Marketing and Finance - Creating Shareholder Value

Informationen zum Autor Professor Malcolm McDonald was recently cited as one of the top marketing gurus in the world, along with Philip Kotler and Michael Porter and, in a 2006 Times HE piece, he was named as one of the top ten consultants in the UK. He is now Emeritus Professor at Cranfield University School of Management where, until recently, he was Professor of Marketing and Deputy Director. Formerly Marketing Director of Canada Dry, he is Chairman of six companies and works with many of the operating boards of the world's biggest multinationals on every continent. He is the author of over 40 books, many of which have been translated into several foreign languages and has published hundreds of articles and papers. Malcolm continues to research and teach at Cranfield and other universities around the world, in addition to speaking engagements, visiting lectures, and consultancy work. Professor Brian D. Smith is a world-recognised expert on competitive strategy in pharmaceutical and medical markets. He is Adjunct Professor at Bocconi SDA and Visiting Research Fellow at the Open University Business School, where his research interests include strategy making and implementation in medical markets. He is the editor of the Journal of Medical Marketing and the author of over 200 books, papers and articles in the field of marketing and competitive strategy. He also runs Pragmedic, a specialist strategy consultancy and works with many of the world's leading pharma and medtech companies. Brian has over 30 years experience in medical technology and pharmaceutical markets in both R&D and commercial roles. He has been a member of the Chartered Institute of Marketing for over 20 years and is a former International Vice Chair of the Board of Trustees. He currently serves on the committees of two CIM groups, The Levitt Group and the Medical Marketing Group. Keith Ward studied economics at Cambridge and then qualified as both a chartered accountant and a chartered management accountant. He worked both in the City and abroad as a consultant and held senior management positions in manufacturing and trading companies (the last being as group financial director of Sterling International). In 1981 Keith joined Cranfield School of Management, where he progressed to become Professor of Financial Strategy, as well as being Head of the Finance and Accounting Group and Director of the Research Centre in Competitive Performance. In addition to his academic work, he developed his own international consultancy practice. He then moved to a Visiting Professorial role at the School, while continuing with his research and consultancy interests, until retiring at the end of 2009. He is the author of a number of books including Marketing Finance . He has also published numerous papers and articles, and contributed to several other books, including as editor. Klappentext The truest sign that an executive has reached, or is on a trajectory towards a senior position is when they start to look outside of their own functional silo and consider business issues that normally lie within the remit of other departments. Nowhere is this more true than at the marketing/finance interface. At this mission-critical boundary, senior marketers must understand the implications of their strategies not just for sales or profit, but on risk adjusted rate of return. Similarly, senior finance executive can no longer manage the numbers; they must make critical assessments of commercial goals and understand how alternative marketing strategies may create or destroy shareholder value.The Marketing and Finance Solution is the first book of its kind to address this interface, not from a marketing or finance angle, but from a combined perspective that incorporates leading knowledge in both disciplines. Written by three leading academics with decades of experience working across this functional bou...

List of contents

Foreword by Anne Godfrey, Chief Executive, CIM xi
 
Foreword by Charles Tilley, Chief Executive, CIMA xiii
 
Foreword from the First Edition by Sir Michael Perry, GBE xv
 
A note for busy people: How to get the best out of this book xix
 
List of figures xxi
 
List of tables xxv
 
Part 1 What is Marketing Due Diligence? 1
 
Chapter 1 The lessons of experience 3
 
Fast track 3
 
Introduction 3
 
Success stories 5
 
Starbucks: A holistic offer based on insight and culture 5
 
The Economist: Side stepping in time to the future 6
 
Yamazaki Mazak: Matching itself to the market 7
 
Essilor: Growing the pie 8
 
Failure stories 9
 
Blockbuster: Left behind 9
 
Gateway: Playing a zero-sum game 10
 
Microsoft's Zune: So what's better? 11
 
Nortel: Playing the wrong game 12
 
Woolworth's: Failure to focus 13
 
Seeing a pattern 14
 
Financial smoke and mirrors 14
 
Share and share alike 16
 
Marketing accountability 16
 
A new approach 18
 
Chapter 2 A process of Marketing Due Diligence 21
 
Fast track 21
 
What is marketing? 22
 
What is the connection between marketing and shareholder value? 23
 
What is the Marketing Due Diligence diagnostic process? 25
 
Explicating the strategy 27
 
Assessing the risks 29
 
Assessing shareholder value creation 34
 
What is the Marketing Due Diligence therapeutic process? 39
 
Implications of the Marketing Due Diligence process 41
 
Chapter 3 The implications of implementing Marketing Due Diligence 43
 
Fast track 43
 
The linkage to shareholder value 44
 
The risk and return relationship 45
 
A focus on absolute returns rather than risk 48
 
Using probability estimates to adjust for risk 51
 
Alignment with capital markets 56
 
Turning Marketing Due Diligence into a financial value 57
 
Adjusting marketing planning outcomes 57
 
Placing the adjusted fi nancial return into context 58
 
Allowing for 'capital at risk' 60
 
Highlighting deficiencies and key risks 62
 
Implications for users 63
 
Part 2 The Marketing Due Diligence Diagnostic Process 65
 
Chapter 4 Assessing market risk 67
 
Fast track 67
 
Some important background to what constitutes 'success' 68
 
Short-term success 68
 
Strategy and tactics 70
 
The strategic marketing plan 71
 
Market risk 71
 
The meaning of 'product' and 'market' 72
 
Combining product and market 77
 
Product/market growth or decline 78
 
Product and market combined 82
 
Market risk assessment 86
 
Conclusion 93
 
Chapter 5 Assessing share risk 97
 
Fast track 97
 
What do we mean by share risk? 98
 
How do we assess share risk? 100
 
Assessing target market risk 101
 
Assessing proposition risk 103
 
Assessing SWOT risk 106
 
Assessing uniqueness risk 108
 
Assessing future risk 110
 
Assessing other sources of share risk 113
 
Aggregating and applying share risk 116
 
Step 1: Explicate the marketing strategy 117
 
Step 2: Assess the explicated strategy against the sub-components of share risk 117
 
Step 3: Aggregate the sub-components into an overall assessment of share risk 119
 
Step 4: Identify the growth component of the strategy 120
 
Step 5: Moderate the growth component of the strategy to allow for risk 121
&nbs

Product details

• Authors: M McDonald, Malcol McDonald, Malcolm McDonald, Malcolm (Cranfield School of Management) McDonald, Malcolm Smith Mcdonald, Bria Smith, Brian Smith, Brian D Smith, Brian D. Smith, Brian D. (PragMedic) Smith, Smith Brian D., Keith Ward, Keith (Cambridge) Ward
• Publisher: Wiley, John and Sons Ltd
• Languages: English
• Product format: Paperback / Softback
• Released: 23.08.2013
• EAN: 9781119953388
• ISBN: 978-1-119-95338-8
• No. of pages: 288
• Series: Butterworth-Heinemann
• Subjects: Social sciences, law, business > Business > Advertising, marketing; Marketing management, strategisches marketing, Business & management, Wirtschaft u. Management, Strategic Marketing, Marketing / Management