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Relationships between Innovation Capabilities, Business Performance, Marketing Performance and Financial Performance: Marketing Capability

Marketing Capability

16 articles were reviewed on marketing capabilities. It was pointed that function of marketing requires complete market knowledge, create and provide valuable and excellent product and service towards their target customer, Weerawardena (2003). To have a better and longer competitive advantage and profit, than company need to highly respond to the need of market and predict the market situation proactively. According to Weerawardena (2003), marketing capabilities is an indispensible factor that is based in innovative capabilities of a company which can generate growth and profit via distinctive innovation capabilities.
According to Liu et al. (2009), it was said that tangible and intangible resources and capabilities are important in marketing capabilities for marketing operation, including brand, sales, channel and service to provide various marketing service.

Financial Performance- relationship with Sales Value, Growth & Gross Profit

Financial performances refer to factors of sales value, sales growth and gross profit or profitability. We have reviewed 12 journals on financial performances which suggested the market performance positively impacts the financial performances. Whereas business performance can be divided into two groups which is one financial and second non-financial. Financial performance refers to the extent to which the organization performs in relative sales value, sales growth and gross profit / profitability, (Li.L, 2000).
According to the study carried out by Hakan Kitapci, Bulent Aydin and Vural Celik, the financial performance was represented by the sales value, and general profit of the organization. (Kitapci, Aydin, & Celik, 2011). As marketing growth and sales growth directly contribute to the profits of the organization through increase in price premiums and sales revenues, by decreasing marginal unit costs thus leading to significant overall profits (Wei & Wang, 2005).
According to E.T.G.Wang and H.L.Wei, firm’s sales will be affected by product innovation (Wei & Wang, 2005). According to the prior study done by William and Michael, sales growth is the most significant growth variable affecting financial performance in the actual industries examined (William & Michael, 1995).

This post was written by , posted on November 11, 2013 Monday at 11:08 am