Using The DuPont Decomposing Process To Create A Marketing Model

Abstract

The DuPont Model of Business is almost 100 years old. It provides a classic template for the decomposition process that can be used to build integrated systems of performance metrics. The marketing field has never embraced the DuPont Model as completely as accounting and finance because the focus is on the earning being return to the owner’s equity. Earnings flow is not the same as cash flow and marketing managers are more focused on operating profits than net profits. However, the decomposition process that is used to create the DuPont Model can be applied to the process of creating a Marketing Model. The paper reviews the classic decomposition process and uses it to create a new Marketing Model of Profitability.