Long-term marketing effectiveness in Turkey: Does it differ from that in the US and Western Europe?

Abstract

Companies in Turkey aim to grow their market performance, but very few know how much additional sales or profits are generated by their marketing spending. This study is the first to quantify long-term marketing effectiveness in Turkey and compare it with that in the US and Western Europe. Our results reveal that companies in Turkey receive about 8 TL in revenues for every 1 TL spent on marketing. Compared to matched companies in mature markets, their marketing efficiency is only 69%. Across industries, industrial and automobile score highest in marketing efficiency, and textile and retail the lowest. We conclude with a research agenda on measuring and improving marketing efficiency in Turkey and other emerging markets

Keywords

• marketing efficiency, econometrics and time series, unit root, autoregressive distributed lag model, long-term, Turkey “More money is wasted in marketing than in any other human activity”

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