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Differences in decision-making criteria towards the return on marketing investment: a project business perspective

This article encourages the use of return on marketing-specific investment (ROMI), paired with client lifetime value (CLV) and programme data sets, as a tool to facilitate dialogue between finance and marketing departments.It has been taken from the International Journal of Project Management.

The authors recommend that future research look more extensively into ROMI application and dialogue generation. They suggest that senior management will also need to play a broader role in encouraging dialogue between marketing and finance.

Keywords

  • Decision-making
  • Finance
  • Marketing
  • ROMI

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What does the paper cover? 

Marketing and finance are often treated in isolation, and decision-making at the interface between the two has been under-researched.

The article addresses this research gap by examining ROMI and return on investment (ROI) qualitatively and quantitatively.

This is done with a view to establishing whether they can improve dialogue between finance and marketing.

Three aspects of the finance−marketing interface are considered:

  • the market and shareholder value;
  • the level of the firm;
  • the interface dynamics.

The article’s literature review finds evidence backing a qualitative approach with a long-term focus for encouraging dialogue between marketing and finance, especially when combined with quantitative data on CLV and programme data sets.

Significance of the research:

The interface between marketing and finance is a relatively neglected topic. This article seeks to explore this under-researched area, and suggests further potential research directions that will help fill this knowledge gap. By doing so, better dialogue and decision-making between finance and marketing may be achieved.

It also examines the applicability of ROMI to project businesses at a deeper level than has been attempted previously.

 

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