Marketing Strategy and Wall Street: Nailing Down Marketing's Impact

• Main Authors: Hanssens, Dominique M., Rust, Roland T., SRIVASTAVA, Rajendra Kumar
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2008
• Subjects: marketing-finance interface; firm financial value; brand value; efficient markets; brand equity; Business Administration, Management, and Operations; Management Sciences and Quantitative Methods; Marketing
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/1250; https://ink.library.smu.edu.sg/context/lkcsb_research/article/2249/viewcontent/RSrivastavaJmkg200873.pdf
• Institution: Singapore Management University

Stock prices are based in large part on corporate financial statements, augmented by analysis by stock analysts. The ultimate goal of any marketing expenditure should be to increase the value of the firm, but the road from marketing expenditure to stock price is usually circuitous. This is because marketing’s path to financial impact is through revenues, and the road to revenues runs through the customer.