MARKETING MANAGEMENT
Getting the Marketing Mix Right
Marketers have a wide array of selling tools at their disposal, but lack an effective method for predicting their success. Associate Professor Thomas J. Steenburgh and collaborators offer a new model for guiding their marketing investments. Key concepts include:
Discrete choice models commonly used to evaluate marketing strategies often provide misleading results, leaving managers with the inability to accurately measure how they can get the best bang for their buck.
A new model could help managers figure out which marketing efforts work best, and therefore decide which strategies to invest in. by Dina Gerdeman
Businesses rely on solid marketing strategies to boost sales—yet the tools used to evaluate these strategies often provide misleading results, leaving managers with the inability to accurately measure how they can get the best bang for their marketing buck.
“Companies really need to pay attention to the effectiveness of their marketing instruments”
Thomas J. Steenburgh, an associate professor in the Marketing Unit at Harvard Business School, has developed a new analytical tool that more accurately measures the effectiveness of various marketing efforts. He created the model with Qiang Liu, an assistant professor of marketing at Purdue University, and Sachin Gupta, the Henrietta Johnson Louis Professor of Management and professor of marketing at Cornell University.
Steenburgh believes that the model could help brand managers determine which marketing strategies work best to invest in.
"Companies really need to pay attention to the effectiveness of their marketing instruments," Steenburgh says. "They need to look at whether they're creating new customers or whether they're just drawing customers away from competitors. It's a fundamental question in the field, and this model helps measure that."
The ideal mix
When planning marketing campaigns, brand managers have a wide portfolio of weapons to draw on, including
Marketers have a wide array of selling tools at their disposal, but lack an effective method for predicting their success. Associate Professor Thomas J. Steenburgh and collaborators offer a new model for guiding their marketing investments. Key concepts include:
Discrete choice models commonly used to evaluate marketing strategies often provide misleading results, leaving managers with the inability to accurately measure how they can get the best bang for their buck.
A new model could help managers figure out which marketing efforts work best, and therefore decide which strategies to invest in. by Dina Gerdeman
Businesses rely on solid marketing strategies to boost sales—yet the tools used to evaluate these strategies often provide misleading results, leaving managers with the inability to accurately measure how they can get the best bang for their marketing buck.
“Companies really need to pay attention to the effectiveness of their marketing instruments”
Thomas J. Steenburgh, an associate professor in the Marketing Unit at Harvard Business School, has developed a new analytical tool that more accurately measures the effectiveness of various marketing efforts. He created the model with Qiang Liu, an assistant professor of marketing at Purdue University, and Sachin Gupta, the Henrietta Johnson Louis Professor of Management and professor of marketing at Cornell University.
Steenburgh believes that the model could help brand managers determine which marketing strategies work best to invest in.
"Companies really need to pay attention to the effectiveness of their marketing instruments," Steenburgh says. "They need to look at whether they're creating new customers or whether they're just drawing customers away from competitors. It's a fundamental question in the field, and this model helps measure that."
The ideal mix
When planning marketing campaigns, brand managers have a wide portfolio of weapons to draw on, including