The Future Of Marketing Requires A New Business Model, Not New Tactics

The Future Of Marketing Requires A New Business Model, Not New Tactics: Dominique Hanssens, Professor of Marketing at UCLA Anderson and former CEO of the Marketing Science Institute, shows in his book�Empirical Generalization About Marketing Impact�(2015) that marketing and sales promotion have no significant effect on business growth. His research found that a 10% increase in advertising spending only returned a 1% effect on short-term business performance while having an insignificant effect on long-term growth. Hanssens and Tesla both illustrate that business models where marketing is viewed as a promoter of products are fundamentally flawed. Let’s dig a little deeper to find out why.