What Is Their Significance in Business Decisionsgeorge
Because the performance of different areas of a company can be assessed by their financial contribution to the company`s overall result, marketing metrics provide a reliable way to demonstrate their contributions to achieving the desired business performance (Grbac and Meler, 2010). The application of marketing measures not only simplifies the performance measurement process (De Ruyter and Wetzels, 2000), but also allows for comparisons of firm results over different periods (Bennett, 2007; Hacioglu and Gök, 2013). However: „I felt like decisions took forever. The meetings we had lacked focus and wasted time,“ Alligood said, prompting him to introduce the decision tree and Pareto analysis methods into his decision meetings. It helped. „We stopped having the same discussions over and over again, and started developing action plans based on the most important decisions.“ These are examples of success based on strong decisions, but of course, not all decisions are successful. Continuous evaluation and review of decisions is a sign of a mature company. Otherwise, the decisions could lead to public failure. In the next section, we`ll look at some examples of unsuccessful decisions. Whenever you are faced with a decision, whether professional or personal, do your best not to rely on your past instincts or behavior to determine a course of action.
Instead, make a conscious effort to apply an analytical mindset. The ANOVA test found that the application of marketing measures included in the research is influenced by firm size, while capital structure has no significant effect. Small businesses were the largest users of non-financial measures. In medium-sized enterprises, financial ratios were mainly used. The lowest use for both sets of measures was observed in micro and large enterprises. These results may be due to the fact that micro-enterprises do not have a well-developed organisational structure or a separate marketing function. On the other hand, large companies often outsource some marketing activities and/or most of their marketing functions, which could be why managers at these companies are not sufficiently familiar with the level of use of these metrics – instead, they receive out-of-the-box reports. The first step to becoming more data-driven is to make the conscious decision to be more analytical, both in business and in your personal life. While this may sound simple, it`s something that requires practice. The survey therefore included the 12 most commonly used financial measures and the 12 most commonly used non-financial measures, according to a study by Kurtović et al. (2010); Faridyahyaie et al. (2012); Ambler (2004); Bennett (2007); and Solcansky et al.
(2011). The choice of these types of measures is particularly important for markets in transition economies, where the concept of marketing is generally less developed. The questions in the questionnaire were divided into three sections. The first group contained questions to determine the level of knowledge of marketing decision makers regarding the marketing metrics selected as a prerequisite for their application, which was also researched by Sampaio et al. (2011) and Cvitanovic (2018). The level of knowledge was assessed using the five-point Likert scale, with a score of 1 indicating the lowest level and the score 5 indicating the highest level of familiarity with the above parameters. The questions in the next part of the questionnaire focused on the application of these measures as a reliable indication of firm performance according to previous research by Gao (2010); Kurtović et al. (2010); Ambler (2004); and Bennett (2007). The questions in the third segment attempted to determine the importance of marketing measures for the strategic decision-making process of companies operating in Montenegro. This is particularly important when it comes to achieving trade objectives and enhancing competitiveness, as highlighted by Raghubir et al. (2010); Bennett (2007); Sampaio et al. (2011); and Frösén et al.
(2008). The Likert scale was also used in the last two sections of the questionnaire, with a score of 1 indicating the lowest level and 5 the highest level of decision-making. A large U.S. chemical company has been confronted with fairly large amounts of currency blocked in two West African countries in recent years.