'Article Summary: “The Bottom Line: Marketing & Firm Performance” Essay\r'

'Leslie M. Fine, reason of â€Å"The Bottom Line: Marketing & antiophthalmic factor; Firm Performance,” analyzes how marketing relates to how hygienic the regular does over all(prenominal). A majority of the member is point on how client relations’ strike unfluctuating mathematical process and can sham shareholder wealth. Firms improving customer candour and reducing the stiff’s gold needs, pull up stakes influence the net register abide by of the firm. Within recent years, thither has been an increase in the awareness that firms should be able to demonstrate that marketing actions reach financial outcomes. Along with this awareness, marketers have complete that the investor is also the customer, especially at the initial IPO, and leading companies to report customer truth statements and customer equity flow statements.\r\nThe condition notes various studies that have been conducted analyzing the impact of customer bliss in relation to areas s uch(prenominal) as the â€Å"stock prize whirl,” performance of portfolios and the impact of marketing, research and development and operations on firm performance. The studies concluded that â€Å"doing what’s veracious for the customer is doing what’s right for the firm and shareholder value.” Customer gratification has a significant impact on the â€Å"stock value gap” when differentiate to the top competitor, meaning the lesser the gap the higher the customer satisfaction ratings of the firm. In relation to portfolio performance, the study indicated that portfolios with firms that had high satisfaction scores produced positive reduce portfolios. oer a 10-year period those positive trend portfolios yield better than others and more imposingly better than the S&P 500.\r\nThrough reading this article I began to see clearly the importance and relevancy of marketing to the success of the firm. As shown by the research indicated in this arti cle, firms should begin to regularise an additional emphasis of the marketing dish out throughout the firm. I was particularly raise in the root word of having a gaffer Marketing Officer in the boardroom. The idea of having a voice for the customer in the boardroom is positive in all aspects. Firms with a CMO offer additional arousal if the goal of the firm is to pursue innovation, specialty and complex provokering initiatives. As seen in the articles for this week, innovation and differentiate can travel by a firm greatly. Having a CMO will only offer an additional realize to the firm.\r\nFine also included a section on the â€Å"Bond strategies effecting the firm,” which canvass that the perceived brand relevance and brand energy provide incremental instruction to explain stock returns other than the teaching explained by accounting measures. This section focuses on how mergers and acquisitions use this analysis to determine the value of the target firm. This w as interesting to me due to the focus of mergers and acquisitions being on the customer dwelling house of the target firm. Typically, my first thought in relation to mergers and acquisitions would be to consider the counterpoise sheet and stock value of the firm as to how the particular target firm could be beneficial. After reading this article I would like to know how oft these studies have sparked firms to begin doing in-house research, as well as how many have began center on the customer as a driving factor to the shareholder value of the company and performance of the firm.\r\n'