Optimization models for assessing marketing efficiency in multi-branch organizations

In this paper an analytical model is proposed, namely data envelopment analysis, for assessing marketing efficiency in multi-branch retail organizations. Different marketing efficiency yardsticks are proposed to match the multi-level nature of management in these organizations. These are aggregate marketing efficiency concerning the central management of the organization, site-specific marketing efficiency concerning local management and improved scale-size targets concerning the alteration of certain aspects of the marketing mix of individual outlets in order to improve the overall performance of the organization. The research also investigated the profit implications of adjusting the marketing mix of inefficient outlets, assessment of the effectiveness of alternative types of store assortment and evaluation of locations for opening retail branches. The methodology is demonstrated on data from 154 public houses that are directly controlled by one of the top five retail brewers in the UK.