- Paper Title: Developing a Marketing Effectiveness Index through linking Marketing Actions to Firm Value
- Department Affiliation: Marketing and Management
- Supervisor's Names:
- Principal: Doctor David Gray
- Associate: Doctor Chris Baumann
This research explores the effectiveness of marketing actions on a firm’s intangible assets and subsequently its financial assets. An index is developed to monitor and track changes in intangible marketing assets, namely brand equity and customer equity in the long term.
OriginalityThe thesis aims to measure the impact of marketing actions on brand building effects and subsequently firm value. It will propose a new methodology for measuring the impact of marketing actions on firm value. Long term marketing actions are tested for their impact on marketing assets such as brand equity and customer equity, ultimately linking marketing assets to firm value.
Secondary data analysis and a case study method are the principle techniques applied in this study. A combination of firm internal data, external databases (e.g. COMPUSTAT), and consumer survey data will be used. In order to explore the dynamics of marketing actions long term, we apply a Dynamic Linear Model (DLM).
This study makes a contribution by controlling two series of variables: first, variables which affect marketing performance in long term such as the marketing mix inertia and seasonality. The second control mechanism relates to variables which affect brand equity measurement such as country characteristics and industry characteristics. In addition this research considers the impact of various long term dynamic factors such as customer response, competitor response (competition) and economic context.
One of the major limitations of this study is data availability to measure the dynamic factors and control variables.
Marketing Actions, Marketing Assets, Long Term, Dynamic Linear Model, Marketing Performance .