Column 18 · Marketing-Finance and Performance · Era 4, Orientation and Relationships (1990s)
Market-Based Assets
Inputs: resources and assets · Landmark · Cluster VII, Outcomes
Description
They proposed that relational and intellectual market-based assets create shareholder value by accelerating and enhancing cash flows, reducing their volatility and vulnerability, and increasing their residual value, linking marketing to finance.
Managerial Implications
Customer relationships, channel relationships, and brands are assets that generate shareholder value by accelerating cash flows, enhancing them, reducing their volatility, and extending their life. Make the link explicit: show finance how marketing investments change the timing, size, and risk of cash flows. This vocabulary earns marketing a seat in capital allocation and turns brand and customer programs into investments with measurable returns.