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Article
Publication date: 1 January 1985

David W. Gillingham

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…

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.

Details

Managerial Finance, vol. 11 no. 1
Type: Research Article
ISSN: 0307-4358

Article
Publication date: 16 October 2023

Ekrem Yilmaz

The purpose of this paper is to examine the applicability of Preference Similarity Theory (PST) and Protection Motivation Theory (PMT) in identifying the target audience and…

Abstract

Purpose

The purpose of this paper is to examine the applicability of Preference Similarity Theory (PST) and Protection Motivation Theory (PMT) in identifying the target audience and developing effective marketing strategies, particularly in non-Muslim countries, to increase the market growth and reach of sukuk to broader investor groups and provide recommendations for such strategies.

Design/methodology/approach

After separately examining the effects of PST and PMT on marketing sukuk, recommendations are presented from a shared perspective of these two theories.

Findings

The findings of this study suggest that understanding the values, beliefs and perceptions of potential investors is crucial for effectively marketing sukuk investments, especially in non-Muslim countries. The PST and PMT provide useful frameworks for tailoring sukuk offerings and communicating effectively about the risks and benefits of sukuk investments to attract investors who identify with the values and beliefs embodied in sukuk.

Originality/value

To the best of the author's knowledge, this is the first paper to examine the marketing of sukuk in non-Muslim countries. This study is also the first paper to discuss sukuk in the context of PST and PMT. In addition, this study is expected to guide banks in the marketing of sukuk.

Details

Journal of Islamic Accounting and Business Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1759-0817

Keywords

Article
Publication date: 16 July 2019

Erika Sydney-Hilton and Natalia Vila-Lopez

The relevance of marketing to explain financial success has been seldom investigated. In this scene, the purpose of this study is to analyze whether the correlations between four…

Abstract

Purpose

The relevance of marketing to explain financial success has been seldom investigated. In this scene, the purpose of this study is to analyze whether the correlations between four marketing strategies and seven financial measures has increased (or not) over time.

Design/methodology/approach

To reach these objectives, secondary information about 500 companies operating in the USA was analyzed. This information was listed on the US Standard & Poor’s 500-company index (SPX Charts, 2019). Data were collected for eight different periods of time (from year 2009 to year 2016) and for 11 different industries. Multiple regression analysis and ANOVA tests were used.

Findings

First, two marketing investment decisions out of four (brand value and price) have displayed a significant and incremental change over time. The other marketing investment decisions (brand rank, communication and service) have not increased their importance with time. Second, in two investment decisions (brand value and price), correlations found with financial measures have strengthened over time.

Research limitations/implications

This study was conducted on large US public companies. Studying other sectors within the USA such as small capitalization firms or privately owned firms can lead to future discoveries, while looking at similar companies in different countries, could provide compare and contrast opportunities. Second, no qualitative data were obtained in this study, leaving potential for gaps in knowledge that could be remedied by qualitative analysis. Third, given that all marketing investment was considered of equal value in the present paper, future research could be done to avoid this limitation.

Practical implications

From a practical approach, the authors want to eliminate the dissonance between marketing and accounts as far as the lack of “marketing accountability” (Webster et al., 2003, p. 27) has lead marketing to “lost its seat at the table” (Kumar and Shah, 2009, p 119). That is, they want to call the attention to the relevance of investing in diverse marketing tools at the same time from an accounting approach, showing how these tools can be used to improve financial results. Kumar (2015) explains how, as companies strive to cut costs, meet annual revenue targets and maximize efficiency, less attention is being placed on the importance of forward-looking marketing strategies. The authors would like to show how favorable financial results are linked to diverse marketing investments. As Arslanagic-Kalajdzic et al. (2018) have underlined, there is a need for building, improving and sustaining marketing accountability within the firm and its relevance for value.

Originality/value

From an academic approach, the added value is to adopt a longitudinal perspective to analyze the evolution of marketing investment over time and its interesting results, given that, until now, most of the studies have focused on a specific period (Anderson et al., 2004; Fornell et al., 2006). Previous works have scarcely noticed that by better understanding how marketing investments impact regularly used financial variables, stakeholders can better assess the inner workings of a company (Ambler et al., 2001). Bridging this academic gap from a longitudinal perspective will enable marketing workers and accounting workers to act cohesively to cultivate successful companies.

Details

Journal of Business & Industrial Marketing, vol. 34 no. 7
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 13 April 2015

Stan Maklan, Joe Peppard and Philipp Klaus

The purpose of this paper is to examine the conundrum between the increasingly importance of investments in new information technologies (IT) on marketing practice and marketing

2611

Abstract

Purpose

The purpose of this paper is to examine the conundrum between the increasingly importance of investments in new information technologies (IT) on marketing practice and marketing scholars continuing to question the profitability of IT-led marketing initiatives.

Design/methodology/approach

Systematic reviews of the relevant literature on the financial and market return of customer relationship management (CRM) investments from both Marketing and Information Systems (IS) literature were conducted.

Findings

Findings suggest that, while both IS and Marketing scholars try to determine what generates returns on CRM investment, the IS community has a more complete conceptualisation as to how these returns are realised. A broader epistemological framework, better suited to observing how organisations benefit from IT-led management initiatives, enables a more comprehensive assessment of CRM investment.

Research limitations/implications

Supplementing the methods used by Marketing scholars with those frequently used in IS research would likely improve the assessment of IT-led Marketing investments and the resultant prescriptions for Marketing practitioners.

Practical implications

Failure to assess accurately the return from IT-led Marketing investments hinders managers’ ability to manage them for maximum performance improvements, all the more important now that organisations are preparing for large-scale investments in big data and social media strategies.

Originality/value

This paper is the first to illustrate how a combination of Marketing and IS scholarship can assist Marketing research and practice.

Details

European Journal of Marketing, vol. 49 no. 3/4
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 1 April 2002

Sam Dias and Lynette Ryals

Traditional methods of marketing evaluation may underestimate the true benefits from brand marketing, unless opportunities for brand extension are included in the evaluation…

3495

Abstract

Traditional methods of marketing evaluation may underestimate the true benefits from brand marketing, unless opportunities for brand extension are included in the evaluation. However, valuing brand extension opportunities is not without difficulties. Traditional discounted cash flow (DCF) analysis may underestimate the value of brand extension, in particular the value of flexibility, such as the ability to increase or decrease brand extension investment depending on future circumstances. An approach based on real options theory is recommended and it is demonstrated how this can be used both formally, to evaluate the contribution of marketing to the success of a brand extension, and informally, to influence the thinking of brand managers.

Details

Journal of Product & Brand Management, vol. 11 no. 2
Type: Research Article
ISSN: 1061-0421

Keywords

Article
Publication date: 1 June 2015

Matthew Sarkees and Ryan Luchs

The purpose of this paper is to explore the gap in the literature as well as investigate how the combination of internal marketing or innovation investments with new product…

1097

Abstract

Purpose

The purpose of this paper is to explore the gap in the literature as well as investigate how the combination of internal marketing or innovation investments with new product introductions influences alliance type choices. Most research on marketing–innovation resource allocation decisions has focused on trade-offs in internal investments such as advertising versus research and development. Absent from this discussion is whether firms offset a weakness internally by reaching outside the boundaries of the firm through alliances. As a result, managers lack a clear understanding of the potential for complementarity using internal–external approaches to a market.

Design/methodology/approach

This paper draws on the resource-based view of the firm, using a longitudinal secondary data set and a choice model.

Findings

The authors find that firms that internally emphasize either marketing or innovation maintain the same approach externally with respect to alliance type choices. Thus, efforts to complement internal marketing (innovation) resource investments with innovation (marketing) alliances are not seen. However, the interaction of new product introductions with internal resource investments does result in a complementary firm approach.

Originality/value

The authors bridge a gap in the resource investment literature by exploring how the internal decisions impact the external alliance choices. The authors draw on longitudinal data and show that the action of making the choice is important, as it impacts future resource decisions. The authors explore the interaction between new production introductions and internal firm investments on alliance type choice. Given that new product introductions are a key to longer-term firm success, examining these relationships enhances the managerial impact.

Details

Journal of Business & Industrial Marketing, vol. 30 no. 5
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 1 April 2003

Georgios I. Zekos

Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination of some…

95928

Abstract

Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination of some legal aspects concerning MNEs, cyberspace and e‐commerce as the means of expression of the digital economy. The whole effort of the author is focused on the examination of various aspects of MNEs and their impact upon globalisation and vice versa and how and if we are moving towards a global digital economy.

Details

Managerial Law, vol. 45 no. 1/2
Type: Research Article
ISSN: 0309-0558

Keywords

Article
Publication date: 4 November 2014

Jin-Soo Lee, Seongseop Kim and Steve Pan

This paper aims to, building on the concept of relational benefits, relationship marketing investments, gratitude, satisfaction and favorable reciprocal behaviors, examine the…

3129

Abstract

Purpose

This paper aims to, building on the concept of relational benefits, relationship marketing investments, gratitude, satisfaction and favorable reciprocal behaviors, examine the mechanism of cultivating relationships with valued customers at an upscale restaurant.

Design/methodology/approach

To capture the traits of the population (upscale restaurant customers who perceive relationship marketing investments by experiencing relational benefits), upscale restaurant customers with membership cards were contacted in the survey. Structural equation modeling was used to test measurement and structural models.

Findings

Empirical findings indicated that confidence and social benefits positively contributed to relationship marketing investments, whereas special treatment benefits were not significantly related to relationship marketing investments. In turn, relationship marketing investments positively affected both gratitude and satisfaction; relationship marketing investments were also more associated with gratitude than satisfaction. Gratitude positively evoked favorable reciprocal behaviors; however, satisfaction did not trigger favorable reciprocal behaviors.

Originality/value

The integration of relationship marketing investments and gratitude into the conceptual model would allow the current findings to generate rich theoretical and practical implications that the extant hospitality literature has not elucidated.

Details

International Journal of Contemporary Hospitality Management, vol. 26 no. 8
Type: Research Article
ISSN: 0959-6119

Keywords

Article
Publication date: 1 April 1996

Peter W. Turnbull and Theofanis Moustakatos

Examines the marketing of investment banking services and reviews critically the theoretical frameworks provided by the literature in the marketing of services field. Based on…

4216

Abstract

Examines the marketing of investment banking services and reviews critically the theoretical frameworks provided by the literature in the marketing of services field. Based on research interviews with 12 London‐based investment banks, discusses current marketing practices and identifies the critical marketing management issues facing the industry. Suggests a theory of marketing of investment banking services to guide the analysis of marketing practice.

Details

International Journal of Bank Marketing, vol. 14 no. 2
Type: Research Article
ISSN: 0265-2323

Keywords

Book part
Publication date: 21 August 2012

Janell D. Townsend, S. Tamer Cavusgil and Roger J. Calantone

Understanding the impact of marketing-related investments on market-based assets is a fundamental issue for marketers. In this study we address the relationship between…

Abstract

Understanding the impact of marketing-related investments on market-based assets is a fundamental issue for marketers. In this study we address the relationship between product-related investments and communication-related efforts, with respect to a basic intangible market-based asset: consumer-based dimensions of brand equity. We draw from a longitudinal study of pre-purchase brand attribute data derived from consumer panels, conducted within the context of the U.S. automotive market. Brand equity dimensions are statistically related to marketing investments and contextual factors of “region of origin” and “global brand reach,” employing a seemingly unrelated regression model. The results reveal a positive effect of communication-related investments, as measured by annual advertising expenditures, on all dimensions of brand equity except luxury image. Product-related investments, as indicated by a brand's innovativeness, positively affect brand image but negatively affect perceived economy. Region of origin and global brand reach have mixed effects on the consumer-based dimensions of brand equity.

Details

Interdisciplinary Approaches to Product Design, Innovation, & Branding in International Marketing
Type: Book
ISBN: 978-1-78190-016-1

Keywords

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