E-Book Overview
The corporate world is typically structured in silos. Managers urgently need to overcome this "silo" effect by fusing ideas across different functional areas in the firm. In Fusion for Profit, Sharan Jagpal, a well-known and highly respected multidisciplinary researcher and business consultant, explains in simple language using real-world examples how managers can use sophisticated concepts to fuse different functional areas in the firm, especially marketing and finance, to increase the firm's value. The author provides novel solutions to a wide range of complex business problems ranging from choosing pricing and bundling strategies, to positioning and messaging strategies, to measuring brand equity, to measuring advertising productivity in a mixed media plan including Internet advertising, to compensating a multiproduct sales force, to measuring the potential gains and risks from mergers and acquisitions. These concepts are illustrated using case studies from a variety of firms in different industries, including AT&T, Coca-Cola, Continental Airlines, General Electric, Home Depot, Southwest Airlines, and Verizon.
E-Book Content
Fusion for Profit
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Fusion for Profit How Marketing and Finance Can Work Together to Create Value
Sharan Jagpal
With the assistance of Shireen Jagpal
1 2008
1 Oxford University Press, Inc., publishes works that further Oxford University’s objective of excellence in research, scholarship, and education Oxford New York Auckland Cape Town Dar es Salaam Hong Kong Karachi Kuala Lumpur Madrid Melbourne Mexico City Nairobi New Delhi Shanghai Taipei Toronto With offices in Argentina Austria Brazil Chile Czech Republic France Greece Guatemala Hungary Italy Japan Poland Portugal Singapore South Korea Switzerland Th ailand Turkey Ukraine Vietnam
Copyright © 2008 by Oxford University Press, Inc. Published by Oxford University Press, Inc. 198 Madison Avenue, New York, New York 10016 www.oup.com Oxford is a registered trademark of Oxford University Press All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior permission of Oxford University Press. Library of Congress Cataloging-in-Publication Data Jagpal, Sharan, 1947– Fusion for profit : how marketing and fi nance can work together to create value / by Sharan Jagpal; with the assistance of Shireen Jagpal. p. cm. Includes index. ISBN 978-0-19-537105-5 1. Marketing—Management. 2. Marketing—Costs. I. Jagpal, Shireen. II. Title. HF5415.J333 2008 658.8′4—dc22 2007049183
9 8 7 6 5 4 3 2 1 Printed in the United States of America on acid-free paper
Dedicated to my family and friends
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If a man will begin with certainties, he shall end in doubts; but if he will be content to begin with doubt he shall end in certainties. —Francis Bacon (1561–1626)
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Foreword
Fusion for Profit is a one-of-a-kind exposition of how the fusion of marketing skill and financial discipline can drive shareholder value. Sharan Jagpal has written a highly readable book that is buttressed by fascinating examples and easy-to-understand “Maxims.” This superb book is a must read for anyone interested in building businesses. Global and domestic markets today are highly competitive and equally complex. Within this environment, firms both large and small are faced with conflicting objectives, blinding uncertainty, and multifaceted challenges, and managers are constantly struggling with confounding questions such as the following: Which products should be supported? What’s the right level of support for existing bran