HARMONIZATION OF THE MARKETING AND ACCOUNTING ACTIVITIES IN THE IMPLEMENTATION OF THE GROWTH STRATEGY

Authors

DOI:

https://doi.org/10.7251/ACE2135115G

Keywords:

growth strategy, market share, marketing cost, activity based management, cost allocation, activity based costing, relevant accounting information

Abstract

This research is an attempt to emphasize the interdependence of the accounting and marketing functions in the segment of the growth strategy implementation with an attempt to increase the market share. In this process, activity-based management and activity-based costing were used as recommended instruments, with analytical activities and implementation (operational) activities in the application of the mentioned strategy considered separately. In both cases, the analysis was performed from the standpoint of the need to identify activities and costs of non-production departments, such as marketing and accounting, by individual cost objects, which are, in this case, target markets where the growth strategy will be applied. In this way, it will be possible to concretize the target character of such costs and an objective approach when linking them to cost objects, because the cost of such activities is pooled out from the costs of marketing department whose costs are mostly budgeted as a unique whole. In operational terms, this will enable a number of decisions, such as: whether to outsource the analysis of the effects of entering new markets or to do it within the company, whether and how to standardize time and costs of non-production activities; whether there is an economic justification for entering new markets based on planned results that include the consumption of resources of identified non-production activities that are commonly “hidden” in the aggregate cost values of these and other functions.

References

Gajić, P. (2017a). Analiza profitabilnosti kupaca - pretpostavka upravljanja ukupnim rezultatom poslovanja. Financing, 2(17), 24-36. doi:10.7251/FIN1702024G

Gajić, P. (2017b). Upravljačko računovodstvo - strategijski aspekti računovodstvene podrške upravljanju ključnim faktorima uspjeha. Banja Luka, Bosna i Hercegovina: Ekonomski fakultet Univerziteta u Banjoj Luci.

Doyle, P. (2018). Value-Based Marketing - Marketing Strategies for Corporate Growth and Shareholder Value. Hoboken, USA: John Wiley & Sons.

Kotler, P., Armstrong, G., Saunders, J. & Wong, V. (2005). Principles of marketing, (4th European ed.). Harlow, UK: Pearson education limited. Translation title: Principi marketinga (2007). Zagreb, Hrvatska: Mate.

Li, W. S. (2018). Strategic Management Accounting - A Practical Guidebook with Case Studies. Singapore: Springer Nature

Lewis, R. J. (November 1991). Activity Based Costing for Marketing, reprinted in: Readings in Management Accounting, ed. Young, M. S. (2012). New Jersey, USA: Prentice Hall,

Maher, M. (1997). Cost Accounting – Creating Value for Management. Chicago, Illinois, USA: Irwin.

Macura, P. (2009). Marketing – mikro, mala i srednja preduzeća. Banja Luka, Bosna i Hercegovina: Ekonomski fakultet Univerziteta u Banjoj Luci.

Phillips, P. & Vaux Halliday, S. (2008). Marketing/accounting synergy: a discussion of its potential and evidence in e-business planning. Journal of Marketing Management, 24(7), 751-770. doi:10.1362/026725708X345506

Rust, R.T., Ambler, T., Carpenter G. S., Kumar V. & Srivastava R. K. (2004). Measuring Marketing Productivity: Current Knowledge and Future Directions. Journal of Marketing. doi:10.1509/jmkg.68.4.76.42721

Hilton, R. W. (1997). Managerial Accounting. Boston, Massachusetts, USA: Irwin McGraw Hill.

Downloads

Published

2021-12-31

How to Cite

Gajić, P., & Macura, P. . (2021). HARMONIZATION OF THE MARKETING AND ACCOUNTING ACTIVITIES IN THE IMPLEMENTATION OF THE GROWTH STRATEGY. Acta Economica, 19(35), 115–140. https://doi.org/10.7251/ACE2135115G

Issue

Section

Review article