Demonstrating the Value of Marketing

Dominique M. Hanssens & Koen H. Pauwels
Article Snapshot
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Key Takeaways

​Marketing analytics can only improve decisions when it integrates value perspectives and communicates in the style of the human decision maker.

Research should consider the scope and the objectives of marketing within an organization and balance the risk and returns of change.

Academics should aim to integrate research methods for maximum impact in driving marketing decision making

Article Snapshot​s: Executive Summaries from the AMA/MSI Special Issue of Journal of Marketing

The value of marketing to the organization can and should be defined, assessed, and communicated. This article identifies gaps in marketing’s knowledge base to set the stage for further research and enhanced practice in demonstrating marketing’s value.




​Research

Demonstrating the value of marketing is very important to create impact for the field. Because much research focuses narrowly on a single performance metric and method, major knowledge gaps include (1) how performance metrics relate to marketing’s scope and objectives within an organization and (2) how research insights should be communicated throughout the organization to enable decision makers. Addressing these gaps in (a) assessing and (b) communicating the value of marketing will both enrich academic research and improve marketing practice.

Method

We review past literature and draw on our own experience in helping marketing decision makers in large and small organizations over three continents.


“Demonstrating the Value of Marketing,” by Dominique M. Hanssens & Koen H. Pauwels 

 

Findings

Practice-inspired research can help balance short-term and long-term, effectiveness and efficiency, online and offline, hard and soft metrics, return and risk, model and manager, learning from the past and experimenting for the future.​

Implications

Marketing affects all of us, and improving marketing decision making can improve our lives through better jobs, better products and services, and less time wasted with irrelevant marketing communications. Managers should be more involved with research from the start. They should share their specific scope and objectives to enable and enhance research relevance. They should articulate which insights they need at which time and in what form. Researchers, in turn, should broaden their consideration of performance metrics by integrating different methods and perspectives. It essential for research to “go beyond the paper” and communicate key insights to maximize impact.



Questions for the Classroom

  • What value does marketing bring to an organization?

  • How can marketing’s value be measured?

  • How would you communicate marketing’s value inside the organization?


Article Citation

Dominique M. Hanssens and Koen H. Pauwels (2016), “Demonstrating the Value of Marketing,” Journal of Marketing, 80 (6), 173-190.
doi: http://dx.doi.org/10.1509/jm.15.0417


Dominique M. Hanssens is Distinguished Research Professor of Marketing, Anderson School of Management, University of California, Los Angeles (e-mail: dominique.hanssens@anderson.ucla.edu).


Koen H. Pauwels is Professor of Marketing, Özyeğin University (e-mail: koen.pauwels@ozyegin.edu.tr).



The AMA / MSI Special Issue of Journal of Marketing
Volume 80, Issue 6, November 2016

V. Kumar, Kevin Lane Keller, & Katherine N. Lemon

Christine Moorman and George S. Day

V. Kumar and Werner Reinartz

Katherine N. Lemon and Peter C. Verhoef

Michel Wedel and P.K. Kannan

Rajeev Batra and Kevin Lane Keller

Cait Lamberton and Andrew T. Stephen

Dominique M. Hanssens and Koen H. Pauwels

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Dominique M. Hanssens & Koen H. Pauwels
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