Marketing Expenditures: Investments or Expenses

Abstract

The treatment of marketing expenditures will influence how the firm makes decisions. This paper discusses the relationship between the firm's marketing effort and the firm's marketing investment. Current practice in most companies dictates that marketing costs are treated as expenses and this leads to marketing executives lacking the required information for effective decision making. Often the wrong pressures are placed on the marketing function resulting in poor marketing decisions and consequently affecting the financial performance of the firm.

Citation

Gillingham, D.W. (1985), "Marketing Expenditures: Investments or Expenses", Managerial Finance, Vol. 11 No. 1, pp. 16-22. https://doi.org/10.1108/eb013542