Abstract
This commentary complements the Hunt (2015) essay and identifies the challenges that the R-A theory poses with its emphasis on superior financial performance as a firm’s primary and superordinate objective. It points to the need for new marketing strategy theory with a broader perspective of including other stakeholders beyond investors while designing firm objectives. In addition, the commentary points to short-termism as an inevitable consequence of focusing on financial performance. It thus calls for new marketing strategy theory that includes intermediate objectives based on customer mindset metrics that reflect intangible marketing assets.
Similar content being viewed by others
References
Aaker, D. A. (1991). Managing brand equity: capitalizing on the value of a brand name. New York: The Free Press.
Alderson, W. (1957). Marketing behavior and executive action. Homewood, IL: Richard D. Irwin, Inc.
Alderson, W. (1965). Dynamic marketing behavior. Homewood, IL: Richard D. Irwin, Inc.
Becker-Olsen, K., Andrew Cudmore, B., & Hill, R. P. (2006). The impact of perceived corporate social responsibility on consumer behavior. Journal of Business Research, 59, 46–53.
Bharadwaj, S., Bharadwaj, A., & Bendoly, E. (2007). The performance effects of complementarities between information systems, marketing, manufacturing, and supply chain processes. Information Systems Research, 18(4), 437–453.
Bhattacharya, C. B., Sen, S., & Korschun, D. (2008). Using corporate social responsibility to win the war for talent. MIT Sloan Management Review, 49(2), 39–44.
Carroll, A. B. (1979). A three-dimensional conceptual model of corporate performance. The Academy of Management Review, 4, 497–505.
Chakravarty, A., & Grewal, R. (2011). The stock market in the driver's seat! implications for r&d and marketing. Management Science, 57(9), 1594–1609.
Chapman, C. J., & Steenburgh, T. J. (2011). An investigation of earnings management through marketing actions. Management Science, 57(1), 72–92.
Day, G. S. (2011). Closing the marketing capabilities gap. Journal of Marketing,75(4), 183–195.
Du, S., Bhattacharya, C. B., & Sen, S. (2007). Reaping relational rewards from corporate social responsibility: the role of competitive positioning. International Journal of Research in Marketing, 24, 224–41.
Dutta, S., Narasimhan, O., & Rajiv, S. (1999). Success in high-technology markets: is marketing capability critical? Marketing Science, 18(4), 547–568.
Emerson, J. (2003). The blended value proposition: integrating social and financial return. California Management Review, 45(4), 35–51.
Ernst, H., Hoyer, W., & Rübsaamen, C. (2010). Sales, marketing, and research-and-development cooperation across new product development stages: implications for success. Journal of Marketing, 74(5), 80–92.
Graham, J. R., Harvey, C. R., & Rajgopal, S. (2005). The economic implications of corporate financial reporting. Journal of Accounting and Economics, 40(1), 3–73.
Gunny, K. A. (2010). The Relation Between Earnings Management Using Real Activities Manipulation and Future Performance: evidence from Meeting Earnings Benchmarks*. Contemporary Accounting Research, 27(3), 855–888.
Haanaes, K., Balagopal, B., Kong, M. T., Velken, I., Arthur, D., Hopkins M. S., & Kruschwitz, N. (2011). New sustainability study: the ‘Embracers’ Seize Advantage. MIT Sloan Management Review, Research Report
Homburg, C., & Jensen, O. (2007). The thought worlds of marketing and sales: which differences make a difference? Journal of Marketing, 71(3), 124–142.
Hunt, S. D. (2015). The theoretical foundations of strategic marketing and marketing strategy: foundational premises, R-A theory, three fundamental strategies, and societal welfare. AMS Review, 5(3--4). doi:10.1007/s13162-015-0069-5.
Kim, H. R., Lee, M., Lee, H. T., & Kim, N. M. (2010). Corporate social responsibility and employee–company identification. Journal of Business Ethics, 95(4), 557–69.
Kotler, P. (2011). Reinventing marketing to manage the environmental imperative. Journal of Marketing, 75(4), 132–135.
Markovitch, D., & Golder, P. (2008). Using stock prices to predict market events: evidence on sales takeoff and long-term survival. Marketing Science, 27, 717–29.
Mizik, N. (2010). The theory and practice of myopic management. Journal of Marketing Research, 47(4), 594–611.
Moorman, C., & Slotegraaf, R. (1999). The contingency value of complementary capabilities in product development. Journal of Marketing Research, 36, 239–57.
Moorman, C., Weis, S., Mizik, N., & Spencer, F. (2012). Firm innovation and the rachet effect among consumer packaged goods firms. Marketing Science, 31(6), 934–951.
Piketty, T. (2014). Capital in the 21st century. Cambridge: Harvard University Press.
Porter, M. E., & Kramer, M. R. (2011). Creating shared value. Harvard Business Review, 84, 2–17.
Smith, C. N., Drumwright, M. E., & Gentile, M. (2010). The new marketing myopia. Journal of Public Policy & Marketing, 29, 4–11.
Srinivasan, S., & Hanssens, D. M. (2009). Marketing and firm value: Metrics, methods, findings, and future directions. Journal of Marketing research, 46(3), 293–312.
Srivastava, R. K., Shervani, T. A. & Fahey, L. (1998). Market-based assets and shareholder value: a framework for analysis. Journal of Marketing, 2–18.
Srivastava, R. K., Shervani, T. A. & Fahey, L. (1999). Marketing, business processes, and shareholder value: an organizationally embedded view of marketing activities and the discipline of marketing. Journal of Marketing, 168–179.
Trudel, R., & Cotte, J. (2009). Does it pay to be good? MIT Sloan Management Review, 50(Winter), 61–68.
Turban, D. B., & Greening, D. W. (1997). Corporate social performance and organizational attractiveness to prospective employees. The Academy of Management Journal, 40, 658–72.
Varadarajan, R. (2010). Strategic marketing and marketing strategy: domain, definition, fundamental issues and foundational premises. Journal of the Academy of Marketing Science, 38(2), 119–140.
Vila, O. R. & Bharadwaj, S. (2015). Constitutents-based marketing: an emerging capability to drive business performance. Working Paper.
Waddock, S. A., & Graves, S. B. (1997). The corporate social performance-financial performance link. Strategic Management Journal, 18, 303–19.
Wartick, S. L., & Cochran, P. L. (1985). The evolution of the corporate social performance model. The Academy of Management Review, 10, 758–769.
Wies, S. & Moorman, C. (2015). Going public: how stock market listing changes firm innovation behavior. Journal of Marketing Research, forthcoming
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
About this article
Cite this article
Bharadwaj, S. Developing new marketing strategy theory: addressing the limitations of a singular focus on firm financial performance. AMS Rev 5, 98–102 (2015). https://doi.org/10.1007/s13162-015-0072-x
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s13162-015-0072-x