Sharan Jagpal
- Published in print:
- 2008
- Published Online:
- September 2008
- ISBN:
- 9780195371055
- eISBN:
- 9780199870745
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195371055.003.0002
- Subject:
- Business and Management, Marketing
This chapter introduces key financial tools necessary for measuring the long-run effects of marketing policy under uncertainty. It distinguishes the cases where the firm sells multiple products or ...
More
This chapter introduces key financial tools necessary for measuring the long-run effects of marketing policy under uncertainty. It distinguishes the cases where the firm sells multiple products or has multiple divisions. Specifically, it analyzes how the firm can evaluate the effects of strategic flexibility in decision making; in particular, it shows how the firm can use the real options methodology to measure and reward managers so that they focus on long-run performance.Less
This chapter introduces key financial tools necessary for measuring the long-run effects of marketing policy under uncertainty. It distinguishes the cases where the firm sells multiple products or has multiple divisions. Specifically, it analyzes how the firm can evaluate the effects of strategic flexibility in decision making; in particular, it shows how the firm can use the real options methodology to measure and reward managers so that they focus on long-run performance.
Sharan Jagpal
- Published in print:
- 2008
- Published Online:
- September 2008
- ISBN:
- 9780195371055
- eISBN:
- 9780199870745
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195371055.003.0022
- Subject:
- Business and Management, Marketing
This chapter shows how the firm can use marketing-finance fusion to evaluate mergers and acquisition strategies. It examines the potential gains from mergers, the history of mergers and acquisitions, ...
More
This chapter shows how the firm can use marketing-finance fusion to evaluate mergers and acquisition strategies. It examines the potential gains from mergers, the history of mergers and acquisitions, the effect of private equity firms and hedge funds on merger activity and merger performance, and the special problems posed by international mergers. In particular, it shows how buying and selling firms can objectively value brands by combining game theory and data from choice-based experiments.Less
This chapter shows how the firm can use marketing-finance fusion to evaluate mergers and acquisition strategies. It examines the potential gains from mergers, the history of mergers and acquisitions, the effect of private equity firms and hedge funds on merger activity and merger performance, and the special problems posed by international mergers. In particular, it shows how buying and selling firms can objectively value brands by combining game theory and data from choice-based experiments.
Sharan Jagpal
- Published in print:
- 2008
- Published Online:
- September 2008
- ISBN:
- 9780195371055
- eISBN:
- 9780199870745
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195371055.003.0023
- Subject:
- Business and Management, Marketing
This chapter shows how multinational firms can use marketing-finance fusion to choose international strategies. It discusses the pros and cons of international diversification to privately and ...
More
This chapter shows how multinational firms can use marketing-finance fusion to choose international strategies. It discusses the pros and cons of international diversification to privately and publicly held firms, whether or not the firm should choose country-specific product designs, how the firm should measure and reward the performances of its country managers, what type of organizational structure the firm should use, how the firm should choose an outsourcing strategy, and what performance metrics the firm should use to measure and reward managerial performance in its outsourcing centers.Less
This chapter shows how multinational firms can use marketing-finance fusion to choose international strategies. It discusses the pros and cons of international diversification to privately and publicly held firms, whether or not the firm should choose country-specific product designs, how the firm should measure and reward the performances of its country managers, what type of organizational structure the firm should use, how the firm should choose an outsourcing strategy, and what performance metrics the firm should use to measure and reward managerial performance in its outsourcing centers.
Sharan Jagpal
- Published in print:
- 2008
- Published Online:
- September 2008
- ISBN:
- 9780195371055
- eISBN:
- 9780199870745
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195371055.003.0021
- Subject:
- Business and Management, Marketing
This chapter examines how the Internet affects the firm's marketing policies. It shows how the firm should choose its marketing strategies including pricing (distinguishing between the B to B and B ...
More
This chapter examines how the Internet affects the firm's marketing policies. It shows how the firm should choose its marketing strategies including pricing (distinguishing between the B to B and B to C markets) and advertising messages. In addition, it shows how the firm should coordinate its Internet advertising and sales force policies, including redesigning its sales force compensation plans. It discusss the effects of ownership structure (whether the advertising firm is privately or publicly held) on the firm's Internet advertising strategy. In addition, it analyzes a number of structural changes brought about by Internet advertising, including the purchase of advertising space via auctions, behavioral targeting, and conquest advertising.Less
This chapter examines how the Internet affects the firm's marketing policies. It shows how the firm should choose its marketing strategies including pricing (distinguishing between the B to B and B to C markets) and advertising messages. In addition, it shows how the firm should coordinate its Internet advertising and sales force policies, including redesigning its sales force compensation plans. It discusss the effects of ownership structure (whether the advertising firm is privately or publicly held) on the firm's Internet advertising strategy. In addition, it analyzes a number of structural changes brought about by Internet advertising, including the purchase of advertising space via auctions, behavioral targeting, and conquest advertising.
Sharan Jagpal
- Published in print:
- 2008
- Published Online:
- September 2008
- ISBN:
- 9780195371055
- eISBN:
- 9780199870745
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195371055.003.0019
- Subject:
- Business and Management, Marketing
This chapter discusses the conditions under which brand equity can exist and whether brand equity implies charging high prices. It evaluates the use of standard metrics for measuring brand equity ...
More
This chapter discusses the conditions under which brand equity can exist and whether brand equity implies charging high prices. It evaluates the use of standard metrics for measuring brand equity (e.g., Tobin's q-ratio and the multiplier method). Following this, it proposes an integrated marketing-finance fusion method for measuring brand equity that combines behavioral and financial data and allows for competitive effects at different levels in the supply chain and for differential market growth rates.Less
This chapter discusses the conditions under which brand equity can exist and whether brand equity implies charging high prices. It evaluates the use of standard metrics for measuring brand equity (e.g., Tobin's q-ratio and the multiplier method). Following this, it proposes an integrated marketing-finance fusion method for measuring brand equity that combines behavioral and financial data and allows for competitive effects at different levels in the supply chain and for differential market growth rates.
Sharan Jagpal
- Published in print:
- 2008
- Published Online:
- September 2008
- ISBN:
- 9780195371055
- eISBN:
- 9780199870745
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195371055.003.0013
- Subject:
- Business and Management, Marketing
This chapter shows how the firm should coordinate its advertising decisions with the other elements of the marketing mix such as price and promotion, especially when demand is uncertain. It shows how ...
More
This chapter shows how the firm should coordinate its advertising decisions with the other elements of the marketing mix such as price and promotion, especially when demand is uncertain. It shows how the firm should vary its advertising spending over the product life cycle and the business cycle. In particular, it shows how marketing-finance fusion allows the firm to maximize its long-run performance under uncertainty.Less
This chapter shows how the firm should coordinate its advertising decisions with the other elements of the marketing mix such as price and promotion, especially when demand is uncertain. It shows how the firm should vary its advertising spending over the product life cycle and the business cycle. In particular, it shows how marketing-finance fusion allows the firm to maximize its long-run performance under uncertainty.
Sharan Jagpal
- Published in print:
- 2008
- Published Online:
- September 2008
- ISBN:
- 9780195371055
- eISBN:
- 9780199870745
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195371055.003.0001
- Subject:
- Business and Management, Marketing
This chapter introduces key financial tools necessary for understanding Fusion for Profit. This chapter shows how different ownership structures (i.e., whether the firm is publicly or privately held) ...
More
This chapter introduces key financial tools necessary for understanding Fusion for Profit. This chapter shows how different ownership structures (i.e., whether the firm is publicly or privately held) affect the firm's tradeoff between risk and return. It also distinguishes the cases where the firm sells multiple products or has multiple divisions; in particular, it shows how privately and publicly held firms should coordinate their marketing and financial decisions under uncertainty.Less
This chapter introduces key financial tools necessary for understanding Fusion for Profit. This chapter shows how different ownership structures (i.e., whether the firm is publicly or privately held) affect the firm's tradeoff between risk and return. It also distinguishes the cases where the firm sells multiple products or has multiple divisions; in particular, it shows how privately and publicly held firms should coordinate their marketing and financial decisions under uncertainty.
Sharan Jagpal
- Published in print:
- 2008
- Published Online:
- September 2008
- ISBN:
- 9780195371055
- eISBN:
- 9780199870745
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195371055.003.0011
- Subject:
- Business and Management, Marketing
This chapter compares different models of consumer behavior including standard economic theory and alternative behavioral theories such as prospect theory and assimilation-contrast theory. It shows ...
More
This chapter compares different models of consumer behavior including standard economic theory and alternative behavioral theories such as prospect theory and assimilation-contrast theory. It shows that these behavioral theories have important implications for marketing-finance fusion and human resource management. Specifically, they lead to different market implications for new product pricing, pricing over the business cycle, choosing optimal dividend policy, designing bonus plans, and choosing optimal Customer Relationship Management (CRM) strategies.Less
This chapter compares different models of consumer behavior including standard economic theory and alternative behavioral theories such as prospect theory and assimilation-contrast theory. It shows that these behavioral theories have important implications for marketing-finance fusion and human resource management. Specifically, they lead to different market implications for new product pricing, pricing over the business cycle, choosing optimal dividend policy, designing bonus plans, and choosing optimal Customer Relationship Management (CRM) strategies.
Jane W. D’arista and Stephany Griffith-Jones
- Published in print:
- 2001
- Published Online:
- October 2011
- ISBN:
- 9780198296867
- eISBN:
- 9780191685286
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198296867.003.0003
- Subject:
- Economics and Finance, Development, Growth, and Environmental, Macro- and Monetary Economics
In the advent of various developments in international financial markets, foreign portfolio investments have assumed an emerging role as a channel for international capital flows to a number of ...
More
In the advent of various developments in international financial markets, foreign portfolio investments have assumed an emerging role as a channel for international capital flows to a number of developing countries. While these countries experienced several challenges between 1979 to 1982 because of the recession, oil price increase, and the shift in US macroeconomic policy, the period between 1983 and 1989 entailed a decline in the net international capital flows received by developing countries because of the high levels of negative net transfers of resources from various countries in Latin America to banks. Since foreign direct investments were the only option of channeling in net capital flows for countries in the Western Hemisphere, such also became the case for developing countries in Asia. This chapter examines the implications of utilizing foreign portfolio investments in facilitating international capital flows specifically to developing countries.Less
In the advent of various developments in international financial markets, foreign portfolio investments have assumed an emerging role as a channel for international capital flows to a number of developing countries. While these countries experienced several challenges between 1979 to 1982 because of the recession, oil price increase, and the shift in US macroeconomic policy, the period between 1983 and 1989 entailed a decline in the net international capital flows received by developing countries because of the high levels of negative net transfers of resources from various countries in Latin America to banks. Since foreign direct investments were the only option of channeling in net capital flows for countries in the Western Hemisphere, such also became the case for developing countries in Asia. This chapter examines the implications of utilizing foreign portfolio investments in facilitating international capital flows specifically to developing countries.
Cornelia Woll
- Published in print:
- 2014
- Published Online:
- August 2016
- ISBN:
- 9780801452352
- eISBN:
- 9780801471155
- Item type:
- chapter
- Publisher:
- Cornell University Press
- DOI:
- 10.7591/cornell/9780801452352.003.0005
- Subject:
- Political Science, Political Economy
This chapter focuses on capital-market based finance in the United States and the United Kingdom. Contrary to what one would expect from liberal market economies with large capital markets, the U.S. ...
More
This chapter focuses on capital-market based finance in the United States and the United Kingdom. Contrary to what one would expect from liberal market economies with large capital markets, the U.S. and the U.K. governments were quite distinct in their attitudes toward the financial industry and the design of their bank support schemes. While the U.S. eventually imposed a mandatory capitalization of the major financial institutions, it did so at very favorable conditions. On the other hand, the U.K. imposed high prices and very stringent conditions on government aid and imposed sector solidarity only by encouraging healthy institutions to raise their capital by a token amount on the markets. In both countries, financial institutions also benefited from central bank intervention—particularly massive liquidity provision—but U.K. banks continuously complained that this aid could have been greater and more tailored to their needs.Less
This chapter focuses on capital-market based finance in the United States and the United Kingdom. Contrary to what one would expect from liberal market economies with large capital markets, the U.S. and the U.K. governments were quite distinct in their attitudes toward the financial industry and the design of their bank support schemes. While the U.S. eventually imposed a mandatory capitalization of the major financial institutions, it did so at very favorable conditions. On the other hand, the U.K. imposed high prices and very stringent conditions on government aid and imposed sector solidarity only by encouraging healthy institutions to raise their capital by a token amount on the markets. In both countries, financial institutions also benefited from central bank intervention—particularly massive liquidity provision—but U.K. banks continuously complained that this aid could have been greater and more tailored to their needs.
Adam D. Dixon
- Published in print:
- 2014
- Published Online:
- August 2014
- ISBN:
- 9780199668236
- eISBN:
- 9780191781957
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199668236.003.0004
- Subject:
- Business and Management, Finance, Accounting, and Banking, Political Economy
This chapter considers the treatment of institutions and institutional change in relation to finance, by contrasting the changing form and function of the German financial system and banking sector ...
More
This chapter considers the treatment of institutions and institutional change in relation to finance, by contrasting the changing form and function of the German financial system and banking sector with that of the United States since the beginning of the 1990s. It is shown that the financial systems of the two countries are increasingly similar in form; and where they continue to diverge in form, common functions produce analogous outcomes. This complicates the modeling and empirical verification of capitalist variety at the national macro-institutional level. Consequently, there is a need for a re-evaluation of how and whether finance can continue to complement other institutional spheres within countries and in country-specific ways.Less
This chapter considers the treatment of institutions and institutional change in relation to finance, by contrasting the changing form and function of the German financial system and banking sector with that of the United States since the beginning of the 1990s. It is shown that the financial systems of the two countries are increasingly similar in form; and where they continue to diverge in form, common functions produce analogous outcomes. This complicates the modeling and empirical verification of capitalist variety at the national macro-institutional level. Consequently, there is a need for a re-evaluation of how and whether finance can continue to complement other institutional spheres within countries and in country-specific ways.
Rodney Schwartz, Clare Jones, and Alex Nicholls
- Published in print:
- 2015
- Published Online:
- December 2015
- ISBN:
- 9780198703761
- eISBN:
- 9780191773013
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198703761.003.0016
- Subject:
- Business and Management, Innovation, Finance, Accounting, and Banking
This chapter explores the emerging infrastructure supporting the social finance market. It first establishes the wider background for the subsequent discussion by discussing in detail the basic ...
More
This chapter explores the emerging infrastructure supporting the social finance market. It first establishes the wider background for the subsequent discussion by discussing in detail the basic requirements for the flourishing of a social economy. Building on this, the chapter then goes on to identify and explore four key types of infrastructure that support the development of the social finance market: governmental, facilitative, intellectual, transactional. Each type of infrastructure is explored in detail and its position in the social finance ecosystem analysed. The chapter includes a range of international case examples to illustrate its analysis. Conclusions sum up the key contributions of this chapter.Less
This chapter explores the emerging infrastructure supporting the social finance market. It first establishes the wider background for the subsequent discussion by discussing in detail the basic requirements for the flourishing of a social economy. Building on this, the chapter then goes on to identify and explore four key types of infrastructure that support the development of the social finance market: governmental, facilitative, intellectual, transactional. Each type of infrastructure is explored in detail and its position in the social finance ecosystem analysed. The chapter includes a range of international case examples to illustrate its analysis. Conclusions sum up the key contributions of this chapter.
Paola Bongini, Annalisa Ferrando, Emanuele Rossi, and Monica Rossolini
- Published in print:
- 2018
- Published Online:
- January 2018
- ISBN:
- 9780198815815
- eISBN:
- 9780191853418
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/oso/9780198815815.003.0013
- Subject:
- Economics and Finance, Financial Economics
Firms’ access to capital markets among Eurozone countries is a challenging issue for the EU Capital Markets Union (CMU) agenda. We contribute to the current debate on the CMU by identifying the ...
More
Firms’ access to capital markets among Eurozone countries is a challenging issue for the EU Capital Markets Union (CMU) agenda. We contribute to the current debate on the CMU by identifying the characteristics of firms that can be deemed ‘suitable’ for market-based finance. Using survey-based research, we show which firm-specific attributes and country-specific features foster a firm’s likelihood of accessing non-bank sources of finance. Our results reveal that a few Eurozone countries appear to have achieved high access to capital market financing, but there is substantial unexploited potential among firms fit for market-based finance. Our research also indicates that the macro business environment and conditions—such as GDP growth, the degree of development of domestic financial markets, and the quality of the legal and judicial enforcement system—significantly impact firms’ market suitability. Our results therefore can be linked to a number of goals of the CMU Action Plan.Less
Firms’ access to capital markets among Eurozone countries is a challenging issue for the EU Capital Markets Union (CMU) agenda. We contribute to the current debate on the CMU by identifying the characteristics of firms that can be deemed ‘suitable’ for market-based finance. Using survey-based research, we show which firm-specific attributes and country-specific features foster a firm’s likelihood of accessing non-bank sources of finance. Our results reveal that a few Eurozone countries appear to have achieved high access to capital market financing, but there is substantial unexploited potential among firms fit for market-based finance. Our research also indicates that the macro business environment and conditions—such as GDP growth, the degree of development of domestic financial markets, and the quality of the legal and judicial enforcement system—significantly impact firms’ market suitability. Our results therefore can be linked to a number of goals of the CMU Action Plan.
Colin Mayer
- Published in print:
- 1994
- Published Online:
- January 2015
- ISBN:
- 9780198287889
- eISBN:
- 9780191828867
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198287889.003.0011
- Subject:
- Economics and Finance, Financial Economics
This chapter concentrates on the financing and control activities of stock-markets. It argues that there are a number of puzzles surrounding the operation of stock-markets — from the fact that it ...
More
This chapter concentrates on the financing and control activities of stock-markets. It argues that there are a number of puzzles surrounding the operation of stock-markets — from the fact that it provides little finance for the industry to how it relates to corporate governance. These puzzles do not often figure in the conventional description of stock-markets as mechanisms for providing risk capital and correcting managerial failure. Moreover, these functions can be performed in a variety of ways and it is questionable whether stock-markets are the best at doing them. The chapter thus argues that UK style stock-markets perform a different function: they provide a market in property rights which allows control to be readily transferred to those who attach the highest value to it.Less
This chapter concentrates on the financing and control activities of stock-markets. It argues that there are a number of puzzles surrounding the operation of stock-markets — from the fact that it provides little finance for the industry to how it relates to corporate governance. These puzzles do not often figure in the conventional description of stock-markets as mechanisms for providing risk capital and correcting managerial failure. Moreover, these functions can be performed in a variety of ways and it is questionable whether stock-markets are the best at doing them. The chapter thus argues that UK style stock-markets perform a different function: they provide a market in property rights which allows control to be readily transferred to those who attach the highest value to it.
Jim Paul and Brendan Moynihan
- Published in print:
- 2013
- Published Online:
- November 2015
- ISBN:
- 9780231164689
- eISBN:
- 9780231535236
- Item type:
- book
- Publisher:
- Columbia University Press
- DOI:
- 10.7312/columbia/9780231164689.001.0001
- Subject:
- Business and Management, Finance, Accounting, and Banking
The author's meteoric rise took him from a small town in Northern Kentucky to governor of the Chicago Mercantile Exchange, yet he lost it all—his fortune, his reputation, and his job—in one fatal ...
More
The author's meteoric rise took him from a small town in Northern Kentucky to governor of the Chicago Mercantile Exchange, yet he lost it all—his fortune, his reputation, and his job—in one fatal attack of excessive economic hubris. This honest, frank analysis revisits the events that led to the author's disastrous decision and examines the psychological factors behind bad financial practices in several economic sectors. The book begins with the unbroken string of successes that helped the author achieve a jet-setting lifestyle and land a key spot with the Chicago Mercantile Exchange. It then describes the circumstances leading up to his $1.6 million loss and the essential lessons he learned from it—primarily that, although there are as many ways to make money in the markets as there are people participating in them, all losses come from the same few sources. Investors lose money in the markets either because of errors in their analysis or because of psychological barriers preventing the application of analysis. While all analytical methods have some validity and make allowances for instances in which they do not work, psychological factors can keep an investor in a losing position, causing him to abandon one method for another in order to rationalize the decisions already made. This cautionary tale includes strategies for avoiding loss tied to a simple framework for understanding, accepting, and dodging the dangers of investing, trading, and speculating.Less
The author's meteoric rise took him from a small town in Northern Kentucky to governor of the Chicago Mercantile Exchange, yet he lost it all—his fortune, his reputation, and his job—in one fatal attack of excessive economic hubris. This honest, frank analysis revisits the events that led to the author's disastrous decision and examines the psychological factors behind bad financial practices in several economic sectors. The book begins with the unbroken string of successes that helped the author achieve a jet-setting lifestyle and land a key spot with the Chicago Mercantile Exchange. It then describes the circumstances leading up to his $1.6 million loss and the essential lessons he learned from it—primarily that, although there are as many ways to make money in the markets as there are people participating in them, all losses come from the same few sources. Investors lose money in the markets either because of errors in their analysis or because of psychological barriers preventing the application of analysis. While all analytical methods have some validity and make allowances for instances in which they do not work, psychological factors can keep an investor in a losing position, causing him to abandon one method for another in order to rationalize the decisions already made. This cautionary tale includes strategies for avoiding loss tied to a simple framework for understanding, accepting, and dodging the dangers of investing, trading, and speculating.