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This article shows that non-financial measures of marketing effectiveness drive the financial performance measures such as sales, profits and shareholder value in both the short and the long term. The framework separates marketing actions from the overall conditions of the firm, as reflected in its assets.

The chain starts at the strategies of the firm, which is implemented in the tactical marketing actions. Further on, these actions will give impact to the customer in shaping the attitude or performing satisfactions.

Strong customer base will become a marketing asset to the firm, as a basis to strengthen its market position. Customer impact will be cascaded in the aggregate level as market impact that further will give a financial impact from the revenue it generates. Strong financial impact will give a higher ROI and this will make a stronger financial position and give impact to firm value, since financial position (cash flow, profitability) is used as a basis to calculate value of the firm.

This article concludes that the evaluation of marketing productivity ultimately involves projecting the differences in cash flows that will occur from implementation of a marketing action. On the other hand, this article also propose that from an accounting standpoint, decomposition of marketing productivity into changes in financial assets and marketing assets of the firm as a result of marketing actions might be considered.

Srinivasan, S., and Hanssens, D.M. (2009). Marketing and Firm Value: Metrics, Methods, Findings and Future Directions. Journal of Marketing Research, 46, 293-312.

This article examines the methods for determining the impact of marketing on investor valuation and summarizes the existing findings in this area. The important research questions on marketing and firm value is provided as well as the review on key investor response metrics and relevant analytical models as they relate to marketing.

This article explains about two fundamental metrics in finance: returns/levels metrics and risks/volatility metrics. Market capitalization, stock return, Tobin’s q and market-to-book ratio are in the category of returns/levels metrics. As figure 2.3 shows, the total stock returns have two parts: expected returns and abnormal returns. Risk/volatility metrics is covering cash flow volatility, systematic market volatility and idiosyncratic volatility (firm-specific risk). Firm risk has two components: systematic risk (risks related to the variability in the market) and unsystematic risk (firm-specific risks).

Marketing asset metrics are also explained in this article. Fall into this are brand equity, and customer metrics such as customer satisfaction, customer equity and perceived product quality.

Marketing action metrics include new product, advertising and promotions, channels of distribution and so on.

This article explains that in the previous years, the main concerns of marketers were how to acquire and retain the customer so that they would bring more and more revenue to the company, but now the focus is shifted on how to manage customer so that customer can increase value of the f本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。