Securing a calibrated marketing budget

Publication Type

Journal Article

Version

publishedVersion

Publication Date

7-2026

Abstract

This study investigates the sociopolitical processes underlying the development and approval of marketing budgets in large multinational corporations. While prior research has focused extensively on optimizing the level and allocation of marketing budgets, little attention has been paid to the internal organizational dynamics that shape the marketing budgeting process. Drawing on the theories-in-use of both CMOs and CEOs, this study examines how these executives codevelop a calibrated marketing budget (CMKB)—a budget that aligns expected performance with allocated resources through an iterative, participative process. Field data show that CMOs deploy a set of signals to assuage CEO concerns related to goal conflict and information asymmetry. These signals reflect both the quality (e.g., granularity, opportunity elaboration, threat mitigation) and intentions (e.g., cultivated endorsements, relinquishment) of the CMO's budget. In addition, the study delineates between two types of CMKBs, a growth-focused CMKB and a constrained CMKB, and demonstrates that the effectiveness of the quality and intent signals used by CMOs varies across them. Taken together, these findings provide a theoretical foundation for advancing research on the marketing budgeting processes in organizations.

Keywords

Agency theory, Chief marketing officer, Marketing budget, Marketing strategy, Signaling theory, Theories-in-use

Discipline

Business Administration, Management, and Operations | Marketing

Research Areas

Marketing

Areas of Excellence

Digital transformation

Publication

Journal of Marketing

First Page

1

Last Page

24

ISSN

0022-2429

Identifier

10.1177/00222429261431239

Publisher

SAGE Publications

External URL

https://api.elsevier.com/content/abstract/scopus_id/105046190925

Additional URL

https://doi.org/10.1177/00222429261431239

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