Marketing Expenditures as Capital Investment

Abstract

Highlights marketing strategy and how capital investment decisions are characterized by large sums of money involved. Explores obstacles and opportunities involved in making headway in the treatment of marketing expenditure as investment. Specifies a framework to: measure the productivity of capital which might be employed; take into account that money has a time value ‐ near money is worth more than the same amount at some time further into the future; provide minimum standards for investments to achieve; provide a means of rationing capital between project which might compete in their claims for it. Covers promotion and effects of advertising and the use of planning ahead. Concludes that future research may provide detailed generalization as to the timing of future cash flows generated by present expenditure, but for now management can use long‐term intentions and broad guidelines.

Citation

Robinson, H. (1986), "Marketing Expenditures as Capital Investment", European Journal of Marketing, Vol. 20 No. 1, pp. 83-94. https://doi.org/10.1108/EUM0000000004630