The selection of financial performance, market performance, and marketing effectiveness as the foundational components for assessing a marketing division's score through the cumulative balanced scorecard is grounded in the comprehensive nature of the balanced scorecard methodology. This approach integrates multiple dimensions of performance, emphasizing that a successful marketing strategy is not solely focused on financial outcomes but also includes how the marketing efforts resonate in the broader market context and their effectiveness in achieving strategic goals.
Financial performance reflects the impact of marketing initiatives on the organization's overall financial health, measuring how well marketing contributes to revenue generation and profitability. Market performance assesses how well the organization competes in its respective market, including market share and competitive positioning. Marketing effectiveness evaluates how successful marketing campaigns and strategies are concerning reaching target audiences, engaging customers, and achieving marketing goals.
The other options, while containing relevant marketing concepts, do not encapsulate the multi-dimensional approach required by the balanced scorecard. They focus on specific aspects of marketing or customer-related metrics, lacking the comprehensive evaluation that combines financial results, market standing, and the effectiveness of marketing strategies.