Study on the Impact of Marketing Expenses on the Operational Performance of Pharmaceutical Companies: A Case Study of CR Sanjiu Pharmaceutical Co., Ltd.
DOI:
https://doi.org/10.54097/fbem.v10i1.10372Keywords:
Marketing expenses, Financial performance, Non-financial performance.Abstract
The role of marketing strategies in enterprise operations management has gained increasing attention from business operators and academic experts. In the Chinese pharmaceutical industry, particularly in the field of traditional Chinese medicine, the issue of product homogeneity is prominent. Developing effective marketing strategies helps companies succeed in fierce market competition and steadily increase their market share. Currently, Chinese pharmaceutical companies generally allocate a significant portion of their budget to marketing expenses. Researching the relationship between marketing expenses and business performance helps companies allocate their marketing budget more effectively and achieve better returns. China Resources (CR) Sanjiu Pharmaceutical Co., Ltd., a well-known company in the field of traditional Chinese medicine, has invested more in marketing expenses compared to the industry average. However, in recent years, the company's operational performance has been unsatisfactory. It is worth exploring the reasons why the marketing expenses have not resulted in corresponding improvements in business performance.
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