F9-06·F9 — Marketing Finance
The Business Case for Marketing Investment
The productive tension
Short-term paybackandlong-term value
The synthesis
A defensible business case for marketing is neither a 12-month payback promise nor a hand-waving appeal to long-term brand value. It is a portfolio submission with two baskets — short-horizon activation measured monthly, and long-horizon brand-building measured over multi-year rolling windows — each linked to an explicit financial outcome. The evidence-based marketer wins the budget meeting by speaking the CFO''s language of risk-adjusted returns, scenario planning, and discounted cash flows.
Learning objectives
- →Distinguish the activation case from the brand case in business-case construction
- →Apply the Binet & Field 60:40 rule and explain its empirical basis
- →Summarise the Profit Ability findings on long-term versus short-term ROI
- →Translate brand investment into DCF and NPV terms (Doyle approach)
- →Construct a CFO-credible scenario plan for marketing spend
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