This research project has been initiated to address a very specific problem area within the wider subject of marketing accountability. Marketers have long been under scrutiny to link marketing strategies, tactics and therefore marketing budgets to measurable economic outcomes. With the increasing penetration of information technology in the business world and alongside the steep increase of marketing technology investments, the pressure on marketers to proof their spending’s worth has risen even further. Failing to do so, marketing budgets started to decline while the average CMO tenure has fallen to an all-time low.

Academics have begun to address the problem of ambiguous marketing accountability through various studies, papers and research groups, yet so far missed to address the impact of marketing technology on the return on marketing investment from a holistic perspective. Multiple studies address singular and isolated impacts, but no study covers the impact on a direct return relationship within the function of marketing itself.

To address the above, the following research question has been formulated: To which degree do marketing technologies impact the return on marketing investment?

Following an extensive literature review process, the following construct variables were identified to be of relevance to the research question and therefore the objective of this very project: return on marketing investment, marketing budgeting, marketing technologies, marketing scope and influence, dynamic capabilities and environmental turbulence. The conceptual model has been structured, through an iterative review process of all variables. This resulted in a model with an order of three magnitudes of impact, to allow for a causal impact assessment of all identified variables and their hypothesised relationships on the return on marketing investment. The structure of this paper follows the bipolar objective to add to the academic and practitioner’s body of knowledge.

To align with the above defined objectives, a pluralist perspective with a focus on positivist research methods has been assumed as the research philosophy. This aligns with the request of many academics for a more pluralist perspective in the field of marketing research; particularly with the perspective to tighten the practitioner - academic gap. Successively, a mixed research method has been devised to build upon a qualitative investigation of the defined constructs under investigation before moving into a quantitative research phase. The data model for both qualitative assessment of instruments and outcomes, as well as data interpretation and discussion, is based on factor analysis and structural equation modelling. Ethical considerations were addressed, alongside a milestone plan for the subsequent field research phase.

The field research phase of this paper followed very stringently the previously defined sequential mixed research method. Explorative interviews initiated the field research phase and largely validated research constructs, but also provided inputs to refine the assumed
research instrument. The research instrument underwent a pre-test in the form of 11 returned questionnaires and revealed a promising Cronbach Alpha score of 0.871. Following, two methodological changes were initiated. One was the replicate the literature
review to assure the continuous relevancy of the research project. The other was to change the sampling method from relying on E-Mail and LinkedIn groups to composing a very innovative sampling approach based on a targeted LinkedIn campaign. The backbone to
this was a cluster sampling set-up. The actual field research was thus initiated in October / November 2019 to return 1465 valid responses. These responses were collected via the Questback survey tool and were rigorously quality tested. The Cronbach Alpha of the returned questionnaires computed to 0.837.

Following the data collection, a descriptive analysis of the data was conducted before engaging in the planned structural equation modelling process. Additional industry reports and academic papers were referenced to both challenge and validate findings. Major
findings of the descriptive analysis include a skewed marketing scope towards promotional marketing activities and a clear lack of marketing performance measure focus in organisations. Further, it was shown that marketers also miss to communicate the
importance of this performance focus, which is mirrored in the arbitrariness of marketing spending on technologies, but also the missing link of resource allocation based on marketing accountability.

The structural equation modelling process started by validating all variables through a confirmatory factor analysis, before creating the structural model to validate set research hypotheses, as reflected in the conceptual model of this thesis. Key fitness measures were assessed to validate the likely quality of the structural model. Some early learnings included a necessary split in some constructs, e.g., in the decision-making construct, to reduce the polarity of meanings and achieve a concave model. Major findings included, that the expected feedback loop of marketing performance on budget, scope and influence was missing. Also, no significant direct nor indirect relationship of marketing technology investments on marketing performance was identified. Other hypothesised relationships were positively confirmed. A rationale for the missing significant relationships of the negatively confirmed variable impacts was, that marketing performance measures showcased a high heterogeneity amongst all participating organisations. Only a fraction of organisations, 6%, measured marketing performance through the construct of return of marketing investment. This leads to a very high ambiguity in both the marketing function as well as top management, as to the true impact of marketing technology investments on the function of marketing or even the entire organization. With that, a vicious cycle is formed which biases marketers to continue their high spending pattern on technologies, without having clarity on how the impact of these investments will be measured, proven and utilized to the benefit of their very marketing responsibility. Further evidence to this was found in the missing impact of environmental turbulence on marketing performance, which has been additionally placed in context with the current COVID-19 pandemic.

Continuing the modelling process to create a path model, a best fit model of the data was identified to successively hypothesise additional path relationships. These relationships showcased how environmental turbulence impacts the marketing scope, the market
orientation of a firm and with that marketing influence. This allowed to form the assumption of uncodified organisational behaviour, which did not suggest any marketing return or performance relation.

Following, options were proposed to increase the accountability of the marketing function. First of all, by creating a mutually understood, but also rigorously communicated definition of marketing performance, or marketing return measures within organisations. This has to be the very responsibility of marketing leaders to positively impact and create the necessary feedback loops of marketing return on scope, budget and influence. It is thus vital to create a marketing performance culture and reduce the displayed management intuition impact on marketing. This allows to further relate marketing technology investments with expected
return outcomes and thus truly increase the dynamic marketing capabilities, which already showcased a positive relationship with the function’s return.

To end the thesis, additional limitations resulting from the choice of research method, particularly the innovative sampling approach, but also the complex data-analysis were addressed. Further research opportunities were identified. Some include the broadening of
the scope of this research project, the investigation of the forming of an organisationally aligned marketing performance understanding, or the understanding of the cultural impact on marketing performance by researching the underlying constructs in Asia. The latter would allow a cross-regional and cross-cultural comparison of findings.