Marketing Spend Strategies: Driving Financial Performance in the Corporate Landscape – A Study of Four Prime Sectors of India

Abstract

This study explores the relationship between marketing expenditures and the financial performance of companies across four prominent sectors in India. Utilizing a longitudinal research design, the study investigates trends and patterns over an extended period to provide a comprehensive analysis. Data on marketing expenditure, Net Profit Margin, return on net worth, return on capital employed, and Return on Assets was collected from the annual reports of 60 companies spanning the Automobile, Consumer Food, IT Services & Consulting, and Retailing sectors. The findings reveal a positive correlation between marketing expenditure and key financial metrics, including net profit margin, return on net worth, return on capital employed, and Return on Assets. These results underscore the significance of strategic marketing investments in driving overall financial performance within the corporate landscape.