Brand Management: Research, theory and practice

Methods and data of the economic approach

The aim of data collection in the economic approach is to gather data that can
deliver insights that can guide the marketer in defining the exact marketing mix
that will deliver optimal brand performance – and thereby maximize the number
of transactions. The methods used in the economic approach are predominantly
quantitative, and data are interpreted using largely analytical techniques from
micro-economics, where focus is on the causal effects marketing activities have
on demand.
Since the Four Ps are rather operational and tactically focused, the methods
used in the economic approach are also very output and managerially oriented,
emphasizing the replicability of data and results. It is important that the results can
be applied directly and used for decision making and problem solving in relation
to the planning and execution of a marketing strategy. Creating mathematical
models that can measure and quantify data and thereby explain the phenomenon of
exchange between two entities is hence central. The mathematical models are key
because the process of measurement is considered the only valid connection
between empirical observations and the expression or explanation of how these
empirical observations are linked.
The overall objective of research and data collection in the economic approach
is to investigate how manipulating one or more factors of the marketing mix will
affect consumers’ brand choice. It is hence the investigation of the causal effects
between two or more variables relating to the marketing mix that is primarily
researched. It could for example be researched how sensitive consumers are to
promotions, where the research focus could be investigating consumers’ response

Theory

Assumptions

Methods and data

Managerial implications

Figure 4.5Theoretical building blocks of the economic approach

40 Seven brand approaches