Impact of Tournament Incentives on Management Earnings Forecasts

This paper examines how rank-order tournament incentives in the top management team (TMT) influence the quality of management earnings forecasts (MEFs). Instead of breeding feelings of inequality and fostering peer sabotage, the large pay gap between the CEO and subordinates may motivate top executives to issue more accurate and precise forecasts to win the prize of promotion. The positive tournament effect on the quality of MEFs is weakened (strengthened) when the perceived probability of promotion for candidates is low (high). We find that firms with higher tournament incentives are more likely to issue supplementary forecasts to increase the credibility of MEFs. By examining the tournament effect at each subordinate manager level, we find that CFOs are the driving force in controlling the frequency and quality of management forecasts and chief marketing officers (CMOs) may also contribute to the quality of management forecasts. The results are robust to multiple measures of tournament incentives and multiple research designs.

Influential Chief Marketing Officers and Management Revenue Forecasts

ABSTRACT We examine the role of the chief marketing officer (CMO) in corporate voluntary disclosure of future revenues. Using a sample of S&P 1500 firms for the period from 2003 to 2011, we find that the presence of an influential CMO in top management is positively associated with the likelihood of a firm issuing a management revenue forecast. We also find that firms with an influential CMO provide more accurate revenue forecasts than other firms. These findings extend to long-window change analyses and are robust to the use of a propensity score matched-pair approach. Overall, the results are consistent with the notion that CMO influence in top management appears to play an important role in voluntary revenue disclosures. JEL Classifications: M12; M31; M41. Data Availability: All data are publicly available from sources identified in the paper.

B2B digital marketing strategy: a framework for assessing digital touchpoints and increasing customer loyalty based on Austrian companies from heating, ventilation and air conditioning industry

Research background: Digital marketing has changed the nature of company-to-customer communication. With rising information overload and reduced decision-making time, touchpoints have gained additional importance by yielding customer loyalty. Yet, the existing digital marketing tools have failed to keep pace with these trends. Companies are lacking a simple framework that focuses on a digital marketing strategy built around touchpoints and customer loyalty. This is especially relevant for B2B companies, which due to their specifics are more dependent on customers and less flexible in adapting of new digital trends. Purpose of the article: A B2B business strategy tailored to digital trends demands a re-evaluation of prior understanding of a product portfolio, a company’s internal and external environment. The purpose of the article is to present a framework that helps to undertake the necessary changes and enables the connections with industry. Methods: The suggested model has been drawn from the literature review and extended based on the findings of a multiple case study of Austrian Heating, Ventilation and Air Conditioning (HVAC) industry companies. The fieldwork was conducted in early 2017. Findings & Value added: Aspiring to follow trends in digital marketing and to help B2B companies to adapt their strategy to ongoing changes in company-to-customer communication, a new framework has been developed. The framework aims to increase customer loyalty and focuses on channels/touchpoints, assets, skills, audience and customer journey. The model could be beneficial for Chief Marketing Officers (CMO) and other C-levels by offering a simple and reliable tool for improving a company's position in the digital marketplace. Moreover, it enables continuous adjustment of an already existing business strategy.

The impact of social media on the B2B CMO

Purpose The commentary paper aims to delve into how social media are being used by chief marketing officers (CMOs) and shows that while many in business-to-customer have understood how to use social media already, their CMO counterparts in business-to-business (B2B) have not made up their minds. So some key questions are raised about B2B CMOs’ readiness to use social media, what this accomplishes and resulting effects upon the role of the CMO within an organisation. Design/methodology/approach The research paper involves use of case studies drawn from IBM experience with social media. Findings B2B CMOs are not ready to make use of social media. Even those who are actively engaging are expressing concern that they are pioneering and have not yet put in place a strategy that they are satisfied with. In addition, social media can be used for after-sales service, getting sales leads, engaging with key influencers, building the company’s reputation and enhancing the industry status of key individuals. B2B firms need to exploit the capabilities of processing massive amounts of data to get the most from social media. Originality/value The paper brings insights to the challenges facing CMOs of B2B firms when using social media. It provides a better understanding of what should be the role of CMOs in the use of social media. The CMO must be the voice of the customer as well as the custodian of the values that enable effective use of social media. Effective collaboration within the boardroom is essential and if the CMO is not a board member, then the company should consider making that change.

The execution of marketing strategies in a developing economy

Purpose – The purpose of this paper is to examine how market leaders use marketing strategies to maintain strong performance in their respective sectors within different economic contexts in an emerging developing economy. Design/methodology/approach – Case studies of three consistent, high performing market leaders based on the Ghana Club 100 rankings over the past decade are conducted. This involves structured interviews with chief executive officers (CEOs) and chief marketing officers (CMOs) of the organisations studied. Findings – The findings indicate that irrespective of the country of origin of the firm, or the economic context in a developing country, effective marketing strategies can be used to enhance the performance of organisations in their respective sectors. Originality/value – The approach used in this paper enables the authors to address the effectiveness of the marketing strategies across the past three decades covering the periods of pre-, during and post-economic reforms, and to examine the influence of different types of ownership (local, mixed foreign/local ownership and a multinational) on the execution of marketing strategies in a developing economy.