Vladyslav Heorhitsa

A holistic approach to marketing growth of small and medium enterprises: development and application of the HMGI index

Introduction

A holistic approach to marketing growth of small and medium enterprises: development and application of the hmgi index. Discover the Holistic Marketing Growth Index (HMGI), a comprehensive tool for SMEs to assess and drive marketing's contribution to overall business growth. Optimize strategies with integrated insights.

Abstract

The article explores a holistic approach to assessing marketing growth in small and medium-sized enterprises (SMEs). This approach is intended to replace fragmented metrics that capture only isolated aspects and often focus on short-term outcomes. The purpose of the study is to propose the Holistic Marketing Growth Index (HMGI) as an easy-to-use yet comprehensive tool that demonstrates how marketing contributes to overall company growth. The subject of the research is the systemic evaluation of marketing performance across several groups of indicators: financial results, brand strength, customer behavior, effectiveness of digital channels, and the company’s internal capacity for renewal and development. The HMGI method consists of several steps. First, the relevant indicators are selected. Next, they are normalized to a common scale to ensure comparability. Each group of indicators is then assigned a weight, and all results are combined into a single index. The method also provides for comparison with typical industry benchmarks and tracking of dynamics over time. This procedure makes the data easier to interpret and allows managers to identify what is working well and what requires attention quickly. An illustrative example demonstrates that an integrated view more accurately reflects the real contribution of marketing to business growth than analyzing individual KPIs. In addition, the index helps to detect interactions between channels and direct investments to areas with the highest potential impact. The findings indicate that HMGI can serve as a practical tool for business owners and executives: it helps with planning, setting priorities, and clearly communicating decisions to teams and partners. The scientific novelty lies in bringing diverse indicators into a single, coherent system that can be updated and used for continuous monitoring. The practical value is reflected in the rapid diagnosis of strengths and weaknesses of a marketing strategy and the support of accurate, evidence-based decisions. Limitations include the quality of input data and the choice of weights. Future research should focus on testing the model across different markets, validating it with real companies, and expanding the set of indicators. JEL Classification: М31, О32, L26

Review

This article addresses a significant challenge in small and medium-sized enterprises (SMEs): the fragmented and often short-term focused assessment of marketing growth. The authors propose a timely and relevant solution: the Holistic Marketing Growth Index (HMGI). By aiming to integrate a broad spectrum of indicators—spanning financial results, brand strength, customer behavior, digital channel effectiveness, and internal capacity for development—into a single, coherent system, the study offers a novel approach to understanding marketing's true contribution to overall company growth. The emphasis on moving beyond isolated metrics is a commendable step towards a more strategic and insightful evaluation of marketing performance. The methodology for constructing the HMGI is clearly outlined, involving systematic steps from indicator selection and normalization to weighting and aggregation. This structured approach, combined with provisions for benchmarking and dynamic tracking, significantly enhances the interpretability and actionable nature of the index. The abstract highlights the practical utility of HMGI as an easy-to-use tool designed to assist business owners and executives in rapid diagnosis of marketing strategy strengths and weaknesses. The illustrative example, as mentioned, effectively demonstrates how an integrated view can more accurately reflect marketing's impact, aiding in resource allocation and strategic decision-making. While the HMGI presents a compelling framework with considerable practical value for SME managers, the abstract also forthrightly acknowledges crucial limitations. The quality of the input data and, critically, the choice of weights assigned to different indicator groups are inherent challenges that could significantly influence the index's accuracy and reliability. Future research, as suggested by the authors, should appropriately prioritize extensive validation through real-world company applications across diverse markets. Further expansion and refinement of the indicator set will also be vital to ensure its continued relevance and comprehensiveness, making the HMGI a robust and widely applicable tool for assessing holistic marketing growth.

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