Cookies

We use cookies to ensure that we give you the best experience on our website. By continuing to browse this repository, you give consent for essential cookies to be used. You can read more about our Privacy and Cookie Policy.


Durham Research Online
You are in:

Marketing as an investment in shareholder value.

Hughes, M. and Hughes, P. and Yan, J. and Sousa, C.M.P. (2019) 'Marketing as an investment in shareholder value.', British journal of management., 30 (4). pp. 943-965.

Abstract

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 a 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.

Item Type:Article
Full text:Publisher-imposed embargo until 25 January 2020.
(AM) Accepted Manuscript
First Live Deposit - 04 January 2018
File format - PDF
(951Kb)
Status:Peer-reviewed
Publisher Web site:https://doi.org/10.1111/1467-8551.12284
Publisher statement:This is the accepted version of the following article: Hughes, M., Hughes, P., Yan, J. & Sousa, C.M.P. (2019). Marketing as an Investment in Shareholder Value. British Journal of Management 30(4): 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 self-archiving.
Record Created:04 Jan 2018 10:13
Last Modified:15 Oct 2019 09:38

Social bookmarking: del.icio.usConnoteaBibSonomyCiteULikeFacebookTwitterExport: EndNote, Zotero | BibTex
Look up in GoogleScholar | Find in a UK Library