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.

Submitted by Silvana Teresinha Dornelles Studzinski (sstudzinski) on 2016-06-29T13:37:41Z No. of bitstreams: 1 Bruna Rorato_.pdf: 951524 bytes, checksum: 8291c1accc5a03acfbf484a81fdf865a (MD5) / Made available in DSpace on 2016-06-29T13:37:41Z (GMT). No. of bitstreams: 1 Bruna Rorato_.pdf: 951524 bytes, checksum: 8291c1accc5a03acfbf484a81fdf865a (MD5) Previous issue date: 2016-03-31 / UNISINOS - Universidade do Vale do Rio dos Sinos / Saber conduzir a base de clientes de maneira a tornar eficiente o investimento em marketing é um fator importante no processo estratégico das empresas hoje em dia. As empresas podem obter diversos ganhos ao adotar um modelo de gestão baseado na métrica do valor do cliente, tanto em fatores econômicos quanto em fatores que abordam o retorno do investimento em marketing. O objetivo geral deste estudo é identificar nas empresas pesquisadas os principais fatores que limitam a utilização da métrica valor do cliente nos processos estratégicos. O estudo buscou avaliar por meio da revisão bibliográfica e empresas pesquisadas como a métrica do valor do cliente está inserida no dia a dia das companhias analisadas, quais são os indicadores presentes nos processos e como os setores financeiro e marketing se relacionam quando o assunto em questão é “cliente”. Os temas valor do cliente (CE) e valor do cliente ao longo da vida (CLV) ainda apresentam diversas lacunas como a relação das estratégias de marketing interligadas com o retorno para a empresa, a interpretação dos investidores com referência as métricas de marketing e a real eficiência das estratégias de marketing. A análise sobre os fatores limitadores da utilização da métrica do valor cliente, bem como os indicadores utilizados pelas organizações, foi embasada através da coleta de dados qualitativa por meio de entrevistas, realizadas em três empresas pré selecionadas, com a alta gerência comercial, financeira e de marketing de cada, totalizando nove entrevistas e uma entrevista de apoio com um consultor financeiro especializado em valor de empresas. Como principais resultados da pesquisa aponta-se: falta de foco no valor do cliente na empresa, orientação estratégica somente no incremento de receita por meio de novos clientes, cliente visto como ativo intangível no processo estratégico e falta de conhecimento das métricas de marketing. Dentre estes aspectos, destacam-se os fatores limitadores decorrentes destas causas: o fator tecnológico, o fator cultural e o fator comunicação eficiente entre as áreas. / Knowing how to conduct customer base in order to make efficient marketing investment is an important factor in the strategic process of the companies today. Thecompanies can get many gains by adopting a management model based on metrics of customer equity, both on economic factors as factors that address the return on marketing investment. The aim of this study is to identify the companies surveyed the main factors that limit the use of measuring customers equity in strategic processes. The study evaluated through literature review and companies surveyed as the metric of customer equity is included on the day-to-day of the analyzed companies, which are the indicators present in the process and how the financial sectors and marketing relate when the subject matter is "customer". The Customer Equity issues (CE) and Customer Lifetime Value (CLV) still have several shortcomings such as relationship marketing strategies linked with the return to the company, the interpretation of investors with reference marketing metrics and the actual efficiency of strategies marketing. The analysis of the limiting factors of the use of customer equity metrics and indicators used by organizations, was based by qualitative data collection through interviews conducted in three pre selected companies with high commercial, financial and marketing management, totaling nine interviews and a supporting interview with an expert financial advisor in value companies. The main results on this research is pointed out: lack of focus on customer equity in the company, strategic guidance only on revenue growth through new customers, customer viewed as an intangible asset in the strategic process and lack of knowledge of marketing metrics. Among these aspects, it highlights the technological and cultural factor and efficient communication between the areas.

With the value of initiating contact or a relationship being intangible, marketing departments are currently struggling to prove their contribution to the business. Evaluating the efficiency of B2B marketing investments has been proven hard, and the prerequisites for doing so are many. However, the enabling of measuring marketing efficiency would provide companies with a tool for prioritizing between marketing investments and thus optimize budget allocation and business value. This study aims to examine the underlying technical and organizational difficulties of evaluating the efficiency of marketing investments, as well as contributing with guidance on how to overcome them. By combining an exploratory theoretical investigation and a case study that followed a descriptive approach, this study covers the investigated phenomena in both a general and a specific context. The technical difficulties of evaluating marketing efficiency that were found include contamination of data due to unstructured gathering of field data, unaligned definitions, and a high level of individual judgment when categorizing data. Findings on organizational difficulties concentrate on the Sales-Marketing Interface (SMI) and include missing feedback loop between the two departments, unaligned goals and rewards, unstructured handover phase, and broken information streams. Finally, the authors suggest a number of measures that can be taken in order to solve the stated difficulties and excel in SMI and marketing intelligence maturity towards a state where marketing efficiency can be evaluated. By comparing theory to empirical findings, a connection between theory and practice is established, which contributes to bridging the theory-practice gap that exits in B2B marketing research. In specific, this study contributes to science by presenting a number of measures that can help organizations enable the assessment of marketing efficiency. Yet, further research on the effect marketing has on customer lifetime is necessary. / Eftersom värdet av att initiera en kontakt eller en relation är ogripbar behöver dagens marknadsavdelningar kämpa för att bevisa sitt bidrag till företagets affär. Att utvärdera den inre effektiviteten i investeringar i industriell marknadsföring är bevisat svårt och de nödvändiga förutsättningarna är många. Dock skulle möjliggörandet av mätning av marknadsföringseffektivitet kunna ge företag ett verktyg för att prioritera mellan olika investeringar i marknadsföring och därmed också optimera budgetallokering och affärsvärde.  Denna studie syftar till att undersöka de underliggande tekniska och organisatoriska svårigheterna med att utvärdera effektiviteten i marknadsföringsinvesteringar, liksom även att bidra med guiding för hur dessa ska överkommas. Genom att kombinera en explorativ teoretisk undersökning och en fallstudie genomförd med ett deskriptivt tillvägagångssätt studeras det undersökta fenomenet i både en generell och en specifik kontext. Resultatet visar att de tekniska svårigheterna med att utvärdera marknadsföringseffektivitet inkluderar nedsmutsning av data till följd av ostrukturerad insamling av fältdata, ickeöverensstämmande definitioner och en hög nivå av individuell bedömning då data kategoriseras. Det organisatoriska svårigheterna är koncentrerade till gränssnittet mellan sälj och marknadsföring och inkluderar bristande feedback-loop mellan det två avdelningarna, icke-överensstämmande mål och belöningar, ostrukturerad överlämningsfas och brutna informationsströmmar. Slutligen föreslår författarna ett antal åtgärder som kan vidtas för att lösa dessa svårigheter och därmed excellera gränssnittet mellan sälj och marknadsföring samt mognadsgraden av intelligent marknadsföring till en studie där marknadsföringseffektivitet kan utvärderas.  Genom att jämföra teori med empiriska resultat sammankopplas teori med praktik, vilket bidrar till att överbygga det forskningsgap mellan teori och praktik som existerar i forskningen om indutriell marknadsföring. Mer specifikt så bidrar denna studie till vetenskaper genom att presentera ett antal åtgärder som kan möjliggöra bedömning av marknadsföringseffektiviteten. Ändock finns ett behov av vidare forskning vad gäller effekten marknadsföring har på kundens livslängd.