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INTRODUCTION
Corporations are engaged as corporate cost cutters to maximise the shareholders' return. Marketing is at the top of the list because this is the area where rigorous financial evaluations have not been used extensively to justify the expenditures within a firm. Manufacturing costs have been reduced from 50 per cent to 30 per cent, and general management costs have also declined as a proportion of the total corporate costs from 30 per cent to 20 per cent, but in contrast to manufacturing and general management costs, marketing costs have increased significantly from only 20 per cent of the total corporate costs 50 years ago to 50 per cent today. 1
In spite of the huge marketing expenditures, managers frequently do not have concrete measures or knowledge of what is obtained in return from a significant investment in marketing. Moreover, many have doubted that definite quantitative measurements of marketing effectiveness could ever be made. Without measurement of return-on-investment (ROI), weak and ineffectual programmes continue year after year, consuming large sums of money.
To assess the effectiveness of marketing expenditures, both financial and nonfinancial indicators are needed. The financial indicators are sales, profits, ROI, etc. The nonfinancial indicators are customer satisfaction index (CSI), awareness level of customers, purchase intentions, etc. It is necessary to move beyond sole reliance on financial indicators for measuring the effectiveness of marketing programmes. For instance, in the case of consumer goods, where repeat buying is an important aspect, measuring the satisfaction level of customers (nonfinancial indicator) will be helpful. Moreover, a manager clearly needs a combination of both the financial and nonfinancial indicators to get an idea about the effectiveness of individual marketing efforts.
PURPOSE
The purpose of this paper is twofold. First, the relationship between marketing efforts (advertising, salesforce, sales promotion, distribution and price) and sales will be examined. Further, the relationship between customers' emotional reactions towards each marketing effort and overall customer satisfaction will be investigated. Secondly, the CSI and adjusted ROI for each effort will be calculated. The results will be used to compare the effectiveness of individual marketing efforts for the brand.
The structure of this paper is as follows: first, the previous related studies have been discussed very briefly. The objectives, models, hypotheses and methodology...