ABSTRACT
In this chapter, the authors develop a conceptual framework of the marketing – finance interface and discuss its implications for the theory and practice of marketing. The framework proposes that marketing is concerned with the task of developing and managing market-based assets, or assets that arise from the commingling of the firm with entities in its external environment. As the new marketing assumptions emerge, the question is not whether marketing activities are useful and valuable but why marketing has played such a limited role in the process of strategy formulation. Market-based assets are principally of two related types: relational and intellectual. There are several interrelated research streams in the marketing literature that contribute to the concept of market-based assets: brand equity, customer satisfaction, and the management of strategic relationships. Market-based assets can enhance shareholder value by enabling the firm to accelerate the receipt of cash flows or generating cash flows sooner than otherwise.
