An Analytic Approach To Balancing Marketing And Branding ROI

The marketing Return On Investment (ROI) has been a topic of considerable debate between proponents of brand management and those of marketing accountability. As the brand management discipline works to leverage marketing investments to meet the challenge of an increasingly fragmented media audience, financial stakeholders of corporations demand a greater visibility into these investments. Brand-managers justify their adversity to measuring marketing investments on the same ROI hurdles as other capital outlays on the basis of the long-term nature of marketing effect on sales, whereas financial stakeholders continue to evaluate those using short-term methods like marketing-mix models. This paper proposes leveraging consumer based equity measures measure the long-term effect of marketing on sales in addition to the short-term effects measured by marketing-mix models.