JOURNAL OF

MARKETING
MANAGEMENT

EDITORIAL:
The marketing / accounting interface
Robin Roslender, Heriot Watt University, UK*
Richard M. S. Wilson, Loughborough University, UK

Abstract

Given: one marketing manager and one accounting manager. Finding: poor
communication on financial criteria and goals.
(Berry 1977: 125)

The risk of this situation occurring is inevitably present when those with different
professional roles are working in accordance with their own norms.
In his seminal paper on general systems theory, the economist Kenneth
Boulding (1956) referred to the phenomenon of “specialised ears and generalised
deafness”, which can be seen to exist when, for example, marketing managers
are financially illiterate or accountants lack the necessary insights to design,
implement and operate accounting systems which are useful to marketing
managers in carrying out their roles. It is increasingly difficult to attach credence
to the idea of marketing managers who lack financial skills, or accountants
who fail to relate to the context in which marketing managers operate, hence
understanding the marketing/accounting interface is important in generating
emergent properties from the interaction of marketers and accountants (whereby
the whole is greater than the sum of the parts).

As Hopwood noted (1976: 227):

It is paradoxical that whilst many of the most significant financial and accounting
activities within any company start with the forecasts of market opportunities, sales

*Correspondence details and biographies for the authors are located at the end of the article.

JOURNAL OF MARKETING MANAGEMENT, 2008, Vol. 24, No. 1-2, pp.661-668

ISSN0267-257X print /ISSN1472-1376 online © Westburn Publishers Ltd. doi:10.1362/026725708X326048
662 JMM Journal of Marketing Management, Volume 24

volumes, prices and anticipated revenues, the explicit role of accounting and finance in
the control of the marketing function itself has been neglected.

Those studying for an undergraduate degree or a master’s degree in business

administration or management studies will almost certainly be required to take
courses in both Marketing and Accounting – although it is unlikely that the academic
curriculum will focus on the interface of these two disciplines.
Some years ago, within two UK professional bodies (both of which have many
registered students around the world) there was an explicit recognition within the
respective curricula/examinations of the Chartered Institute of Marketing (CIM)
on the one hand, and the Chartered Institute of Management Accountants (CIMA)
on the other, of the importance of avoiding generalised deafness due to specialised
ears. The CIM syllabus included a paper entitled “Financial Aspects of Marketing”,
and the CIMA syllabus included a paper entitled “Organization and Marketing
Management”. Neither of these papers has survived as a separate component of
either curriculum, however; financial awareness is currently deemed to be implicit
in the CIM’s syllabus, as is marketing awareness within the CIMA’s syllabus. This
seems grossly unsatisfactory given the relative importance of having financially aware
marketers, and accountants who recognise the imperatives of marketing orientation,
if the effectiveness of organisations is to be enhanced.
The literature on the marketing/accounting interface can be traced back over
many years – as is evident in Harrison’s 1981 review. Early contributions were made
by US-based authors such as Culliton, Goodman, Longman, Mossman, Sevin, Schiff,
Bursk, with Canadian contributions from Shapiro, Australian contributions from
Ratnatunga, and more recent British contributions being provided by Simmonds,
Guilding, Piercy, Ambler, Shaw, Doyle, Roslender, Ward and Wilson.
In 2006 a Call for Papers was issued (see Appendix), the responses to which
included the papers collected in this themed double issue of JMM. These papers could
be located within the schematic framework of five key managerial questions which
provides the structure of Wilson and Gilligan (2005), namely:

• Where are we now?

• Where do we want to be?
• How might we get there?
• Which way forward is best?
• How can we ensure arrival?

The second and third of these five key questions are the concerns of top management
and senior/middle management respectively in specifying ends and means. The
interface between marketing and accounting is more evident in relation to Question
1 (re Planning), Question 4 (re Decision-making) and Question 5 (re Control).
However, given the clustering of the accepted papers we thought it more
appropriate for the purposes of this collection of papers to locate them as follows,
with an increasing emphasis on metrics and customers as one works through the
collection:
 Roslender and Wilson Editorial 663

Studies on the marketing/accounting interface

Baljit K. Sidhu and John H. Roberts

The marketing/accounting interface - lessons and limitations
This paper explores the issues giving rise to the challenges on the interface and urges
a stronger marketing-financial analyst dialogue, underpinned by a stronger marketing
accounting shared language.

Robert M. Inglis
Exploring accounting and market orientation: an inter-functional case study
The findings from an inter-functional case study highlight a number of factors which
potentially moderate the adoption of market-oriented accounting (MOA), and
reveal a space in conceptual linkages between market orientation and contemporary
management accounting techniques.

Nevine El-Tawy and Tony Tollington

The recognition and measurement of brand assets: an exploration of the accounting /
marketing interface
The asset recognition criteria presented in this paper break free from the narrow,
definitional and rule-based perspective of accounting epistemology to offer an
alternative view based on the recognition of artefacts and the related notion of
separability.

Applications

Tim Ambler and John H. Roberts

Assessing marketing performance: don’t settle for a silver metric
This paper starts with the premise that marketing should be accountable, and
considers by which measure (or measures) it should be held to account. It proceeds
to rigorously evaluate alternative ‘silver metrics’ and comes out in favour of multiple
metrics for assessing marketing performance.

Paul A. Phillips and Sue Vaux Halliday

Marketing / accounting synergy: a discussion of its potential and evidence in e-business
planning
This paper sheds light on how e-business planning is taking place and identifies the
key areas which are, together, acting as barriers to aligning organisational design,
structures and people in the digitised world. It presents empirical evidence of de
facto leadership being taken by the IT function, to the detriment of what might
otherwise have been developed (i.e. a synergistic relationship between the marketing/
accounting planning interface and business performance).
664 JMM Journal of Marketing Management, Volume 24

Focusing on the customer

Christopher Guilding and Lisa McManus

Exploring the potential of customer accounting: a synthesis of the accounting and
marketing literatures
In this paper a review of the marketing and accounting literatures shows that, to date,
no previous study has examined the intersection of the marketing and accounting
literatures pertinent to customer accounting (CA). It provides a synthesis of these two
literatures in exploring the potential of CA.

Kenneth Weir
Examining the theoretical bases of customer valuation metrics
In this paper the intensification of marketing activity in the last 20 years, giving rise to
greater needs for customer valuation and profitability metrics, is explored. The author
seeks to clarify the theoretical influences underpinning alternative approaches, and
offers some implications for the future development of customer valuation metrics.

Robin Gleaves and Jamie Burton

Accounting is from Mars, marketing is from Venus: counselling both disciplines to
improve conceptualisation of customer profitability in business management
Marketing and management accounting have traditionally been poles apart in terms
of both focus and approach, which highlights the need for greater synergy. In this
paper a case is made (via a novel conceptual model) to establish a common ‘platform
of understanding’ both within and between the two disciplines in order that further
progress might be made.

Lynette Ryals
Determining the indirect value of a customer
This paper examines the development and application of three processes to determine
indirect value in business-to-business and business-to-consumer contexts. It shows
that indirect value has a measurable monetary impact which is not captured by
conventional financial tools, and that understanding this fact changes the way in
which customers are managed.

Conclusion

Robin Roslender and Richard M. S. Wilson

Accounting / marketing synergy: a final word but certainly not the last word
In this Editorial Essay the Guest Editors offer some concluding comments, while
emphasising that there is a continuing need for developing a closer relationship
between marketing and accounting in the interests of enhanced organisational
effectiveness.
 Roslender and Wilson Editorial 665

ACKNOWLEDGEMENTS

We would like to thank the Editor of JMM, Professor Susan Hart, for both facilitating
and encouraging this themed issue, and the editorial staff at Westburn Publishers
(especially Laura Hemming).
Our appreciation is also due to those who have helped by acting as referees for
submissions received in response to the Call for Papers (which is reproduced at the
end of this Editorial).
When we embarked on this venture in 2006, Tim Ambler of the London Business
School was part of the team of Guest Editors, but he withdrew from this role during
2007 due to the pressure of his other commitments. Nevertheless, we are grateful to
him for his contribution to setting up the project and his valuable role in reviewing
several submissions.
It is our hope that this collection might make a modest contribution to achieving
closer links and greater mutual understanding between accountants and their
marketing colleagues in the interests of enhanced organisational effectiveness.

REFERENCES
Ambler, T. (2000), Marketing and the Bottom Line: the marketing metrics to pump up cash
flow, London: FT/Prentice Hall.
Ambler, T., Barwise, P. and Higson, C. (2001), Market Metrics: What shall we tell the
shareholder? London: ICAEW – Centre for Business Performance.
Ambler, T. and Kokkinaki, F. (1997), “Measures of Marketing Success”, Journal of Marketing
Management, Vol. 13, No. 7, pp. 665-78.
Berry, D. (1977), “Profit contribution: accounting and marketing interface”, Industrial
Marketing Management, Vol. 6, No. 2, pp. 125-8.
Boulding, K. (1956), General Systems Theory: The Skeleton of Science, Management Science,
1(1), April, pp. 197-208.
Bursk, E.C. (1966), View Your Customers as Investments, Harvard Business Review, Vol. 44,
No. 3, May-June, pp. 91-4.
Culliton, J.W. (1948) The Management of Marketing Costs, Boston: Division of Research,
Harvard Business School.
Doyle, P. (2000), Value-Based Marketing, Chichester: Wiley.
Goodman, S.R. (1970), The Marketing Controller Concept: An Inquiry into Financial/
Marketing Relationships in Selected Consumer Companies, Cambridge, Mass.: Marketing
Science Institute (Special Report).
Guilding, C.J. and Pike, R.H. (1990), “Intangible Marketing Assets: A Managerial Accounting
Perspective”, Accounting and Business Research, Vol. 21, No. 18, pp. 41-9.
Harrison, G.L. (1981), “The Accountant’s Role in Marketing: a Bibliographic Study and
Analysis of its Origins and Development” pp 22-57 in Wilson, R.M.S. (ed.) (1981).
Hopwood, A.G. (1976), “Corporate Finance and Management Accounting”, pp. 211-34 in
Use of Management and Business Literature, London: Butterworth.
Longman, D.R. and Schiff, M. (1955) ,Practical Distribution Cost Analysis, Homewood,
Illinois: Irwin.
Mossman, F.H., Crissy, W.J.E. and Fischer, P. M. (1978), Financial Dimensions of Marketing
Management, New York: Wiley.
Piercy, N.J. (1987), “The Marketing Budgeting Process: Marketing Management Implications”,
Journal of Marketing, Vol. 51, No. 4, pp. 45-59.
Ratnatunga, J.T.D. (1988), Accounting for Competitive Marketing, London: CIMA (Occasional
Paper Series)
666 JMM Journal of Marketing Management, Volume 24

Roslender, R. and Hart, S.J. (2002a), Marketing and Management Interfaces in the Enactment
of Strategic Management Accounting Practices: An Exploratory Investigation, London:
CIMA.
Roslender, R. and Hart, S.J. (2002b), “Integrating marketing and management accounting
in the pursuit of competitive advantage: the case for strategic management accounting”,
Critical Perspectives on Accounting, Vol. 13, No. 2, pp. 255-277.
Roslender, R. and Hart, S.J. (2003), “In search of strategic management accounting: theoretical
and field study perspectives”, Management Accounting Research, Vol. 14, No. 3, pp. 255-
279.
Roslender, R. and Hart, S.J. (2006), “Interfunctional cooperation in progressing accounting
for brands. the case for brand management accounting”, Journal of Accounting and
Organizational Change, Vol. 2, No. 3, pp. 229-247.
Schiff, M. and Mellman, M. (1962), Financial Management of the Marketing Function, New
York: FERF.
Sevin, C.H. (1965), Marketing Productivity Analysis, New York: McGraw-Hill.
Shapiro, S.J. and Kirpalani, V.H. (eds.) (1984), Marketing Effectiveness: Insights from
Accounting and Finance, Boston: Allyn & Bacon.
Shaw, R. (1998), Improving Marketing Effectiveness, London: The Economist in association
with Profile Books.
Simmonds, K. (1982), “Strategic Management Accounting for Pricing: A Case Example”,
Accounting and Business Research, Vol. 12, No. 47, pp. 206-14.
Simmonds, K. (1986), “The Accounting Assessment of Competitive Position”, European
Journal of Marketing, Vol. 20, No. 1, pp. 16-31.
Ward, K. (1989), Financial Aspects of Marketing, Oxford: Heinemann.
Wilson, R.M.S. (1973), Management Controls in Marketing, London: Heinemann/CIM.
Wilson, R.M.S. (ed.) (1981), Financial Dimensions of Marketing, (two volumes) London:
Macmillan/CIMA.
Wilson, R.M.S. (1999), Accounting for Marketing, London: International Thomson Business
Press.
Wilson, R.M.S. (ed.) (2001), Marketing Controllership, Aldershot: Ashgate. (A volume in the
Dartmouth International Library of Management).
Wilson, R.M.S and Bancroft, A.L. (1983), The Application of Management Accounting
Techniques to the Planning and Control of Marketing of Consumer Non-durables, London:
CIMA (Occasional Paper Series).
Wilson, R.M.S. and Gilligan, C. (2005), Strategic Marketing Management, 3rd edition, Oxford:
Elsevier.

APPENDIX: CALL FOR PAPERS

Promoting an Improved Marketing/Accounting Synergy

Work in the space covered by both marketing and accounting has increased in recent
years. As both disciplines have expanded their activities, they have identified a
coincidence of interests resulting in developments including strategic management
accounting, corporate performance measurement, marketing accountability, customer
relationship management and intellectual capital. These developments have built
upon longer established interests in marketing controllership, brand accounting and
pricing approaches. It therefore is opportune to assemble a collection of papers that
provides a comprehensive survey of the state of the art of research and practice in the
marketing-accounting joint space, including how this relates to previous developments
and the prospect of further developments given the expansion of direct marketing,
e-commerce and the central role attributed to relational capital assets.
 Roslender and Wilson Editorial 667

With growing attention being given to performance measurement and management

in both the marketing and management disciplines, this is also an ideal opportunity
to record the current state of research in this important area.
Potential contributions are envisaged as being characterised by a significant
degree of interdisciplinarity, mirroring a progressive abandonment of traditional
silo or exclusive approaches to management. Submissions are therefore invited from
researchers and practitioners in either discipline, or in other aspects of management,
whose work is at or close to the interface with the other discipline. An indicative list
of the topics that might be addressed in the special issue is:

• marketing accountability
• marketing controllership
• marketing efficiency and effectiveness
• marketing investment
• marketing performance measurement and reporting
• marketing productivity analysis
• the continuing use of PIMS data
• approaches to customer valuation
• valuing/managing marketing assets
• strategic management accounting
• preparing business/marketing/brand plans
• linking marketing activities with corporate goals

ABOUT THE AUTHORS AND CORRESPONDENCE

Robin Roslender is a Professor in Accountancy at Heriot-Watt University, where he

is also currently the Director of Research in the School of Management and Languages.
A trained social scientist, he initially taught sociology, behavioural science and
organisation studies at Napier University Edinburgh, before taking up a lectureship
in accountancy at the University of Stirling in 1989. He pursues research interests in
both mainstream and critical accounting, with most of his contributions in the field
of managerial accounting. His work at the marketing/accounting interface dates back
to the mid 1990s, since which time he has produced a range of published outputs
with Susan Hart. Dr Roslender is also currently engaged in researching workforce
health and wellbeing as an element of primary intellectual capital, and early in 2008
became Editor of the Journal of Human Resource Costing and Accounting.
Corresponding author: Robin Roslender, Department of Accountancy and Finance,
School of Management and Languages, Heriot-Watt University, Edinburgh , EH14
4AS, UK.
T + 44 (0)131 4513716
F + 44 (0)131 4353268
E R.Roslender@hw.ac.uk
668 JMM Journal of Marketing Management, Volume 24

Richard Wilson is Professor of Business Administration and Financial Management

(Emeritus) and Visiting Professor in the Department of Information Science, both at
Loughborough University, UK, and the J.A. Valentine Visiting Professor of Commerce
at the University of Otago in New Zealand. He holds degrees and professional
qualifications in both marketing and accounting, has held academic and commercial
appointments in both fields, and has published extensively on their interface.
Professor Richard M. S. Wilson
E R.M.Wilson@lboro.ac.uk