Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
6748172 | International Journal of Project Management | 2015 | 12 Pages |
Abstract
Assessing the value of marketing to a business remains a thorny issue in theory and practice. Decision-making at the finance-marketing interface is under-researched, particularly for project businesses. Confronted by demands of accountability concerning the allocation of resources to meet competitive pressures, the paper examines the quality and extent of dialogue in investment decision-making. The return on investment (ROI) and marketing-specific investment (ROMI) are important factors at the marketing-finance interface. ROMI/ROI is examined from quantitative and qualitative viewpoints. The empirical evidence shows that short-term financial criteria dominate and are misaligned to long-term performance of project businesses and business units. Marketing investment in relation to project markets poses a particularly challenging environment. Client lifetime value and programme data sets for ROMI coupled with qualitative decision-making offer ways forward with constructive dialogue at the finance-marketing interface. The paper concludes with detailed recommendations for research and practice.
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Authors
Hedley Smyth, Laurence Lecoeuvre,