The most recent Marketing and Firm Value publications include i) an 85 page monograph, “Marketing and Firm Value”, Hanssens and Sirnivasan, which was published by Foundations and Trends on July 6, 2022. It was followed by ii) an 11 page summary written by the authors and lastly a iii) Marketing Sciences Institute webinar was held on January 31, 2023 conducted by them as well.

Hanssens is also co-author of the iconic text, iv) Marketing Response Models, second edition published 2001

As a frame of reference for Hanssens’ Marketing and Firm Value initiative, the following quote is from (i) above:

“In recent years, there has been a renewed emphasis in demonstrating that marketing investments can translate into profitable growth.”

Further confirmation of marketing’s importance to the firm is provided by a recent CMO survey.  Quoting:

“Demonstrating the impact of marketing actions on financial outcomes is #1 C-suite communication challenge (CMO survey 2019-2022). 11% of revenues are in marketing investments, yet only 41.6% are able to quantify its impact.”

The Operational Income Statement (OIS)’s marketing-driven analytics contribute a variety of new “arrows” to the Marketing and Firm Value’s analytics’ quiver including:

1. OIS solves a previously insoluble marketing problem: sizing, allocating and measuring the marketing budget for best possible profit.
2. The solution is a new income statement that includes:
   1. A new, most profitable forecast
   2. All the new income statement’s resource required to make and fulfill the new forecast
3. OIS is always up to date assuring OIS is always on course for maximum profit
4. OIS maximizes the ROI of sales and marketing expenditures
5. OIS allows the firm to evaluate other marketing firm values than profit
   1. revenue.
   2. share hold value: economic value analysis
   3. customer life time value:
   4. customer equity:
6. OIS provides other income statement related benefits in addition to (4) above
7. OIS will be a valuable financial planning enhancement for the CEO/CFO to share with the analysts that the follow their firm.
8. OIS generates a new model-based most profitable forecast update to the traditionally developed judgement-based forecast. It fulfills the counsel in an email Professor Hanssens shared with the author on February 26, 2014. Quoting:
   “Perhaps one additional perspective is the value of combining judgment and model based forecasts. I have attached an old, but very good article on this subject”  DATABASE MODELS AND MANAGERIAL INTUITION, August, 1990. Interested readers should contact the author for a copy.

In conclusion, OIS is a unique and significant addition to the initiative’s analytics portfolio. It places marketing at the center of the firm’s financial planning activities as their response functions drive the most profitable forecast.