describes how pauwels\' award winning research can help companies measure and improve their return on marketing investment

1. How to Measure and Grow Return on Marketing Investment across Markets and Marketing Actions Professor dr. Koen Pauwels Ozyegin University, Istanbul Tuck School of Business at Dartmouth

11. Price deal yields positive consumer response, but lowers future sales, especially if competitors react

12. Discount ‘works’, so firm repeats

13. Worst case: each time you promote it hurts your bottom line

14. Best case: permanent benefits through consumer trial and learning

15. Profitable Growth Conditions Mature Markets Changing Markets Campaign Marketing Business-as-Usual FMCG promotions Pharma advertising Permanent Benefit Automobiles Product innovation Changing Marketing Escalation Automobiles Price Rebates Evolving Business Medical Services Detailing

16. Journal Advertising Works Right Away, then dies out

17. Direct-to-Consumer ads show Wear-in and Wear-out

18. What is the Best that could Happen?

19. One-shot innovation increases Honda’s Firm Value Forever

20. Long-Term ROI Varies by Segment and Firm 0 50 100 150 200 250 Cars Trucks Minivans & SUVs ROI in $ Millions Toyota Daimler-Chrysler General Motors Ford

21. And by Innovation Level

22. In Contrast, Rebates Decrease Firm Value in the long run

23. As They lead to Competitive Escalation

24. Finally, are some Actions Needed to Maintain Sales ?

25. How to Grow ROMI ? Mature Markets Changing Markets Marketing Campaigns Continue to create better campaigns Focus and be ready to handle growth Changing marketing Allocate $ to other marketing actions Ensure marketing spending keeps up with sales