Title: An empirical study of benchmarking marketing efforts

Authors: Mehir Kumar Baidya; Bipasha Maity

Addresses: Department of Management, Amrita Vishwa Vidyapeetham, Bangalore Campus, Bangalore-560035, India ' School of Management, Presidency University, Bangalore, Bangalore-560064, India

Abstract: Shareholder value is non-negotiable in business. Marketing managers' should devise a marketing mix to create shareholder value. This work takes a modest attempt to devise and suggest a simplistic approach for managers of how to benchmark marketing efforts to maximise shareholder value. A quantitative research approach was taken into consideration. Four hypotheses were framed. Data on sales, advertising, and price were gathered from ten brands in a category over ten year. Thereafter, a hybrid regression model was fitted to data. Results reveal that the actual-points and the optimal-points of price and advertising are not equal in all nine cases in the pair-wise analyses. Findings of this research should guide managers to benchmark right price-point and right advertising-expenditures-point which indeed will maximise shareholder value of brand in question. This paper contributes to marketing because it highlights the role of marketing efforts in shareholder value creation and maximisation.

Keywords: advertising; brands; price; benchmarking; shareholder value; India.

DOI: 10.1504/IJBFMI.2019.101606

International Journal of Business Forecasting and Marketing Intelligence, 2019 Vol.5 No.2, pp.223 - 240

Received: 02 Mar 2019
Accepted: 06 Apr 2019
Published online: 13 Aug 2019 *

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