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Marketing mix and brand sales in global markets: Examining the contingent role of country-market characteristics

Author

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  • S Cem Bahadir

    (Faculty of Business, Ozyegin University, Istanbul, Turkey)

  • Sundar G Bharadwaj

    (Terry School of Business, University of Georgia, Athens, USA)

  • Rajendra K Srivastava

    (Lee Kong Chian School of Business, Singapore Management University, Singapore)

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.

Suggested Citation

  • S Cem Bahadir & Sundar G Bharadwaj & Rajendra K Srivastava, 2015. "Marketing mix and brand sales in global markets: Examining the contingent role of country-market characteristics," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 46(5), pages 596-619, June.
    • Handle: RePEc:pal:jintbs:v:46:y:2015:i:5:p:596-619
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    Citations

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    Cited by:

    1. Sinha, Mona & Sheth, Jagdish, 2018. "Growing the pie in emerging markets: Marketing strategies for increasing the ratio of non-users to users," Journal of Business Research, Elsevier, vol. 86(C), pages 217-224.
    2. Sharma, Amalesh & Soni, Mauli & Borah, Sourav Bikash & Saboo, Alok R., 2020. "Identifying the drivers of luxury brand sales in emerging markets: An exploratory study," Journal of Business Research, Elsevier, vol. 111(C), pages 25-40.
    3. Omar Vila & Sundar Bharadwaj & S. Bahadir, 2015. "Exploration- and Exploitation-Oriented Marketing Strategies and Sales Growth in Emerging Markets," Customer Needs and Solutions, Springer;Institute for Sustainable Innovation and Growth (iSIG), vol. 2(4), pages 277-289, December.
    4. Verdiana Giannetti & Gaia Rubera, 2020. "Innovation for and from emerging countries: a closer look at the antecedents of trickle-down and reverse innovation," Journal of the Academy of Marketing Science, Springer, vol. 48(5), pages 987-1008, September.
    5. Shaheer, Noman & Chen, Yu & Kim, Hoik & Li, Sali, 2024. "Disguise or disclose? How identities of individual entrepreneurs on digital platforms influence their international success," Journal of International Management, Elsevier, vol. 30(2).
    6. Pyper, Keith & Doherty, Anne Marie, 2022. "Employing brand governance mechanisms with export channel partners: What are the performance consequences and contingent effects?," International Business Review, Elsevier, vol. 31(5).
    7. Wang, Tao & Gao, Jie & Jia, Yu & Wang, Cheng Lu, 2022. "The double-edged sword effect of adaptation strategy on performance: The mediation of legitimacy and synergy," Journal of Business Research, Elsevier, vol. 139(C), pages 448-456.
    8. Estrin, Saul & Meyer, Klaus E. & Pelletier, Adeline, 2018. "Emerging Economy MNEs: How does home country munificence matter?," Journal of World Business, Elsevier, vol. 53(4), pages 514-528.
    9. Angulo-Ruiz, Fernando & Pergelova, Albena & Cheben, Juraj & Angulo-Altamirano, Eladio, 2016. "A cross-country study of marketing effectiveness in high-credence services," Journal of Business Research, Elsevier, vol. 69(9), pages 3636-3644.
    10. Insik Jeong & Jong-Ho Lee & Eunmi Kim, 2019. "Determinants of brand localization in international markets," Service Business, Springer;Pan-Pacific Business Association, vol. 13(1), pages 75-100, March.
    11. G. Tomas M. Hult & Forrest V. Morgeson III & Udit Sharma & Claes Fornell, 2022. "Customer satisfaction and international business: A multidisciplinary review and avenues for research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(8), pages 1695-1733, October.
    12. Pyper, Keith & Marie Doherty, Anne & Gounaris, Spiros & Wilson, Alan, 2022. "A contingency-based approach to the nexus between international strategic brand management and export performance," Journal of Business Research, Elsevier, vol. 148(C), pages 472-488.
    13. S. Arunachalam & S. Cem Bahadir & Sundar G. Bharadwaj & Rodrigo Guesalaga, 2020. "New product introductions for low-income consumers in emerging markets," Journal of the Academy of Marketing Science, Springer, vol. 48(5), pages 914-940, September.
    14. Bernhard Swoboda & Carolina Sinning, 2021. "Endorsement of Global Product Brands by Global Corporate Brands – A Consumer Perspective Across Nations," Management International Review, Springer, vol. 61(4), pages 563-598, August.
    15. N.N. Kerti Yasa & G.N. A.J. Widagda & D. Asih & N.L. Wayan Sayang Telagawathi & G.A. Ketut Giantari & Made Setini & Endi Rekarti, 2020. "The Business Performance of Culinary Sector: A Study of SMEs Sector in Bali," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(4), pages 184-196.
    16. Martin Heinberg & H Erkan Ozkaya & Markus Taube, 2017. "The influence of global and local iconic brand positioning on advertising persuasion in an emerging market setting," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 48(8), pages 1009-1022, October.
    17. Khan, Huda, 2020. "Is marketing agility important for emerging market firms in advanced markets?," International Business Review, Elsevier, vol. 29(5).
    18. Jiang, Xiaoxian & Jin, Ruijie & Gong, Min & Li, Mingzhu, 2022. "Are heterogeneous customers always good for iterative innovation?," Journal of Business Research, Elsevier, vol. 138(C), pages 324-334.
    19. van Ewijk, Bernadette J. & Gijsbrechts, Els & Steenkamp, Jan-Benedict E.M., 2022. "What drives brands’ price response metrics? An empirical examination of the Chinese packaged goods industry," International Journal of Research in Marketing, Elsevier, vol. 39(1), pages 288-312.

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