Financial evaluation of marketing investments – Literature review
The issue of financial evaluation of marketing investments has led to ahigh quantity of different metrics and measurements in the modernliterature. In this research the literature is systematically examined forvarious metrics and structures to provide an overview of the currentlyknown approaches and offer managers different possibilities to arguefor their next marketing investments. In order to carry this out conscientiously,the focus of this literature review is on customer value creationof marketing investments involving only brand effects which influencecustomer equity. To ensure the quality of the reviewed paper, only paperswhich are ranked by the German Academic Association for BusinessResearch are reviewed. The results show that the approach of customerlifetime value summed up to customer equity and modified bymultiple possible additions (e.g. word of mouth multiplier or the valueof satisfaction) has emerged as generally preferred way to assess thefinancial value of customer related marketing investments. Differentsegmentations and budgets are also important components and implementableby presented approaches. The usage of individual metrics thatrelate specifically to individual marketing activities can complement themeasurement and offers another insight in high spending marketingactivities. Finally, the paper also investigates external influences of theenvironment like country specific cultures and politics. This completesthe overview of the existing approaches and their significance, whenthe topic of financial evaluation of marketing investments emerges inthe next important meeting.