ABSTRACT

Productivity emerged as a major concern of American business early in this decade (Business Week 1981, Byrne 1981). It remains so today (Hayes and Clark 1986, Skinner 1986). As a large and increasing expenditure category, marketing productivity has mirrored this overall concern (Greyser 1980, Webster 1981, Fortune 1985, Magrath and Hardy 1986). Two statements made by executives in

Greyser’s 1980 study remain valid today and bear repeating:

“Senior management is concerned with evidence on the effectiveness of high marketing and advertising levels. The CEO with a nonmarketing background wants more rigorous demonstration of what return he gets from the marketing investment and is more likely to expect marketing to be a science rather than an art.”