Advanced Marketing – Essay Example
Advanced Marketing Peter Doyle’s theory s that marketing will not mature as a profession until such a time that it can demonstrate the impact ofmarketing on shareholder value. The theory provides that the satisfaction of the shareholder must be the central guiding principle for the company’s marketing strategies. This is due to the fact that the shareholder is the real owner of the company and benefits of marketing should trickle down to the shareholder, according to Keller and Kotler (2009). Planning for marketing strategies therefore should bear in mind that the needs of the shareholder, or the owner, are taken care of.
Shareholder value can be defined to mean the extent to which the company’s objective achievement and profitability satisfy and benefit the shareholder. It can refer to the mobilization of the company’s capital into the ownership by shareholders. The operation of the company’s business in terms of shares determines the value of the company’s share. The value of the company is determined by its market capitalization, which represents the engagement between the company and the shareholders.
From the shareholder’s value point of view, it is openly evident that the key role player to the sustainability of the company’s operation is the shareholder. Strategic marketing is a vital activity by the company’s management aiming at ensuring that revenues are maximized to sustain business. Confidence of the owners is important since they look for profitable ventures to invest their money in. the management must identify and clearly define the company’s value drivers. Value drivers assist in determining how much more effort is needed in marketing as well as profit maximization. Sales in the company translate proportionately to the revenue earned, which makes it the most important determinant in shareholder satisfaction.
Keller K. L. & Kotler P., (2009). Marketing Management, 13th Edition, Upper Saddle River, NJ, Pearson- Prentise Hall