Marketing is the primary driver of shareholder value yet few companies, and in particular few of their marketers, embrace the disciplines which are needed to drive shareholder value effectively.
PA Consulting Group has developed a new approach to value-based marketing that focuses marketing on the creation of long-term shareholder value – and specifically focuses on how CEOs and senior marketers can make clear connections between marketing activities and business economics.
Marketing for Shareholder Value helps companies create more value for customers and shareholders, by understanding where value is actually created and destroyed in their markets and portfolios. It also shows how to get the best return on marketing investments and assets, in both the short and longer-term. Findings from PA’s current research indicates that marketing typically delivers more value than anything else a CEO can focus on – prompting business leaders to focus on marketing as an investment rather than a cost – more information on these new findings can be obtained from PA here.
Companies such as Cadbury Schweppes and Diageo have already demonstrated the significant benefits of this disciplined yet creative approach, and the benefits it offers to customers and marketers, as well as shareholders. PA has recently worked in this area with companies ranging from BT to Group 4 Falck, Evian to Mastercard.
PA's approach combines rigor and innovation, focusing on a company's best opportunities in the market. It challenges the practical choices marketers must make about areas such as communications, distribution and pricing. The benefits are therefore immediate as well as long-term.
