Marketing and Finance: Creating Shareholder Value

Book description

Written for marketing and finance directors, CEOs, and strategists, as well as MBA students, this practical book explains the principles and practice behind rigorous due diligence in marketing. It connects marketing plans and investment to the valuation of the firm and how it can contribute to increasing stakeholder value. Completely revised and updated throughout, the Second Edition features new case examples as well as a completely new first chapter containing the results of new research into risk and marketing strategies amongst Finance Directors and Chief Marketing Officers.

Table of contents

  1. Cover Page
  2. Title Page
  3. Copyright
  4. Dedication
  5. Contents
  6. Foreword
  7. Foreword from the First Edition
  8. A note for busy people: How to get the best out of this book
  9. List of figures
  10. List of tables
  11. Part 1: What is Marketing Due Diligence?
    1. Chapter 1: The Lessons of Experience
      1. Introduction
      2. Success stories
      3. Failure stories
      4. Seeing a pattern
      5. A new approach
      6. Endnotes
    2. Chapter 2: A process of Marketing Due Diligence
      1. What is marketing?
      2. What is the connection between marketing and shareholder value?
      3. What is the Marketing Due Diligence diagnostic process?
      4. What is the Marketing Due Diligence therapeutic process?
      5. Implications of the Marketing Due Diligence process
    3. Chapter 3: The implications of implementing Marketing Due Diligence
      1. The linkage to shareholder value
      2. The risk and return relationship
      3. A focus on absolute returns rather than risk
      4. Using probability estimates to adjust for risk
      5. Alignment with capital markets
      6. Turning Marketing Due Diligence into a financial value
      7. Highlighting deficiencies and key risks
      8. Implications for users
  12. Part 2: The Marketing Due Diligence Diagnostic Process
    1. Chapter 4: Assessing market risk
      1. Some important background to what constitutes ‘success’
      2. Market risk
      3. Conclusion
    2. Chapter 5: Assessing share risk
      1. What do we mean by share risk?
      2. How do we assess share risk?
      3. Aggregating and applying share risk
      4. The outcomes of share risk assessment
    3. Chapter 6: Assessing profit risk
      1. Introduction
      2. Profit pool risk
      3. Profit sources risk
      4. Competitor impact risk
      5. Internal gross margin risk
      6. Other costs risk
      7. Summary
  13. Part 3: The Marketing Due Diligence Therapeutic Process
    1. Chapter 7: The key role of market definition and segmentation
      1. Introduction
      2. Correct market definition
      3. Market mapping
    2. Chapter 8: Creating strategies that create shareholder value
      1. Starting from where we are
      2. Understanding and managing market risk
      3. Understanding and managing share risk
      4. Understanding and managing profit risk
      5. Summary and conclusions
    3. Chapter 9: Managing high-risk marketing strategies
      1. Allowing for risk
      2. Risk equals volatility
      3. Controllable versus uncontrollable volatility
      4. Using real option analysis
      5. Summary
    4. Chapter 10: Fast track: A summary and reminder of the marketing and finance interface
      1. The lessons of experience
      2. A process of Marketing Due Diligence
      3. The implications of implementing Marketing Due Diligence
      4. Assessing market risk
      5. Assessing share risk
      6. Assessing profit risk
      7. The key role of market definition and segmentation
      8. Creating strategies that create shareholder value
      9. Managing high-risk marketing strategies
  14. Afterword: What to do now
  15. References and further reading
  16. Index

Product information

  • Title: Marketing and Finance: Creating Shareholder Value
  • Author(s): Malcolm McDonald, Brian Smith, Keith Ward
  • Release date: September 2013
  • Publisher(s): Wiley
  • ISBN: 9781119953388