Relationship between Marketing Strategies and Firms’ Financial Performance in Food Producers Sector of Pakistan

Abstract

Study reflects the effect of marketing strategies on the firm’s financial performance. Marketing strategy is not just evaluating the external and internal factors, but it also needs to be financed efficiently to develop an attractive product and distribution channel, and to hire an effective sales team to generate business support for the firm. The study incorporates secondary data of 14 firms of Food Producers Sector for the period of five year from 2009 to 2013. The study compared low marketing cost firms and high marketing cost firms in the terms of their sales revenue and financial performance. The findings of this research paper contribute to marketing theories, by using the marketing expense as a variable to know the influence on financial performance of a firm. Overall descriptive and econometric results suggest that firms can achieve financial performance through appropriate marketing strategy. The study is a contribution in the field of marketing research and provides managers useful insight in their own strategic decisions.

Keywords: Financial Performance, Low and High Marketing Costs Firms, Sales Revenue, Selling and Marketing Expenses.

JEL Classification: M31, G39