Article 14 Flashcards
Who wrote “Marketing Performance Measurement Systems: Does Comprehensiveness Really Improve Performance?”
Homburg, C., Artz, M., & Wieseke, J. (2012). Marketing Performance Measurement Systems: Does Comprehensiveness Really Improve Performance? Journal of Marketing, 76(3), 56-77. https://doi-org.ru.idm.oclc.org/10.1509/jm.09.0487
What is “Marketing Performance Measurement Systems: Does Comprehensiveness Really Improve Performance?” about?
Comprehensive performance measurement systems such as the balanced scorecard have received considerable attention in marketing. However, whether and under which circumstances comprehensiveness as a performance measurement system property is desirable and contributes to firm performance is still a subject of debate in
research and practice In particular, the results show that the relationship of comprehensiveness in a marketing performance measurement system to firm performance is conditional. Marketing alignment and market-based knowledge mediate this relationship, depending on marketing strategy, marketing complexity, and market dynamism.
What are the three components of CMPMS (Comprehensive Marketing Performance Measurement Systems)?
(1) breadth, (2) strategy fit, and (3) cause-and-effect relationships
What is meant by “breadth”, in Homburg et al 2012?
The extent to which the system provides a broad view of marketing performance using financial and nonfinancial measures.
What is meant by “strategy fit”, in Homburg et al 2012?
the extent to which the performance measurement system reflects strategic
marketing targets
What is meant by “cause-and-effect relationship”, in Homburg et al 2012?
describes the extent to which the MPMS provides information about causes and effects within marketing-relevant parts of the value chain, thus “making the business model explicit
Homburg et al 2012 explores the effects of which three factors (contingency variables) on the relationship between CMPMS and its mediators?
- Differentiation Strategy: How firms set themselves apart from competition.
- Marketing Complexity: Diversity of marketing portfolio.
- Market Dynamism: Frequency of change in firms product market.
What are the key takeaways from Homburg et al 2012?
The findings suggest that CMPMS is not universally beneficial but works best in firms with high marketing complexity, differentiation strategies, or dynamic market environments. Managers should only invest in comprehensive performance measurement systems if their firm operates in contexts where alignment and market knowledge are critical for success. For firms in stable or low-complexity environments, simpler performance measurement systems may be sufficient.