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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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.