Evaluating marketing effectiveness

Lynette Ryals and Sam Dias

The authors argue that quantifying return on investment from brand development is a key issue. They believe that traditional methods of estimating incremental sales attributable to marketing expenditure under-estimates brand marketing effectiveness.

Evaluating Marketing Effectiveness

Sam DiasCommetrix andDr Lynette RyalsCranfield School of Management

Marketing accountability and measuring the effectiveness of marketing spend are key problems for marketers. One area coming under scrutiny is spending on brand development. Quantifying return on investment and shareholder value created (or destroyed) from brand investment is a key issue.

Traditionally, practitioners have risen to this challenge by estimating incremental sales attributable to marketing spend. This can be done with econometric modelling and/or, where data permit, with controlled testing. These methods focus on shortterm returns from incremental sales rather than longerterm value creation,...

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