Increasing marketing's contribution through value creation

Abstract

This conceptual paper seeks to assert that marketing has a role in the greater management domain and to outline a basis for empirical research to contribute to growing knowledge. To address this, the literature is examined to outline the fundamental concepts that underlie commerce activity, namely exchange and value as well the key drivers of cost and benefit. In doing so, this paper suggests that marketing has a role to play as the ‘benefit’ component in the value equation; value equals benefit minus cost. An emphasis on a ratio value exchange (V=B/C) has possibly left business focusing on the denominator, whereas a subtractive value equation offers a way to integrate accounting, management and marketing as a firm adopts a value orientation. As benefits are the outcome of activities and together with costs and benefits drive the value equation a system view of the network of exchanges is worthy of investigation. It is highlighted that research needs to be undertaken to develop this notion further. Further research may also assist marketing to (re)gain its position through integrating its capabilities and learning within the broader business and management domain.