How Marketing Communications Correlates With Business Performance

Abstract

Companies use different marketing activities to communicate with the environment. These decisions are often a result of past experiences, habits or a certain influences. Measuring the efficiency of a communication mix as well as analyzing the effect of using a specific marketing communication activity on different business performance determinants are usually neglected. This paper might contribute to this problem as it focuses on the correlation between marketing communication activities and the business performance of a company through two aspects: a) the frequency of using a specific marketing communication activity and its correlation to business performance determinants; b) the correlation between the number of marketing communication activities that a company uses and its business performance determinants. We found statistically significant relationships (positive and negative) among some variables. The results helped us interpret which activity a company should use in order to increase customer loyalty, which activity helps raise net profit, and how many marketing communication activities should a company employ to optimise business performance. With this, managers have obtained basic guidelines when building their marketing communication mix.