Fischer, M., Shin, H., & Hanssens, D. (2018). Marketing Spending and Brand Performance Volatility. GfK Marketing Intelligence Review, 10(1), 46-51
Marketing Spending and Brand Performance Volatility
Marc Fischer, Hyun Shin and Dominique M. Hanssens
If company revenues fluctuate, the resulting volatility makes it more difficult to project the company’s future revenues and earnings and ensure steady cash-flow. This lessens investor confidence and, as such, can harm the financial health of a brand. So, effective marketing can have undesired financial side effects.
The optimal marketing behaviors derived with and without volatility calculations will be quite different. Analytically savvy companies will be able to gain competitive advantage from this realization.
Other articles of the MIR issue “Brand Risk Matters”
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