Chapter 9: The Marketing–Finance Interface: An Organizational Perspective
Peter C. Verhoef and Joost M.E. Pennings INTRODUCTION Within the marketing literature there is an increasing debate on the declining role of marketing. Webster et al. (2005) specifically discuss the decline and also dispersion of marketing, where dispersion means that nowadays everyone is responsible for marketing. Nath and Mahajan (2008, p. 65) maintain ‘that over the past three decades marketing academics have raised their concern with marketing’s decreasing influence at the level of corporate strategy.’ They also state that the roles of the general managers, chief financial officers (CFOs) and ‘other penny pinchers and number crunchers’ have become more important than the role of chief marketing officers (CMOs). Recently, Verhoef and Leeflang (2009) investigated this declining role and showed that marketing has become mainly responsible for advertising, promotions, relationship marketing initiatives, and customer satisfaction measurement. Distribution and pricing have become the responsibility of other departments, such as sales and finance. Their findings seem to confirm that marketing is now mainly involved with tactical decisions (Sheth and Sisodia, 2005), where in fact they are only responsible for a limited set of these decisions, mainly focusing on advertising and customer relationship building. One of the crucial problems mentioned in these discussions is the assumed weak link between marketing and finance and the lack of contribution of marketing to firm performance. In this respect some statements are rather blunt. For example, McGovern and colleagues (2004, p. 70) argue that ‘misguided marketing strategies have destroyed more shareholder value, and probably more careers, than shoddy...
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