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Pro$itability
&
Marketing


a statistical approach
group
3

Louie
Cunanan

Una
Clifford

Viridiana
Castillejos

agenda

overview


★


type
of
study
&
data
used

★


analysis
&
variables
used

★


$indings
&
assessment

★


q&a

★

so

what
did

we
choose?

Marketing
Metrics:


European Management Journal
Status
of
Six
Metrics
in

2004
Five
Countries


Long‐term
Impact
of

Integrated
Marketing
 Review of Marketing Science
Communications
 2004
Program


Marketing
Spending

 University of California, LA


&
The
Volatility
of
 Andersen Business School,
Revenues
&
Cash
Flows
 2009
these


are
what

we


found
out.

Descriptive,
 Telephone interviews with CMOs
Benchmarking
 697 observations from 5 countries
July – August 2002

Explanatory,

Extension
from
 500 adults ages 20-44
previous
model,
 Across 10 locations in the UK
Predictive


99 pharmaceutical brands
Explanatory
&
 marketed by 26 pharma
companies, spanning 4 clinical
Predictive

categories & 4 European
countries
and

statistically

speaking

…

Market Share / Perceived
product or service quality /
Principal
Component
 Customer Loyalty / Customer
Analysis
with
Varimax
 Profitability / Relative Price /
Rotation
 Actual or potential lifetime
value / Country where based

Long-term Profit / degree of


Regression
Analysis
 IMC synergy / Total Media
Budget / Competition/
Uncertainty

Revenue & Cash Flows /


Market
Response
Model

 Market Expenditures /
Competitive Market
Volatility
Model

Expenditures / Unit Sales
take‐aways

for
you

&

our
much

awaited

thoughts.

Adequate mention of past
1+
out
of
6
metrics
now
 literature. Reader-friendly.
part
of
management
 Reasonable sample.
reporting

Germany
vs.
Japan
Case
 Industry split is ignored.

Overriding theory. Limitations


were clear.
Synergy
&
Budget

Relationships
in
 Can model be validated given
Uncertain
Markets
 limited data? Applicability?

Unique study. Attempt to


explain models used.
Trade‐off
Matrix
for

Managers
 Very predictive. Limited
samples. Applicability of
research?
any


questions?


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