Therelationship Of Market Structure, Marketing Investment And Corporate Performance

With 20 years rapid development of China's economy, the market competition is increasingly fierce nowadays. Marketing, as a business development strategy, becomes more and more important for enterprises. Marketing activities are one of the main means to build brand image and promote products, therefore, the relationship of marketing activities and enterprise performance has been valued by the researchers for a long time. There are several important issues of this relationship: (1) if marketing activities have an impact on enterprise performance, (2) how to study the quantitative relationship between marketing activities and enterprise performance; (3) what kind of adjustment the enterprises should have under different market environments.In this article, the concept, evaluation method and relationship of market structure, marketing investment and corporate performance were firstly introduced. Following was the literature review, which was consisted of three parts: the relationship of marketing investment and corporate performance; the relationship of market structure and performance; the relationship of market structure, marketing investment and corporate performance. Then the economic analysis of marketing investment and corporate performance relationship under different market structures was given. Based on the literature review and economic analysis, I selected 190 listed companies in 11 different industries in China as the research object. I used five-year financial data of the companies from annual reports 2006-2010 for empirical analysis. The data analysis methods such as descriptive analysis, correlation analysis and linear regression were took in the process. The conclusions were:(1) In China's enterprises, marketing investment has a positive impact on corporate performance;(2) Under different market structure, marketing investment had different impacts on corporate performance. When the market concentration rate was at the middle level, marketing investment had the greatest positive impact on corporate performance.(3) In different industries, marketing investmenthad different impacts on corporate performance.According to the results of empirical research, this paper analyzed the reasons, and provided some feasible advice for enterprises'business development.