Some of the accounting discipline's most fundamental concepts have important implications for marketing that are insufficiently developed in general-purpose classes. This course will explore these concepts with the explicit goal of applying them to the measurement and management of marketing activities.
The class is divided into three broad areas:
1) Measurement and management of return on marketing investment and brand equity. The traditional accounting model treats marketing expenditures as expenses rather than investments, a shortcoming with many potentially deleterious consequences for marketing managers. We will explore this problem and possible responses in depth. Topics to be covered include brand valuation models and non-financial performance metrics connected to marketing activities.
2) Marketing applications of managerial accounting frameworks. Topics to be covered include customer profitability analysis (including customer lifetime value) and activity-based pricing.
3) Accounting and financial statement analysis for selling activities. Accounting for selling activities is one of the most critical and controversial areas of financial reporting. Topics to be covered include revenue recognition in retailing or in selling to retailers, as well as the financial analysis of major retail and CPG companies.
The class will combine lectures and cases. It should be of interest to anyone pursuing a marketing career as well as students interested in the financial analysis of an organization's marketing activities.
Prerequisite: One prior ACCT course