Impact of Advertising and Sales Promotion Expenses on the Sales Performance of Indian Telecommunication Companies

Objectives: To investigate the relationship between two marketing communication activities mainly advertising and sales promotion on the sales performance of Telecom companies. Methods/Statistical Analysis: Data related to Advertising and Sales promotions expenses of 3 telecom companies for the past 10 years was collected from their annual reports. Multiple regression analysis is used for modelling the relationship between the dependent variable i.e. Net sales and the independent variables of Advertising and Sales promotion activities. Findings: The findings suggest that there exists a significant predictive relationship of advertising spend and sales promotion spends with sales performance of Indian Telecom Companies. The study also proposes a significant model with good predictive power for future use for managers. Application/Improvements: The study will help the telecom operators find out if the spend on advertising, sales promotion and other marketing activity is leading to revenue generation. It will also help them decide an optimal marketing communication mix which will result in better sales performance and thereby increase revenues for the company.