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How does financial performance affect marketing? Studying the marketing-finance relationship from a dynamic perspective

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Abstract

In this article, the authors provide a dynamic framework for understanding the relationship between marketing and financial performance. They suggest that firms market to financial markets as well as to consumption markets and that some mixture provides superior long-term performance. The authors discuss the potential pitfalls of overemphasizing one market to the detriment of another and then provide a theoretical model of the factors that influence the extent of marketing to financial markets. This is followed by a discussion of implications for theory, practice, and future research.

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Authors and Affiliations

  1. Duke University, Durham, USA

    Mitchell J. Lovett

  2. Boise State University, Boise, USA

    Jason B. MacDonald

Authors
  1. Mitchell J. Lovett
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  2. Jason B. MacDonald
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Additional information

Mitchell J. Lovett (mitchell.lovett@duke.edu) is a Ph.D. student in the Fuqua School of Business at Duke University. His current research interests include consumer and seller learning in dynamic environments, competitive and dynamic marketing strategies, and the role of marketing in innovation.

Jason B. MacDonald (jmacdona@boisestate.edu) is an associate professor of marketing in the College of Business and Economics at Boise State University. His current research interests include the role of marketing in investor relations and Internet marketing strategy.

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Lovett, M.J., MacDonald, J.B. How does financial performance affect marketing? Studying the marketing-finance relationship from a dynamic perspective. JAMS 33, 476–485 (2005). https://doi.org/10.1177/0092070305277382

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