Literature Review

Bacholars in
Business
Administration

Jawad Ul hassan
16th January,2024
Introduction
● The correlation between advertising and sales performance
ADVERTISING:Advertising is a marketing tactic involving paying for space to
promote a product, service, or cause, with the goal of reaching people most likely
to be willing to pay for a company's products or services.( By Shopify Staff)

Advertisements come in various forms, such as copy, interactive video, and

native advertising, which is designed to match the environment in which it is
placed.(https://www.adjust.com/glossary/advertisement/)

SALES PERFORMANCE:Sales performance in marketing refers to a results-

driven approach where advertisers pay only when specific actions or outcomes
are achieved, such as clicks, leads, sales, or other desired customer behaviors.
This approach is known as performance marketing, which is a comprehensive
strategy where advertisers pay for specific actions like sales, leads, or click.
(https://improvado.io/blog/what-is-performance-marketing).

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The Correlation between Advertising and Sales
Performance.
The correlation between advertising and sales performance is a complex and
sometimes subtle relationship. Research suggests that paid and earned media
can have a positive influence on sales performance, while excessive sales
promotion activity may have a negative effect.(Michelle F. Weinberger Article
November 2022)

It is important to carefully measure the impact of advertising on sales

performance, as success in marketing can be measured in various ways, such as
increased brand awareness, website traffic, lead generation, and conversion
rates.(https://www.simdure.com/insights/what-is-the-correlation-between-sales-
and-marketing/) November 4th, 2023

Small-business owners want to measure the impact of advertising on sales

performance. Knowing which ads drive sales helps owners focus their advertising
budgets on promotions that bring the greatest return on investment. Successful
advertisers use several ways to track the relationship between advertising and sales
performance.

Key Points:

Survey Customers

Track Promotions

Build Brand Awareness

("Charlotte Business Journal": Bea Quirk; May 2008)

there is either no relationship or a very weak relationship between advertising

and sales are especially controversial because they run contrary to the
common belief that advertising is the key element of changes in sales. This
article clarifies the nature of the relationship by focusing on some overlooked
conceptual issues relating to causality, non-optimization, and demand and

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market conditions.(Aaker, David A., James M. Carman and Robert Jacobson
1982. "Modeling Advertising-Sales Relationships).

Conclusion:
Therefore, understanding the correlation between advertising and sales
performance requires a nuanced approach, taking into account various factors
such as the type of advertising, market conditions, and consumer behavior.