The Nature and Measurement of Marketing Productivity in Consumer Durables Industries:
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The Nature and Measurement of Marketing Productivity in Consumer Durables Industries: A Firm Level Analysis

Presented by Group 2: Benedict Kevin

Hoang Vu

Roel Molina

Yang Yang

About the authors

  • Del I. Hawkins Consumer Durables Industries:

    Professor of Marketing

    Various marketing Journals & Textbooks

  • Roger J. Best

    Associate Professor of Marketing

    Journals & Textbooks

  • Charles M. Lillis

    Vice President of Strategic Marketing for US WEST Inc.

    Various Journals

    Marketing executive

About the Authors



The nature of marketing p roductivity

The Nature of Marketing Productivity

Marketing output

  • Equate marketing output with the total time, place, form and possession utility

  • What does top management expect the marketing function to deliver? => The combination of relative market share and price position.

  • Marketing output for an individual firm as:

    Marketing Output=(Relative market share) x (Relative Price)

Marketing output

Marketing input

  • Marketing cost - marketing input. possession utility

  • The nature of data base available => limited the percent of sales measure.

  • Marketing input= Marketing expenditures/sales

Marketing input

Marketing productivity

  • Marketing Productivity Formula: possession utility

    Relative Market Share x Relative Price

    Marketing Expenditures/sales

  • Marketing Productivity Score (MPS) – In isolation it has no meaning !

  • Marketing Productivity Index (MPI)

Marketing Productivity

Data base

Data Base

Variables influencing marketing productivity

  • Relative Product Breadth (RPB) possession utility

  • Number of Competitors (NC)

  • Relative Product Quality (RPC)

  • Relative Customer Size Range (RCSR)

  • Served Market Growth (SMG)

  • Number of Immediate Customer (NIC)

  • Purchase Amount Immediate Customers (PAIC)

Variables Influencing Marketing Productivity

Model construction

Model Construction

Model evaluation

  • R² is significant possession utility

  • Model is Reasonably stable

  • Different Industries, different marketing productivity

  • Supports the overall structure of the model developed for the durables industries.

Model Evaluation

Limitation implications

  • PIMS DATA possession utility BASE

  • Communication

  • Comparison Purposes

Limitation & Implications

Further research

Further Research

Other factors

Other Factors


  • What possession utility is marketing productivity?What problems do we face in measuring productivity? How can we avoid them?

  • What are the drawbacks/limitations of the Hawkins et al.’s (1987) marketing productivity index?

  • Can we apply the index to measure productivity in other industries?