Smyth, H;
Lecoeuvre, L;
(2015)
Differences in decision-making criteria towards the return on marketing investment: A project business perspective.
International Journal of Project Management
, 33
(1)
29 - 40.
10.1016/j.ijproman.2014.03.005.
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Abstract
Assessing the value of marketing to a business remains a thorny issue in theory and practice. Decision-making at the finance–marketing interface is under-researched, particularly for project businesses. Confronted by demands of accountability concerning the allocation of resources to meet competitive pressures, the paper examines the quality and extent of dialogue in investment decision-making. The return on investment (ROI) and marketing-specific investment (ROMI) are important factors at the marketing–finance interface. ROMI/ROI is examined from quantitative and qualitative viewpoints. The empirical evidence shows that short-term financial criteria dominate and are misaligned to long-term performance of project businesses and business units. Marketing investment in relation to project markets poses a particularly challenging environment. Client lifetime value and programme data sets for ROMI coupled with qualitative decision-making offer ways forward with constructive dialogue at the finance–marketing interface. The paper concludes with detailed recommendations for research and practice.
| Type: | Article |
|---|---|
| Title: | Differences in decision-making criteria towards the return on marketing investment: A project business perspective |
| Open access status: | An open access version is available from UCL Discovery |
| DOI: | 10.1016/j.ijproman.2014.03.005 |
| Publisher version: | http://dx.doi.org/10.1016/j.ijproman.2014.03.005 |
| Language: | English |
| Additional information: | © Elsevier 2015. This manuscript version is made available under the CC-BY-NC-ND 4.0 license http://creativecommons.org/licenses/by-nc-nd/4.0/. Access may be initially be restricted by the publisher. |
| Keywords: | Decision-making, Dialogue, Finance, Marketing, ROMI, Performance |
| UCL classification: | UCL UCL > Provost and Vice Provost Offices UCL > Provost and Vice Provost Offices > UCL BEAMS UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of the Built Environment UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of the Built Environment > The Bartlett Sch of Const and Proj Mgt |
| URI: | https://discovery.ucl.ac.uk/id/eprint/1453906 |
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