Marketing performance frameworks in an MNC Marketing strategy, implementation and control point of view

Abstract

Understanding marketing’s efficiency and effectiveness is crucial for business managers in order to make fact-based decisions regarding marketing investments and future activities. Marketing performance frameworks are comprehensive systems of marketing metrics to assess the performance of marketing activities, but according to studies, they are not widely leveraged by business managers.

The purpose of this study is to understand marketing performance frameworks from marketing strategy, implementation and control point of views. The objective is to study the constructs as phenomenon, rather than as a process. The objective is to understand how marketing performance framework should be linked with marketing strategy, which factors influence marketing implementation in terms of adaptation and standardization in local business units of MNC and what kind of control tools can be used to manage the marketing performance.

The theoretical framework of the study consists of marketing strategy implementation and marketing performance framework literature. First, marketing strategy implementation at MNCs is discussed in terms of factors influencing standardization and adaptation. Also the concept of marketing control and forms of control are introduced. Second, the concept of marketing performance frameworks are examined within MNC-context aiming at finding a link between marketing strategy and performance framework.

The empirical part of this study is conducted following the principles of a single case-study method, since the research is conducted within one MNC. The focus of this study is on one particular marketing performance program of the case company. Four interviews are used as the main data collection method, but are supported by a number of unpublished materials.

This study mostly supports the theoretical framework of the study. The marketing strategy and marketing performance framework should be aligned on financial, customer, internal processes, innovation and corporate culture levels in order to create a strong link between the strategy and measurement, which supports business managers’ strategic decision-making. MNC should aim at a standardized marketing performance framework, but allow adaptation on metrics when required. Factors influencing the adaptation and standardization supported in this study were: consumer preferences, customer needs, market development and conditions and the need for central control. Regarding the control tools, this study supports the theory that both formal and informal control methods should be leveraged.