Article Summary: “The Bottom Line: Marketing & Firm Performance” Essay

Leslie M. Fine, author of The Bottom Line Marketing & Firm Performance, analyzes how marketing relates to how well(p) the firm does overall. A majority of the member is focused on how guest congenators usurpation firm performance and can affect shareowner wealth. Firms improving customer impartiality and reducing the firms silver needs, will influence the net present value of the firm. Within youthful years, there has been an increase in the awareness that firms should be able to usher that marketing actions affect financial outcomes. Along with this awareness, marketers have realized that the investor is besides the customer, especially at the initial IPO, and leading companies to report customer equity statements and customer equity flow statements.The article notes various studies that have been conducted analyzing the intrusion of customer satisfaction in relation to areas such as the line of work value gap, performance of portfolios and the impact of marketing, rese arch and development and operations on firm performance. The studies concluded that doing whats chastise for the customer is doing whats right for the firm and shareholder value. Customer satisfaction has a significant impact on the stock value gap when compare to the top competitor, center the lesser the gap the higher the customer satisfaction ratings of the firm. In relation to portfolio performance, the study indicated that portfolios with firms that had high satisfaction scores produced compulsive trend portfolios. everywhere a 10-year period those positive trend portfolios yield better than others and more(prenominal) impressively better than the S&P 500.Through reading this article I began to see clearly the importance and relevance of marketing to the achiever of the firm. As shown by the research indicated in this article, firms should begin to place an supererogatory emphasis of the marketing function throughout the firm. I was particularly raise in the idea of hav ing a Chief Marketing Officer in the boardroom. The idea of having a voice for the customer in the boardroom is positive in all aspects. Firms with a CMO offer additional input if the closing of the firm is to pursue innovation, differentiation and complex branding initiatives. As seen in the articles for this week, innovation and differentiate can excel a firm greatly. Having a CMO will only offer an additional benefit to the firm.Fine as well as included a scratch on the Bond strategies effecting the firm, which analyzed that the perceive brand relevance and brand energy provide incremental entropy to explain stock returns other than the information explained by accounting measures. This section focuses on how mergers and acquisitions use this analysis to determine the value of the train firm. This was raise to me due to the focus of mergers and acquisitions being on the customer base of the manoeuvre firm. Typically, my first thought in relation to mergers and acquisition s would be to consider the commensurateness sheet and stock value of the firm as to how the particular target firm could be beneficial. After reading this article I would corresponding to know how much these studies have sparked firms to begin doing in-house research, as well as how many have began focusing on the customer as a driving factor to the shareholder value of the company and performance of the firm.