Differences in decision-making criteria towards the return on marketing investment: A project business perspective

Assessing the value of marketing to a business remains a thorny issue in theory and practice. Decision-making at the finance–marketing interface is under-researched, particularly for project businesses. Confronted by demands of accountability concerning the allocation of resources to meet competitive pressures, the paper examines the quality and extent of dialogue in investment decision-making. The return on investment (ROI) and marketing-specific investment (ROMI) are important factors at the marketing–finance interface. ROMI/ROI is examined from quantitative and qualitative viewpoints. The empirical evidence shows that short-term financial criteria dominate and are misaligned to long-term performance of project businesses and business units. Marketing investment in relation to project markets poses a particularly challenging environment. Client lifetime value and programme data sets for ROMI coupled with qualitative decision-making offer ways forward with constructive dialogue at the finance–marketing interface. The paper concludes with detailed recommendations for research and practice.