The need for publicly traded companies to deliver quarterly results—and therefore take mostly a short-term view to marketing investment—often leads to them falling into a discounted cash-flow trap. That is, the believe that cutting marketing investment will not affect projected cash inflows. In fact, the opposite is true. The more they cut the lower the future cash-flow. The leads to them cutting even further; falling into cash-flow trap that spirals out of control.
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May