BJM-16-399 MH PH KY CS Mrktg as Inv in Shrhldr Val BJM accepted 1-1-2018.pdf (545.5 kB)
Download file

Marketing as an investment in shareholder value

Download (545.5 kB)
journal contribution
posted on 11.01.2018, 09:17 by Mathew HughesMathew Hughes, Paul Hughes, Ji K. Yan, Carlos M. Sousa
We present resource-based and capability-based arguments of marketing investment intensity to offer a strategic view of marketing as an investment in shareholder value. We find that marketing investment intensity has a U-shaped quadratic effect on shareholder value creation (Tobin’s q) that calls for marketing investment to be protected and increased, not surrendered. We show how marketing investments interact with investments in R&D, human capital and operations to reveal how strategic co-investments can alter the shareholder value of marketing. Finally, we show how competitive intensity and failings in the firm’s investment productivity (its ability to convert investment expenditure into sales) point to malaise in the firm’s own strategic architecture as fault for perceived poor returns from marketing investments. Our findings suggest that marketing investment should not be scapegoated when its contributions to shareholder value are not as expected. When invested in strategically and in combination with other investments, marketing can unlock exciting improvements in shareholder value.

History

School

  • Business and Economics

Department

  • Business

Published in

British Journal of Management

Volume

30

Issue

4

Pages

943-965

Citation

HUGHES, M. ... et al, 2018. Marketing as an investment in shareholder value. British Journal of Management, 30(4), pp.943-965.

Publisher

© British Academy of Management. Published by Wiley

Version

AM (Accepted Manuscript)

Publisher statement

This is the peer reviewed version of the following article: HUGHES, M. ... et al, 2018. Marketing as an investment in shareholder value. British Journal of Management, 30(4), pp.943-965, which has been published in final form at https://doi.org/10.1111/1467-8551.12284. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions.

Acceptance date

01/01/2018

Publication date

2018-01-25

Copyright date

2018

ISSN

1045-3172

eISSN

1467-8551

Language

en