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The researchers found that the portfolios of companies pursuing this new holistic approach generated anomalous returns of 8.58%, higher returns than those associated with standard marketing approaches.
The researchers also imitated an investor with $ 100 from 2000 to 2018 in portfolios containing companies using traditional marketing strategies, which focus on the customer first and gaining a competitive advantage, compared to to an investor with $ 100 in a marketing excellence portfolio. Investment in traditional portfolios brought in $ 744, while the Marketing Excellence portfolio grew to $ 1,313, with the most dramatic growth jump in 2017-18.
“We teach our students that businesses can grow organically by focusing on the customer and doing it better than the competition. That’s the story we’ve always told, and that’s what most companies still believe, ”Hohenberg said. “But that’s not what the best companies are doing these days.”
To understand what they actually do, the researchers interviewed 39 senior executives from growing companies. They used a machine-learning algorithm and an original dictionary to scan the text of 8,317 letters addressed to shareholders of American companies, looking for words associated with these new marketing ideas – words such as “ecosystem,” “symbiosis. “,” End user “,” point of contact “and” trial and error “. They compared the growth of these companies and found that investors in companies that announced marketing excellence strategies consistently raised their expectations for company value.
What impresses investors today is a company’s willingness to examine the broader business ecosystem – to venture outside the industry for partnerships and for new talent.