Marketing's Financial Impact: Knowledge, Skills, and Channel Dynamics
(A2024-118938)

AUTHORS

Christian Schulze, Frankfurt School of Finance & Management; Paul Hilfrich, Goethe University Frankfurt; André Tomano, Department of Finance at the School of Business and Economics at Maastricht University; Alexander Edeling, KU Leuven

ABSTRACT

This special session investigates "Marketing's Financial Impact," focusing on the roles of firms’ marketing capabilities and channel management decisions. Leading the session is “What is the Value of Marketing Knowledge in Organizations?” by Christine Moorman, Simone Wies, and Paul Hilfrich. This paper provides a foundational understanding of the strategic value and financial implications of marketing knowledge within firms. It contributes by offering the first non-survey measure of the value of a firm’s marketing knowledge The empirical study is set in the context of the pharmaceutical industry. The paper offers insights into how the intangible asset of marketing knowledge can drive significant financial success, setting the tone for the importance of internal knowledge management in marketing. Following this, “Marketing Your Share: The Impact of Marketing Capabilities on Investor Relations” by André Tomano, Thomas Post, Niels Holtrop, and Joost Pennings builds upon the theme of internal capabilities. It delves into how marketing skills directly influence investor relations and, consequently, financial metrics. This research illustrates the crucial role of marketing capabilities not just in consumer outreach but in shaping investor perceptions and enhancing firm valuation, thus highlighting the symbiotic relationship between marketing and financial performance. The third paper, “Trick or Treat? The Stock Market Impact of Fake Reviews” by Philip Pollmann-Fervers, Marc Fischer, Alexander Edeling, and Thomas Scholdra, shifts the focus to the external challenges of digital marketing. By examining the financial consequences of deceptive practices like fake reviews on Amazon, the study provides a critical analysis of the ethical and strategic complexities in online retail channels, showing how these factors can unexpectedly influence stock market performance. Concluding the session, “Online Brand Shops” by Christian Schulze addresses the strategic decisions involved in brands’ establishment of a direct-to-consumer retail presence. It provides an empirical perspective on how these strategic choices impact consumer behavior and reshape competitive dynamics vis-à-vis online retailers, underscoring the importance of strategic channel management in the digital age. Collectively, these four papers investigate the multifaceted ways in which marketing capabilities and decisions not only shape consumer and investor perceptions but also drive significant financial outcomes.