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      1

      Jonathan Gordon and Jesko Perrey, “Boosting returns on marketing investment,” McKinsey Quarterly, June 2005, http://www.mckinsey.com/insights/marketing_sales/boosting_returns_on_marketing_investment.

1

Jonathan Gordon and Jesko Perrey, “Boosting returns on marketing investment,” McKinsey Quarterly, June 2005, http://www.mckinsey.com/insights/marketing_sales/boosting_returns_on_marketing_investment.

2

Peter A. Pyhrr, “Zero-base budgeting,” Harvard Business Review, November/December 1970, Volume 48, Number 6, pp. 111–121.

3

Matt Fitzpatrick and Kyle Hawke, “The return of zero-base budgeting,” McKinsey Quarterly, August 2015, http://www.mckinsey.com/insights/corporate_finance/the_return_of_zero-base_budgeting.

4

This is actually happening in many commoditized industries, from personal finance and airline travel to telecommunications and energy.

5

Advanced analytical approaches are required to control for external factors and isolate the business impact of marketing investments. See Chapter 6 for details.

6

The main section of this chapter is based on Tobias Karmann et al., “Budget sizing,” pp. 117–128, in Retail Marketing and Branding – A Definitive Guide to Maximizing Marketing ROI, by Jesko Perrey and Dennis Spillecke, Second Edition, John Wiley & Sons, 2013.

7

Kate Maddox, “Capital IQ debuts first ad campaign,” Advertising Age, October 20, 2008.

8

In an ideal world, you should measure and manage effective share of voice (i.e., the output that reaches your audience), rather than the share of spending (i.e., your input relative to that of your competitors). But in the real world, you will normally not have the data to quantify the share of voice you actually generate with your spending, except for a few instruments, such as TV.

9

John Philip Jones, “Ad spending: maintaining market share,” Harvard Business Review, January/February 1990 (https://hbr.org/1990/01/ad-spending-maintaining-market-share).

10

YCharts, “Who spends more on ads – Apple or Microsoft? Another lesson in quality vs. quantity,” Forbes, August 2, 2012, http://www.forbes.com/sites/ycharts/2012/08/02/who-spends-more-on-ads-apple-or-microsoft-another-lesson-in-quality-vs-quantity/.

11

According to Interbrand, Apple is the most valuable brand in the world, currently valued at USD 170 million http://interbrand.com/best-brands/best-global-brands/2015/ranking/ (retrieved 28 December 2015).

12

Glen L. Urban, “Direct assessment of consumer utility functions: von Neumann-Morgenstern utility theory applied to marketing,” MIT Working Paper 843-76, January 1977.

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