The Scope of Marketing’s Decision Authority and Firm Performance

Raji Srinivasan, University of Texas at Austin

Given the thoroughness with which marketing textbooks cover situation analysis, strategy and the 4Ps (product, price, place and promotion), one might expect the marketing function to have authority over decisions in these areas. However, evidence indicates that this may seldom be the case. Raji Srinivasan will present empirical evidence that there is no one role for the marketing function across companies: companies differ in the scope of the marketing’s authority over decisions related to situation analysis, strategy, and the 4Ps. Further, she will provide a theoretical link (and empirical support) that the broader the scope of the marketing function’s decision authority, the better the company’s performance. She will discuss implications for senior managers as well as practical guidance on how to organize the marketing function to improve performance.

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