Modeling the differential effect of brand strength on the sales effect of advertising

Tatsuya, Kawahara

doi:10.1080/10696679.2021.1948343

Cited by 1 publication

(5 citation statements)

References 49 publications

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“…Thus, the findings suggested that the contribution of the sales series was higher to the system's short-run dynamism than the marketing spending series. In their works, Kawahara (2022) and Jayson et al (2018) observed equivalent findings as reported here.…”

Section: Discussionsupporting

confidence: 87%

“…The possible outcomes are as follows: 1 marketing spending affects sales over time; 2 sales impact marketing spending over time; 3 bidirectional causality; 4 short-term causation; and 5 long-term causation (Yi-Sheng, 2018). Furthermore, the "marketing-sales" system has a few longitudinal characteristics, such as historical actions that may impact present actions (Kawahara, 2022). These longitudinal characteristics could be of great help in establishing the causal relationship over time between sales and marketing expenditures (van Berlo et al, 2023).…”

Section: Theoretical Frameworkmentioning

confidence: 99%

“…According to a thorough analysis by Kawahara (2022), marketing spending is crucial for generating sales. Managers frequently base the amount of marketing spending on actual or predicted sales (Campbell, 2022).…”

Section: Hypothesesmentioning

confidence: 99%

“…Furthermore, the “marketing-sales” system has a few longitudinal characteristics, such as historical actions that may impact present actions (Kawahara, 2022). These longitudinal characteristics could be of great help in establishing the causal relationship over time between sales and marketing expenditures (van Berlo et al , 2023).…”

Section: Theoretical Frameworkmentioning

confidence: 99%

“…Moreover, historical data on sales and marketing spending may be used to uncover the relationship between them, which can be used to predict sales and determine marketing budgets simultaneously (Fine et al , 2017). This means that time is a crucial element and should be taken into consideration in comprehending and estimating the causal link between marketing spending and sales if any study tries to assess “Granger causality” between them instead of “simple causality” as in past studies (Kawahara, 2022).…”

Section: Theoretical Frameworkmentioning

confidence: 99%

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The interplay between sales and marketing expenditures: an econometric approach in the B2B market

Baidya,

Maity

2023

JBIM

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Purpose Managers engage in marketing efforts to boost sales and in setting marketing budgets based on current or historical sales. Past studies have overlooked the reciprocal relationship between marketing spending and sales. This study aims to examine the nature of the relationship between sales and marketing expenses in the B2B market. Design/methodology/approach Five hypotheses on the relationship between sales and marketing expenditures were framed. A total of 30 of India’s dyeing firms provided data on revenues, sales (in units) and marketing expenditures over time. The structural vector auto-regressive model and the vector error correction model were fitted to the data. Findings The results show that marketing expenses and sales are related bidirectionally in a sequential way. Furthermore, sales drive the long-term equilibrium relationship to a greater extent than marketing expenditures. Practical implications The findings of this study should assist managers in predicting sales and marketing budgets simultaneously and devising precise marketing strategies and tactics. Originality/value Using econometric models in data-driven research is not a frequent practice in marketing. This study adds value to the body of marketing literature by advancing the theory of the relationship between sales and marketing spending using real-world data and econometric models in the B2B sector.

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Section: Discussionsupporting

confidence: 87%

Section: Theoretical Frameworkmentioning

confidence: 99%