Marketing Mix and Brand Sales in Global Markets: Examining the Contingent Role of Country-Market Characteristics

Abstract

Marketing products globally is challenging due to the diverse nature of markets. We use market heterogeneity, unbranded competition, resource and infrastructure availability, and sociopolitical governance as country-market characteristics that distinguish between developed and emerging countries. We investigate their moderating role on the relationship between elements of the marketing mix and brand sales. We provide evidence, from a hierarchical linear model and a panel data set of brands from 14 emerging and developed markets that account for 62% of the global GDP, that country-market characteristics moderate the relationship between the complete set of marketing mix elements and brand sales performance asymmetrically. While distribution and price have the largest impact in emerging and developed countries respectively; product innovation and advertising have significantly larger impacts in emerging markets relative to developed countries. These finding highlights the importance of contingency view of marketing strategy in global markets.

Keywords: international marketing strategy, brand sales, performance, hierarchical linear model, emerging markets, marketing mix elasticity

JEL Classification: C12, C33, L22, M30, M31, M37, M39, O12, O57