Measurement of return on marketing investment: A conceptual framework and the future of marketing metrics

There is growing recognition that firms in the contemporary business environment derive substantial and sustained competitive advantage from a bundle of intangible assets such as knowledge, networks and innovative capability. Measuring the return on such intangible assets has now become imperative for managers. The present manuscript focuses on the measurement of the return on marketing. We first discuss the conditions that make this task a high managerial priority. We then discuss measurement efforts to date, both in general management and marketing. We then offer a conceptual framework that places measurement efforts in a historical perspective. We conclude with a discussion on where the future of marketing metrics lies.