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

Background: It is proven difficult to provide evidence for the financial benefit of marketing operations within firms and marketing is the last organizational function to achieve an adopted quantitative method to track and measure its effectiveness. As a result, demands for marketing to provide accountability for its inputs toward firm performance have increased over the past decade and there are an increasing amount of methods looking to measure its contributions.   Problem: Small businesses need to invest financial resources in marketing in order to increase their market share and sales. However, marketing’s value to the firm as an organizational function often goes undervalued. Additionally, small businesses commonly lack the marketing experience and knowledge required in order to make more profitable marketing investment decisions.   Purpose: The purpose of the thesis is to research how much marketing investment influences the profit/sales effectiveness of small business within the clothing sector in Sweden.   Method: The study was conducted using a quantitative research method, through the analysis of 23 small businesses in clothes retailing industry located in Sweden. The data was collected through the firms’ annual reports and telephone surveys with firm managers. This information was processed using a relevant marketing effectiveness model in combination with regression and correlation analyses. Empirical findings were analyzed using theories relevant to pursuing the purpose.   Conclusion: Based on the findings the study concludes that there is evidence for a positive relationship between a firm's marketing investments and sales, as well as between the effectiveness of its marketing activities and it’s incremental revenue. This provides evidence for marketing investments contributing to the economic effectiveness of the firm and that the firms marketing effectiveness contributes to overall financial growth

Darbe yra analizuojamas marketingo veiklos efektyvumo vertinimas. Dėl sparčiai besikeičiančios aplinkos ir didėjančios konkurencijos įmonėms yra ypač svarbu vykdyti naudingas ir efektyvias strategijas, didinti visos įmonės vertę, tačiau didžiausia problema yra atsirinkti, ką vertinti ir kaip vertinti. Darbo tikslas - remiantis moksliniais marketingo veiklos efektyvumo vertinimo šaltiniais, atvejo analizės gautais rezultatais, pateikti bendrą marketingo veiklos efektyvumo vertinimo ir atskirų marketingo kampanijų efektyvumo vertinimo modelius. Magistrinio baigiamąjį darbą sudaro trys pagrindinės dalys. Teorinėje, pirmojoje, darbo dalyje yra analizuojami, aptariami, palyginami skirtingų autorių požiūriai į marketingo veiklos efektyvumo vertinimą bei, pagal mokslininkų atliktus tyrimus, pateikiami būdai ir rodikliai marketingo veiklos efektyvumui įvertinti. Analitinėje baigiamojo darbo dalyje atvejo analizės ir ekspertinio interviu metodais yra analizuojamas Lietuvoje vykstančio rinkodaros pasiekimų konkurso „Password 2011” marketingo kampanijų efektyvumo vertinimas. Trečiojoje dalyje yra pateikiami marketingo veiklos efektyvumo vertinimo modeliai, kurie padėtų rezultatyviai įvertinti atskiras marketingo veiklas. / The paper analyzes the marketing performance evaluation. As environment is rapidly changing and competitiveness of enterprises is increasing, it is very important to develop useful and effective strategies to increase the total value of the company, but the biggest problem is to select what to measure and how to measure. The objective of this paper is to present general model of marketing activities effectiveness measurement and models of individual marketing campaigns effectiveness assessment based on scientific resources of marketing effectiveness assessment and results of case analysis. The theoretical, first, part of the work introduces analysis, comparison of different authors approaches to the marketing activities performance evaluation by finding out methods and indicators, which assess the effectiveness of marketing activities. The analytical part is based on case study and interview of expert which analyzes marketing campaign efficiency of Lithuanian’s marketing competition "Password 2011". The third part is intended for the marketing performance evaluation models, which show the most useful stages to evaluate main marketing activities.

The national tourism organizations keep investing in their marketing activities and campaigns. In recent years the pressure on efficiency and return on investment and the technology development changed the existing modus operandi o the national tourism offices . Participants modern tourism are on the one hand, increasingly able to organize their trips by themselves , place higher demands on information and booking options online. Modern clients are on one hand able to organize their trips by themselves, demend more accurate information and online booking options. On the other hand, there were opened up new markets with huge economic potential but almost zero brand awareness and high dependence on the distribution channels. "Country branding " has become one of the important tools of competitiveness of national economies. This applies to building a competitive position in the export of goods and services. As most budgets for destination marketing are financed from public resources, the financial and debt crisis in the Eurozone decreased marketing expenses in building national brands. This raises an obvious interest in this phenomenon , both from researchers , economic journalists, and of course, politicians. The doctoral dissertation responds to the current developments and includes a comparison of selected activities of the national tourism organizations in the European Union , which naturally connects theoretical framework of the doctoral program, international trade and the focus of the Department of Tourism. The main aim of the doctoral thesis is to assess the effectiveness of selected instruments that support the tourism development and to draw the implications for management sector at the level of the Czech Republic. The assessment is based on based on the international comparative studies and analysis of empirical statistical data. In this sense, they were defined objectives. 1) To develop a comprehensive comparative profile of tourism policies in selected European countries. 2) To analyze the importance of brands of countries and cities in the context of competitiveness of tourism destinations. 3) To evaluate the impact of the national tourism organizations in terms of arrivals and brand value.

Submitted by Cristiane Oliveira (cristiane.oliveira@fgv.br) on 2011-06-03T15:32:55Z No. of bitstreams: 1 66080100256.pdf: 1176091 bytes, checksum: fcc0a2692cf5fd1eb1a05eb610c446c2 (MD5) / Approved for entry into archive by Vera Lúcia Mourão(vera.mourao@fgv.br) on 2011-06-03T16:43:34Z (GMT) No. of bitstreams: 1 66080100256.pdf: 1176091 bytes, checksum: fcc0a2692cf5fd1eb1a05eb610c446c2 (MD5) / Approved for entry into archive by Vera Lúcia Mourão(vera.mourao@fgv.br) on 2011-06-03T16:57:44Z (GMT) No. of bitstreams: 1 66080100256.pdf: 1176091 bytes, checksum: fcc0a2692cf5fd1eb1a05eb610c446c2 (MD5) / Made available in DSpace on 2011-06-03T17:04:48Z (GMT). No. of bitstreams: 1 66080100256.pdf: 1176091 bytes, checksum: fcc0a2692cf5fd1eb1a05eb610c446c2 (MD5) Previous issue date: 2011-01-14 / After the deep financial crisis in 2008, there has been an increasing questioning of the Firm’s objectives and its relationship with the financial markets. There is a paradox between the current practice of maximizing financial short-term performance of organizations, demanded by financial agents to corporate executives, and the financial concept of valuation of the Firm, which considers Firm value as the present value of discounted future cash flows. Therefore, according to the maximizing value proposition the Firm's objective is to increase its long-term total value (Jensen, 2000). The primary function of marketing strategies, innovations (R&D investments) included, is to generate both growth and consistent long-term business, i.e. the expansion of intangible assets to generate tangible assets. Based on the conceptual framework of Market-based Assets (Srivastava, Shervani and Fahey 1998), this paper seeks to contribute to the subject by proposing simple metrics, the adjusted performance indexes of retail sector, the Customer Average Ticket (TMC) and the Customer Average Ticket Earnings (LTMC). These metrics could relate investments in marketing to the value of the Firm (shareholder value) through the variation in quality of the company's customer base, which is the source of revenue generation and part of the intangible assets. For empirical tests, this study used data from the following publicly companies listed in Bovespa (São Paulo Stock Exchange): Sadia and Perdigao, belonging to the food processing sector, in the period of 1999 to 2010, and also the air line companies TAM and Gol in the period of 2004 to 2010. The tests were inconclusive, due to certain data limitations, not allowing proving or ruling out the tested hypotheses. But the logical line and simplicity of the method should be explored by future studies. If the method could be confirmed and proven, it would provide all agents (marketing executives, CEOs and CFOs, market analysts and investors) with a simple and objective tool for analysis and way of communication about the value creation of Marketbased Assets (intangible assets) that impact the total Firm value. / Após a profunda crise financeira de 2008, houve um aumento do questionamento sobre os objetivos da Firma e a sua relação com os mercados financeiros. Existe um paradoxo entre a prática corrente de maximização da performance financeira de curto-prazo da organização, demandada pelos agentes financeiros aos executivos das empresas, e o próprio conceito financeiro de valoração da Firma., que considera como valor da Firma o valor presente dos fluxos de caixa futuros descontados. Portanto, segundo a proposição de maximização de valor, o objetivo da Firma é aumentar o seu valor total de longo prazo (JENSEN, 2000). É função primordial das estratégias de marketing, aí incluídos os investimentos em inovação (P&D), o objetivo de gerar crescimento e consistência de longo prazo do negócio, isto é, a ampliação dos ativos intangíveis para gerar ativos tangíveis. Norteado pela estrutura conceitual de Ativos base Mercado (SRIVASTAVA; SHERVANI; FAHEY, 1998), o presente trabalho busca contribuir para o tema, com uma proposição de métricas simples, adaptadas de índices de desempenho do setor varejo, o Ticket Médio Cliente (TMC) e o Lucro Ticket Médio Cliente (LTMC), que possam relacionar os investimentos em marketing e o valor da Firma através da variação da qualidade da base de clientes da empresa, que é a fonte de geração de receitas e parte dos ativos intangíveis. O estudo utilizou para os testes empíricos dados das seguintes empresas, com ações negociadas na Bovespa: Sadia e Perdigão, pertencentes ao setor de alimentos processados, de 1999 a 2010, e também as companhias aéreas TAM e Gol no período de 2004 a 2010. Os testes não foram conclusivos, devido a determinadas limitações dos dados, não permitindo provar ou descartar as hipóteses testadas. Porém a linha lógica e a simplicidade do método deveriam ser exploradas por estudos futuros, pois se confirmado e provado, forneceria uma ferramenta simples e objetiva de análise e comunicação por parte de todos os agentes envolvidos (executivos de marketing, diretores financeiros e presidentes, analistas de mercado e investidores), com relação à criação de valor de Ativos base Mercado (ativos intangíveis) que impactam o valor da Firma.

Made available in DSpace on 2010-04-20T20:47:57Z (GMT). No. of bitstreams: 3 86570.pdf.jpg: 22231 bytes, checksum: 34de2608e8e6e4e2dae8a7f653d5cd30 (MD5) 86570.pdf.txt: 243371 bytes, checksum: c5f0fa80eb08a9e86c0a1326c93f043a (MD5) 86570.pdf: 1102343 bytes, checksum: f361654fc4f109360f6de9a92dbc70e9 (MD5) Previous issue date: 2006-03-06T00:00:00Z / Este estudo no setor de telefonia celular adapta o modelo de investimento de marketing de Rust, Lemon & Zeithaml (2004) fornecendo um método de avaliação de investimento em áreas estratégicas de marketing (value, brand e relationship equity). Aplicado às operadoras de telefonia celular do estado de São Paulo (Vivo, Claro e TIM), o modelo permite calcular a probabilidade de um cliente mudar da operadora atual para uma concorrente, e verificar se a contribuição marginal advinda de uma ação mercadológica ultrapassa ou não seu custo de capital. Finalmente, através da aplicação do modelo obtém-se uma estimativa do customer equity atual das três operadoras de telefonia celular estudadas. / This study proposes an adaptation to the mobile telephone sector of the Rust Lemon & Zeithaml (2004) model of marketing investment. The model provides a method for the evaluation of investments in strategic marketing areas (value, brand and relationship equity). Applied to São Paulo State cellular telephone companies (Vivo, Claro and TIM), the model allows the estimation of a customer probability of change from the present operator to a competitor; and the assessment of a marketing initiative contribution, verifying if it exceeds its cost of capital. Finally, through the application of model, an estimate of customer equity is calculated for the three studied cellular telephone operators.