What Drives Managerial Use of Marketing and Financial Metrics and Does Metric Use Impact Performance of Marketing Mix Activities?
To increase marketing’s accountability, JM, MSI, and ISBM have advocated development of marketing metrics and linking marketing mix activities with financial metrics. While progress has been made, less attention has been paid to what drives managerial use of marketing and financial metrics and whether metric use is associated with marketing mix performance. A conceptual model is proposed which links firm strategy, metric orientation, type of marketing mix activity, and managerial, firm, and environmental characteristics to marketing and financial metric use which in turn are linked to performance of marketing mix activities. An analysis of 1,287 marketing mix activities reported by 439 U.S. managers reveals that firm strategy, metric orientation, type of marketing mix activity, and firm and environmental characteristics are more useful than managerial characteristics in explaining use of marketing and financial metrics and use of metrics is positively associated with marketing mix performance. Results allow identification of conditions under which managers use less metrics and how metric use can be increased to improve marketing mix performance.