A marketing perspective on the impact of financial and non-financial measures on shareholder value
Date
2013
Journal Title
Journal ISSN
Volume Title
Publisher
University of Pretoria
Abstract
The pressure for financial accountability contributed to widespread concern about the function of marketing
within the company. Consequently, marketers have become preoccupied with measuring the performance
of marketing activity. Diverse financial and non-financial methods have been developed to provide evidence
of how marketing activity impacts on the bottom line. This article proposes an approach whereby financial
and non-financial performance measures are combined to measure the contribution of marketing to sales.
Secondary data from two retail brands within the same industry were analysed whereby actual accounting
data were adjusted to examine the link between marketing expenditures, specifically with regard to the 4Ps
(typical non-financial measures), and sales. The results of the time series regression showed that the nature
of the relationship between marketing expenditures and sales is dependent largely on the product
characteristics. The link between marketing and sales depicted serves as a starting point from which to build
a more robust measurement tool incorporating financial and non-financial marketing performance measures
that will serve to justify investment in the marketing of a brand.
jfl201606
jfl201606
Description
CITATION: Terblanche, N. S., Gerber, C., Erasmus, P. & Schmidt, D. 2013. A marketing perspective on the impact of financial and non-financial measures on shareholder value. South African Journal of Economic and Management Sciences, 16(2):216-230.
The original publication is available at http://www.sajems.org
Ekonomiese En Bestuurswetenskappe
Ondernemingsbestuur
The original publication is available at http://www.sajems.org
Ekonomiese En Bestuurswetenskappe
Ondernemingsbestuur
Keywords
Marketing -- Management, Marketing -- Evaluation
Citation
Terblanche, N.S., Gerber, C., Erasmus, P. & Schmidt, D. 2013. A marketing perspective on the impact of financial and non-financial measures on shareholder value. South African Journal of Economic and Management Sciences, 16(2):216-230.