文档介绍：Ramesh . Rao & Neeraj Bharadwaj
Marketing Initiatives, Expected Cash
Flows, and Shareholders’Wealth
It is widely accepted that marketing initiatives help firms acquire and retain customers. However, the link between
the cash flows generated by customers’ purchases and shareholders’ wealth is not fully understood, and the
literature is increasingly advocating the need for greater “marketing accountability.” In this interdisciplinary research,
the authors adapt the theory of firm valuation from finance and show that a marketing action can affect the
shareholders’ wealth by (1) determining the firm’ present value (the “stock price effect”) and (2) potentially
reducing the firm’s cash needs (the “released working capital effect”). In demonstrating these results, the authors
advance marketing theory by answering calls made in the literature to link marketing actions to the investors’ cash
flows, the firm’s working capital needs, and the owners’ wealth. The approach also shows that by reducing the firm’s
cash needs, marketing can increase the firm’s productivity (operating efficiency). This imputes a critically important
role for marketing. By increasing productivity, marketing can increase the firm’petitive posture and, thus, its
long-term viability.
Keywords: marketing strategy, marketing accountability, firm value, shareholder wealth, productivity
here is increasing recognition in marketing that the been suggested that marketing activities must be linked to
field must e more financially accountable (., cash flows (Anderson 1982; Day and Fahey 1988; Doyle
TLehmann 2004; Rust, Zahorik, and Keiningham 2000; Rust et al. 2004). If the marketing activity requires
1995; Srivastava, Shervani, and Fahey 1997). Because man- an investment today, the key to justifying this investment is
agers of a publicly traded firm have a fiduciary duty to to articulate how it affects the investors’ cash flows and
maximize the shareholders’ wealth, there is more