The effect of marketing expenses on car sales – an empirical analysis

¹ “Gheorghe Asachi” Technical University, Iasi, Romania, brindusa.tudose@tuiasi.ro
² “Gheorghe Asachi” Technical University, Iasi, Romania, lidia.alexa@tuiasi.ro

^* Corresponding author: brindusa.tudose@tuiasi.ro

Abstract

The paper assesses empirically the relationship between marketing expenditures and sales in a highly competitive industry, namely automotive, by analyzing the marketing expending of Automobile Dacia S.A. The first part of the paper presents the state-of-the-art and discusses the studies previously conducted which focus on the structure, dynamic and the impact of marketing expenses, while the second part consists in an empirical analysis conducted on Automobile Dacia S.A. marketing spending. The results of the study show that the company managed to increase its’ market share by adopting differentiated marketing for each geographical area. Although the research revealed that the allocation percentage from sales for marketing spending is relatively low (5-6%), the analysis conducted on the cost per unit sold reveals a share of 3% on marketing spending.