The Impact of Marketing Expenditures on Economic Performance: The Case of Agricultural Processed Products Industry
Management of Innovative Business and Education Systems Transactions: International Journal, 12(1), 186-199 (2018)
14 Pages Posted: 13 May 2019
Date Written: 2018
Taking under consideration the high importance of primary sector for the Greek economy, the present study combines quantitative and qualitative research in order to examine the effectiveness of marketing expenditures on the profitability of Greek agricultural processed products industry. The sample is consisted of 163 firms of the fruit and vegetables processing industry that report economic data for the 6 year period from 2010 to 2015. The results of the quantitative research reveal that marketing expenditures (packaging, advertising, participation in trade fairs) have significantly positive influence on the economic performance of the firms of the sector. Qualitative research confirms this finding and further highlights packaging as the most important marketing element, since it attracts consumers at selling point. International trade shows also proved to be crucial for exporting companies in winning new customers and as a consequence lead to increased profitability. The results of this study could help all the firms of this sector to better understand the way marketing can affect their economic performance and could also give advice and ideas about their future decisions in order to exploit all the opportunities that they may have, as well as to be better prepared to face any threats and solve any problems.
Keywords: Marketing Expenditures; Agricultural Products Industry; Economic Performance; Profitability
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