Developing an effective marketing performance measurement system in the UK biotechnology companies
This research explores the relationship betwen marketing efforts and company performance. Marketing actions will create customer impact and market impact, which will eventually have impact on the financial position of a company. The results of this research identify the use of marketing performance measurements and the relative importance of the intabgible assets in the UK biotechnology companier. 10 performance measurements are recommended to the UK biotechnology companies for the assessment of their marketing performance. These performance measurements cover the areas that are likely to have significant impact on the financial performance of biotechnology companies. Moreover, a model was developed to explain the establishment and implementation of a marketing performance measurement system. Questionnaire, interview and case studies were the methodologies used in this research. questionnaires were mailed to all the 566 manufactures and suppliers ofbiotechnology products listed in the UK Biotechnology Handbook 2000. 142 companies completed and returned the questionnaire. Excluding the companies that were not appropriate for the research, had changed address or closed down, the response rate of the questionnaire was 37.7%. 15 interviews over 12 biotechnology companies were carried out in order to achieve the objectives of the research. The findings of the research can be summarized as follows. The UK biotechnology companies take account of a wide range of performance measurements, both financial and non-financial, to assess their marketing performance. However, biotechnology companies focus on 11 key performance measurements which are financial focused. Profit, new contracts secured, cash reserve, funding of R & D, met goal, profitability of new products, customer perceived quality, number of new customers, brand loyalty and market share are recommended as key performance measurements. Moreover a model was developed to clarify the interactions between the components of a marketing performance measurement system.