Judging marketing mix effectiveness

Abstract

PurposeThe purpose of this paper is to review the differing structural constraints between corporates and small to medium‐sized enterprises (SMEs) in the area of measuring marketing effectiveness and, using the premise that an imperfect measure is better than none, demonstrate a practitioner‐developed tool for “judging” marketing mix effectiveness through a case study from the automotive sector.Design/methodology/approachThe paper uses literature review, SME practitioner experience and a case study from the global automotive sector.FindingsThere is no single “magic bullet” metric for measuring marketing effectiveness. Whilst multiple metrics might therefore be used, SMEs’ variances from corporates can render this approach “too difficult”. This can lead to SMEs managing their marketing without adequate planning/control, relying instead on anecdotes/myths. The case‐examined practitioner tool assumes an incomplete measurement system is better than none and that the most pragmatic start‐point is the marketing mix itself. It is demonstrated to deliver positive outcomes in a number of areas.Research limitations/implicationsOwing to the volume of research data on measuring marketing effectiveness, the authors have focused on those metrics that they have observed more commonly in use in UK businesses. The research into the practitioner tool is based on its observed outcomes with 28 UK SMEs since 2005 and highlights a single implementation with an automotive sector firm.Practical implicationsThe practitioner tool offers a pragmatic starting‐point in an SME environment where there might otherwise be no rational measurement of marketing effectiveness (in whole or in part) at all.Originality/valueThe paper's contribution is to question the applicability of current academic thought in the context of certain business situations, whilst offering an illustrative example of a pragmatic solution for SME practitioners. It is posited that by making use of this solution, SME owner/managers would be better equipped to understand the strategic linkages between marketing mix elements, customer groups and the outcomes of past marketing actions, leading to a more considered approach to future marketing decisions in line with business objectives.