n South African Journal of Economic and Management Sciences - A marketing perspectives on the impact of financial and non-financial measures on shareholder value
|Article Title||A marketing perspectives on the impact of financial and non-financial measures on shareholder value|
|© Publisher:||University of Pretoria|
|Journal||South African Journal of Economic and Management Sciences|
|Affiliations||1 University of Stellenbosch, 2 University of Stellenbosch, 3 University of Stellenbosch and 4 University of Stellenbosch|
|Publication Date||Jan 2013|
|Pages||216 - 230|
|Keyword(s)||M368, Marketing performance measures, Shareholder value and Time series analysis|
ISI Social Science
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.
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