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Marketing Metrics for B2B Firms

Author(s): Raji Srinivasan

Excerpt from the Handbook of Business-to-Business Marketing (Edited by Gary L. Lilien, Distinguished Research Professor of Management Science, The Pennsylvania State University and Rajdeep Grewal, Kenan-Flagler Business School, University of North Carolina, US). Complete book available at

Marketing managers face increasing accountability of their programs by their colleagues. Finance executives need to assess the payoffs of marketing investments. A recent McKinsey survey, presented at the Chief Marketing Officer Summit at Wharton, found that CEOs expect marketing leaders to not only cut costs but also increase contributions to growth. Across diverse industries, marketing and finance executives are under incredible pressure to make every dollar count. With this in mind, in this chapter, I will discuss approaches to allocating resources across marketing programs and evaluating the effectiveness of these programs, including the creation of intangible assets including, brands, channels and customer satisfaction. I will discuss methods to evaluate the financial impact of marketing expenditures, both in the short term and the long term, specifically for business to business firms. The chapter will touch on various topics including: Linking marketing metrics to financial metrics, assessing the ROI of alternative growth paths, what the CFO wants to hear from marketers, Brand as a platform strategy, Measuring brand value, Assessing the lifetime value of customers, Measuring the likelihood of repeat purchases, Measuring marketing assets and Measuring Customer satisfaction: linking drivers, outcomes, and profits.

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