Abstract
Purpose The purpose of this paper is to explore a host of issues related to the use of marketing metrics and firm performance in the context of the Middle East. Specifically, it seeks to explore which marketing metrics relate to perceived performance, to understand how frequency of metric reporting impacts perceived performance, to identify the impact that marketing dashboards have on perceived firm performance and to analyze how measurement ability relates to perceived performance.
Design/methodology/approach This paper used an online survey administered to marketing managers at firms located in the Middle East. A total of 55 participants provided usable data. Participants provided the frequency at which 71 different marketing metrics are reported by their firms and their assessments of the firm's performance with respect to sales growth, market share growth, and profitability. In addition, they indicated whether or not a marketing dashboard was used to report these metrics, and if so, how long ago the dashboard had been implemented. They also assessed their firm's holistic ability to measure and use metrics compared to their competition.
Findings As expected, marketers in the Middle East found the marketing metrics examined to vary in their usefulness as judged by their relationship to perceived performance. For those metrics that were perceived to be useful, their utility tended to peak at a moderate level of reporting frequency. These findings also varied by the type of performance considered. The use a marketing metric dashboard did not relate to perceived performance, but the frequency with which the dashboards were reported was found to have a negative linear relationship to perceived performance. Overall, the more capable respondents judged their firms to be with respect to measuring and reporting metrics, the higher their perceived performance.
Practical implications This paper offers new insights into the usefulness of a wide variety of marketing metrics to marketers in the Middle East. It also provides guidance on the ideal reporting frequency for those metrics. The findings suggest that marketers in the Middle East should focus on reporting key metrics at an appropriate frequency, regardless of whether or not a dashboard format is used. If a dashboard is used, the results of this paper suggest that care should be taken that it not be reported too frequently.
Originality/value This paper contributes to our understanding of how marketing metrics relate to performance. As the first such study undertaken in the context of Middle Eastern marketers, it represents an important replication and extension of previous findings in other contexts.