Using non-financial indicators to predict future profits. The problem of rewarding the right things Establishing the right reward structure is extremely challenging. O’Connell and O’Sullivan aim to help in this. They tackle the problem that traditional finance/accounting measures are quite backwards looking. (They can also be manipulated to reward those who prioritize short-term, over long-term,…
Category: Marketing Metrics
A Sustainable Standard When Accounting For Marketing
The Sustainability Accounting Standards Board (SASB) seems to have been remarkably successful. They have recruited some well-known board members. These have included Michael Bloomberg, Mary Schapiro (former SEC chair), and Laura Tyson (former London Business School Dean). This has helped them raise their profile. They have been working on a sustainable standard when accounting for…
Marketing And Finance Working Together
Charlotte Rogers has a fascinating practitioner article on the Marketing/Finance interface published in Marketing Week. This is a positive piece. It outlines how marketing and finance groups are collaborating more. Much of the advice is sensible. For example, UKTV brought a finance person into the media review team. This meant the person was able to…
Meta-Analysis: Combining Many Results into One
How marketing impacts firm value is an important question facing for-profit businesses. In an ambitious paper Conchar, Crask and Zinkhan (2005) examined this. they did a meta-analysis: combining many results into one. Meta-Analysis Seem Like Hard Work The hard work involved in this paper is impressive. The authors looked at 88 studies of advertising and…
Some Notes On Intangible Value
The GIFT Report (Global Intangible Financial Tracker) 2016 is a really useful piece. A collaboration by Brand Finance (a brand valuation firm), CIMA (the Chartered Institute of Management Accountants), and the IPA (Institute of Practitioners in Advertising). It contains some notes on intangible value. It highlights major factors and trends in the reporting of this…
A (Very Badly Done) Illustration Of Accounting For Marketing
I am not an artist in any way. Given this I’m not an ideal person to illustrate ideas. That said, I wanted to quickly (sadly not as quickly as it looks) get across the message that accountants really aren’t doing enough on the reporting of marketing assets. Considering how financial accountants report on marketing assets…
Creating Discussions Between Marketers And Accountants
In a piece for my accounting body (ACCA) I discuss the problem of what to do in respect of brands on the balance sheet. My intention is to help foster a dialogue between (financial) accountants and marketers. I am all about creating discussions between marketers and accountants. A lot of this website speaks to that….
Why Value Marketing Efforts Even When Perspectives Differ?
Jonathan Knowles notes that different disciplines often come at brand equity from different perspectives. For the sake of clarity, he lays out three ways of looking at brand. He uses exemplars from marketing, finance, and accounting. Although, of course, no discipline is monolithic — many marketers might take the finance perspective, etc… Why value marketing…
Marketing Accounts For Managers
Xin Wang and I published a piece in the International Journal of Research in Marketing. We called the article Marketing Accounts. This discusses marketing accounts for managers. The full text of this research article is available free of charge. See the link below. (We would like to thank SSHRC/the Canadian government for this. They provided…
Measuring The Impact Of Marketing On Wall Street
Bernd Skiera, and a couple of colleagues, have a paper that considers a relatively recent wave of research in marketing academia. They tackle event studies. These look at the impact of specified “events” on the value of a firm. Measuring the impact of marketing on Wall Street. Marketing Events Clearly marketers tend to concentrate on marketing events….