Transcript Prof. Dr. Ir. Joost M.E. Pennings - Marketing

The Marketing-Finance Conference:
The Whole is Greater than the
Sum of its Parts
Joost M.E. Pennings
Professor of Marketing
ALEX Beleggersbank Professor in
Finance
Table of contents
1. Marketing develops interest in Finance
2. Finance develops interest in Marketing
3. Overview of Program
4. Change in Program
Faculty of Economics and Business Administration
Marketing develops interest in Finance
• Can Marketing Regain Its Seat at the Table
(Webster, Malter & Ganesan; Leeflang & Verhoef)?
– Marketing gets no respect in the boardroom (Schultz)
• How can marketing continue to be relevant as a
discipline?
– Focus has been on “intermediate” variables
Faculty of Economics and Business Administration
Marketing develops interest in Finance
• How can marketing activities translate in financial
performance?
– Impact on cash flows
Faculty of Economics and Business Administration
Marketing develops interest in Finance
• Dimensions of cash flow
– Expected cash flows
– Volatility in cash flows
• risk-adjusted cost capital
• Net cash flows determined by relationships
amongst all (negative/positive) cash flow drivers
Marketing activities are THE cash flow drivers
Faculty of Economics and Business Administration
Marketing develops interest in Finance
Questions of marketing managers:
1. How can marketers contribute to shareholder value?
1. Do marketers need help from a third party?
2. How does focus on shareholder value impact the
relationship with customers and suppliers?
3. Do suppliers and customers need the same focus on
shareholder value / same risk profile to establish
long term relationships?
Faculty of Economics and Business Administration
Finance develops interest in Marketing
• Marketers interact with the client
– Marketing is closest to the dollar
• Decision making processes drive (financial)
markets and financial performance
– Hard numbers tell only part of the story
– Chicago man may have feelings too
Faculty of Economics and Business Administration
Finance develops interest in Marketing
• Market anomalies
– Why? Market efficient paradigm?
• How do market participants behave?
– Role of market micro structure (market institution)
• Impact on market behavior (aggregate level)
• Why do financial product fail or succeed?
Faculty of Economics and Business Administration
Finance develops interest in Marketing
• Market research methodology
– Measurement issues
– Choice models that include constructs
• Latent variables
– Heterogeneity in behavior of market participants
Faculty of Economics and Business Administration
Overview of Program
• Marketing reaches out to Finance and vice versa
– Professors De Ruyter & Eichholtz
• MF approach from Marketing & Finance perspective
– Professors Srivastava & Weber
• MF Approach in Industry: How?
– Dr. Algra
• MF Approach in Academic programs
– Dr. Hoffmann
Faculty of Economics and Business Administration
Change in Program
• Presentation by Fortis is cancelled:
– 09.45-10.15
Prof. De Ruyter
– 10.15-10.45
Prof. Eichholtz
– 10.45-11.15
Coffee Break
– 11.15-12.00
Prof. Srivastava
– 12.00-13.15
Lunch
Faculty of Economics and Business Administration