Linking Marketing Outcomes to Financial Performance
This chapter focuses on the linkages between intermediate marketing outcomes and financial performance. Linking marketing activities and expenditures to cash flow requires three things: (1) the story of how marketing activities and expenditures influence sales or margins; (2) a baseline that indicates what sales would be without marketing activity and expenditures; and (3) a set of intermediate outcome measures that are reliable predictors or antecedents of financial results. This chapter examines these three elements of the marketing/finance linkage.
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