return on Marketing Investment

(ROMI) and its importance for marketing managers. However, there are not many studies made

on how and when Return on Marketing Investment metrics are used in real life and if and how

it is used to argue the value of a marketing activity. We have in this study with comparative

cases investigated if and how ROMI metrics are used by managers outside the marketing

department in their decision-making process. We based our case selection on how well they

represented "Mad men to Math men" presented in Gilan and Hammarberg (2016)'s book "Get

Digital or Die Trying." Mad men refers to old school "gut feeling" marketing decision making

and "Math men" refers to modern digital marketers with decision making based on numbers

and statistics. This study is made from the decision makers point of view with the purpose to

gain a better understanding of if and how ROMI calculations are used in the decision-making

process of senior management outside of the marketing department. This comparative case

study consists of eight in-depth interviews, four in each company. The interviewees are all

senior management outside of the marketing department. Our findings include that these two

companies work very differently in how they make decisions in marketing investments. In

Company 1 the marketing budget is decided by senior management outside of the marketing

department, and this management may also cut the marketing budget if they see it necessary.

In Company 2 the Segment Managers are responsible for the amount of the budget they would

like to invest in marketing activities, and therefore they have more incentive to calculate the

return of each investment and compare it with the return on other investments available to them.

One of the reasons for the different ways of working can be a result of the different

responsibility structure over the marketing budget. There is also a difference in how the two

companies measure the success of the investment; Company 1 measure success in pure financial

return and Company 2 measure success in increased market shares as well as financial return.

Company 2 are using ROMI metrics to a greater extent than Company 1, who does not use any

ROMI metrics. Marketers can in this study get an idea of how using ROMI metrics can help

argue their case for further investments in marketing or cutting the budget for the marketing

department. With the use of ROMI metrics, marketers can also evaluate which marketing

activities are more efficient and thereby decide if they should continue with these activities or

not. This study also shows that there is still, in some companies, a divide and conflict between

the finance department and the marketing department. By shifting the responsibility of the

marketing budget like in the case of Company 2, the adverse effect of this division on the

marketing investments can be reduced. It can also be beneficial for the company to focus more

on market shares than on sales and numbers. As digital marketing is growing stronger, the

calculations of ROMI will become easier.

Keywords: Return on Marketing Investment (ROMI), decision-making process, senior

management, marketing department, finance department, ROMI metrics, real-life ROMI,

comparative case study, Mad men, Math men

sted, utgiver, år, opplag, sider
2018. , s. 53
Emneord [en]
Return on Marketing Investment
HSV kategori
Identifikatorer
URN: urn:nbn:se:hh:diva-37151OAI: oai:DiVA.org:hh-37151DiVA, id: diva2:1220234
Utdanningsprogram
The International Marketing Programme, 180 credits
Veileder
Tilgjengelig fra: 2018-08-20 Laget: 2018-06-18 Sist oppdatert: 2018-08-20bibliografisk kontrollert

Open Access i DiVA

fulltext(7687 kB)149 nedlastinger
Filinformasjon
Fil FULLTEXT02.pdfFilstørrelse 7687 kBChecksum SHA-512
c8749013dea0af9aa84f33b94f5b5323abeb02cd875ab503fdd5d5435a2e57817a16d84718d765d677ea27ba7e17a102e47db68a0452188dfae05fde04d7bfc4
Type fulltextMimetype application/pdf

Av organisasjonen

Søk utenfor DiVA

GoogleGoogle Scholar
Totalt: 149 nedlastinger
Antall nedlastinger er summen av alle nedlastinger av alle fulltekster. Det kan for eksempel være tidligere versjoner som er ikke lenger tilgjengelige

urn-nbn

Altmetric

urn-nbn
Totalt: 242 treff
RefereraExporteraLink to record
Permanent link

Direct link
Referera
Referensformat
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Annet format
Fler format
Språk
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Annet språk
Fler språk
Utmatningsformat
  • html
  • text
  • asciidoc
  • rtf