1. Joost M.E. PenningsProfessor of Marketing ALEX Beleggersbank Professor in Finance The Marketing-Finance Conference :The Whole is Greater than theSum of its Parts

2. Table of contents

Marketing develops interest in Finance

Finance develops interest in Marketing

Overview of Program

Change in Program

3. Marketingdevelops interest in Finance

Can Marketing Regain Its Seat at the Table (Webster, Malter & Ganesan; Leeflang & Verhoef)?

• Marketing gets no respect in the boardroom ( Schultz)

How can marketing continue to be relevant as a discipline?

• Focus has been on intermediate variables

4. Marketingdevelops interest in Finance

How can marketing activities translate in financial performance?

• Impact on cash flows

5. Marketingdevelops interest in Finance

Dimensions of cash flow

• Expected cash flows

• Volatility in cash flows

• • risk-adjusted cost capital

Net cash flows determined by relationships amongst all (negative/positive) cash flow drivers

• Marketing activities are THE cash flow drivers

6. Marketingdevelops interest in Finance

Questions of marketing managers:

How can marketers contribute to shareholder value?

• Do marketers need help from a third party?

How does focus on shareholder value impact the relationship with customers and suppliers?

Do suppliers and customers need the same focus on shareholder value / same risk profile to establish long term relationships?

7. Financedevelops interest in Marketing

Marketers interact with the client

• Marketing is closest to the dollar

Decision making processes drive (financial) markets and financial performance

• Hard numbers tell only part of the story

• Chicago man may have feelings too

8. Financedevelops interest in Marketing

Market anomalies

• Why? Market efficient paradigm?

• • How do market participants behave?

• • • Role of market micro structure (market institution)

• • Impact on market behavior (aggregate level)

• • Why do financial product fail or succeed?

9. Financedevelops interest in Marketing

Market research methodology

• Measurement issues

• Choice models that include constructs

• • Latent variables

• Heterogeneity in behavior of market participants

10. Overview of Program

Marketing reaches out to Finance and vice versa

• Professors De Ruyter & Eichholtz

MF approach from Marketing & Finance perspective

• Professors Srivastava & Weber

MF Approach in Industry: How?

• Dr. Algra

MF Approach in Academic programs

• Dr. Hoffmann

11. Change in Program

Presentation by Fortis is cancelled:

• 09.45-10.15Prof. De Ruyter

• 10.15-10.45 Prof. Eichholtz

• 10.45-11.15 Coffee Break

• 11.15-12.00 Prof. Srivastava

• 12.00-13.15 Lunch