Marketing/accounting synergy: a discussion of its potential and evidence in e-business planning

Abstract

Abstract:Advances in technology create opportunities for new forms of arranging work, such as collapsing the boundaries between marketing and accounting. This makes it possible for management to identify the key attributes and processes required for a more integrated marketing/ accounting process. This paper sheds light on how e-business planning is taking place and identifies the key areas that are, together, acting as barriers to aligning organisation design, structures and people in the digitized world. The study presents empirical evidence of de facto leadership being taken by the IT function, to the detriment of what might otherwise have been developed: a synergistic relationship between the marketing/accounting planning interface and business performance. We set this in the context of converging demands on the marketing and accounting professions and of the literature suggesting that complex marketing/accounting metrics need to be developed to enable effective performance management.Results from our study in e-business planning and our discussion of the potential for increasing marketing/accounting synergy shed some initial light on how both marketing and accounting practices can perpetuate themselves by embracing and interacting with IT infrastructures and data on business performance. If accountants are to remain influential in the digital age, and marketers are to regain their seat at the top table, it is necessary to develop both a metrics dashboard and changes in organisational design. This will facilitate learning and flexibility to demonstrate credible planning processes and enable improved strategy implementation. Results from our study in e-business planning and our discussion of the potential for increasing marketing/accounting synergy shed some initial light on how both marketing and accounting practices can perpetuate themselves by embracing and interacting with IT infrastructures and data on business performance. If accountants are to remain influential in the digital age, if marketers are to regain their seat at top 2 table, it is necessary to develop both a metrics dashboard and changes in organisational design. This will facilitate learning and flexibility to demonstrate credible planning processes and enable improved strategy implementation.

Performance implication of market orientation and use of management accounting systems

“…Nguyen and Doan, 2016;Phillips and Halliday, 2008;Sidhu and Roberts, 2008) with the combination between MO (a marketing variable) and the use of MAS (an accounting variable) in the theoretical model. The findings suggest that firms need to combine marketing strategy (via MO) and MAS to achieve superior firm performance.…”

Narrative transparency

“…They have responded with expanded internal and external reporting and third party auditing, in the hope that these measures will produce positive consequences. While expanded auditing perpetuates a 'sciencey' regime of truth claiming, it does little to address the intensified general scepticism associated with a prevailing climate of institutional risk (Power et al, 2009) or the demands to build better understanding through dialogue in a Web 2.0 environment (Phillips & Halliday, 2008). In this paper we expand on what other authors have stated, 'that there should be more to accounting than "counting"' (Roslender & Wilson, 2008, p. 872).…”

Marketing communication metrics for social media

“…The digitalization and social media technologies have enlivened the discussion around marketing performance measurement during the last ten years (Gleaves et al, 2008;Phillips and Halliday, 2008 We found that the marketing communications measurement must be company specific (Seth and Sisodia, 2002) and have its roots in the company's business strategy (Phillips and Halliday, 2008). Measurement practices should examine how both long-term objectives and short term objectives are met (Ambler and Roberts, 2008 qualitative, quantitative and financial (ROI) (see e.g.…”

“…Marketing performance measurement has to be seen in the context of the whole company (Phillips and Halliday, 2008). To know whether the marketing objectives or whole company's business objectives are met or not, the company needs regular marketing measurement.…”

“…Recent advances in technology have created new opportunities for marketing and accounting integration (Phillips and Halliday, 2008). The digitized world has radically altered the ways in which firms can monitor their customers and collect data from their marketing Ambler et al (2001) propose that "metrics" should be limited to performance measures which are high level, necessary, sufficient, unambiguous, and ideally, predictive.…”