Marketing Effectiveness in Economic Contraction: An Analysis on Passenger Car Market

Proceedings of The 4th International Conference on Applied Research in Business, Management and Economics

Year: 2022

DOI: https://www.doi.org/10.33422/4th.bmeconf.2022.03.05

[Fulltext]

Marketing Effectiveness in Economic Contraction: An Analysis on Passenger Car Market

Nimet Uray, Fusun Ulengin , Burc Ulengin, Hidayet Beyhan ,Kubra Sirkeci and Gizem Kaya

ABSTRACT: 

The economic environment is one of the external marketing environment elements that affect the marketing performance of companies. Economic changes or fluctuations are complicated and influence different decision-makers by changing consumer demand for specific products/services, market structures, product life cycles, and domestic and foreign competition intensity. Such changes have to encourage the companies to arrange marketing strategies and actions to respond most efficiently and competitively to these changes. The aim of this study is to analyze the impact of “down economic times” on the performance of companies in general and the effectiveness of marketing strategies in particular. This study covers three different types of variables, including marketing activities ( price, advertising, and distribution), performance-related variable (sales volume), and macroeconomic variables (GDP, interest rate, consumer price index) as the indicator of economic contraction. The data related to the first group of variables consists of data about the ten models of two different car companies acting as leader and follower in terms of the market share in the B and C segment in the Turkish passenger car market. The data are obtained monthly from both those companies and two other external resources over nine years (2010-2018). Due to the fact that the data is based on an unbalanced panel data set, the model is estimated using Fixed Effect Panel EGLS.

keywords: marketing activities, economic contractions, performance, sales, passenger car segment.