Homburg et al. (2012): Marketing Performance Measurement Systems: Does Comprehensiveness Really Improve Performance?
9 important questions on Homburg et al. (2012): Marketing Performance Measurement Systems: Does Comprehensiveness Really Improve Performance?
In which part of the roadmap fits this article?
- So, the whole
What is the main question within the paper of Homburg et al. (2012)?
What is CMPMS and what are the three components of it?
- Breadth
- The extent to which the CMPMS provides a diverse picture of the marketing function through a variety of financial/nonfinancial and leading/lagging measures of marketing performance
- Strategy fit
- Extent to which the performance measurement system is deviated out of strategic marketing targets
- Cause-and-effect relationships
- Extent to which the PMS in marketing provides quantitative information about cause and effects within marketing relevant parts of the value chain
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What are the two mediating variables for the relationship between CMPMS and firm performance?
- Marketing alignment
- The extent to which managers execute their tasks and projects in line with strategic marketing objectives
- Market knowledge
What are the three moderating variables?
- Differentiation strategy
- Marketing complexity (within a firm)
- Market dynamism
- The frequency of changes in a firm’s product market
Explain the framework provided in the paper by Homburg et al. (2012).
- On the left, the three components of CMPMS are displayed
- In the middle, the mediating variables are displayed which are marketing alignment and market knowledge
- On the right, the firm performance measures are displayed
- Below, the contingency variables (moderators) are stated
- Above, the control variables are stated
The paper wants to analyze the main effect of CMPMS on the mediating variables and on firm performance.
Furthermore, the paper wants to analyze the effect of the contingency variables on
- the relationship between CMPMS and the mediators
- the mediators and firm performance themselves
What are the results with regards to the three components of CMPMS?
- Breadth
- No performance effects in terms of market knowledge
- Modest performance effects in terms of marketing alignment (+)
- Strategy fit
- Strong effects on marketing alignment for mean and high levels of all three moderators
- Cause-and-effect relationships
- Usefulness of market knowledge for mean and high status of all three moderators and for low values of differentiation.
- Importance of causal business modelling for individual and organizational learning
Result: Managers who design their performance measurement system with the intention of
- increasing marketing alignment
- acquiring market knowledge
should focus on?
- Increasing marketing alignment:
- Focus on improving strategy fit of performance measures and on then providing cause and effect relationships
- Acquiring market knowledge
- Focus on cause and effect relationships
What are the 4 key insights of the paper by Homburg et al. (2012)?
- If managers are interested in acquiring market knowledge within their marketing organization, they should focus on cause and effect relationships
- Firms facing high degree of marketing complexity should concentrate on both strategy fit and cause and effect relationship
- Marketing alignment and market knowledge are two important mediating variables between MPM and firm performance
- Performance outcomes of CMPMS are dependent on marketing strategy, marketing complexity and market dynamism
The question on the page originate from the summary of the following study material:
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