Marketing Practices and Profitability of a Company: A Study by Machine Learning Method

Authors

DOI:

https://doi.org/10.21638/11701/spbu18.2016.401

Abstract

This paper addresses the question of existence of relationships between usage of contemporary marketing practices and profitability for companies operating on the Russian market. To address this issue, we utilize a machine learning method that so far was barely present in marketing and management science. The paper is not only promoting a novel research method, it also establishes the relationships between profitability and specific sets of marketing practices. We show that the companies having negative profitability make use of a wide spectrum of marketing practices (with an exception of interactive marketing) and they do not prioritize any specific types of practices. In contrary, profitable companies intensively use interactive marketing and also combine it with IT-marketing and network marketing. This shows that successful companies focus on relationship marketing in a variety of its forms.

Keywords:

marketing practices, profitability, machine learning, classification, typology of marketing practices

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References

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Translation of references in Russian into English

Vetrova T. V. 2014. Сontemporary marketing practices: Development history of the project and directions of adaptation to the Russian conditions. Vestnik S.-Peterburgskogo un-ta. Seriya Menedzhment (1): 117–141.

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Tretyak O. A., Lagutaeva D. A. 2015. Types of marketing practices and financial performance of firms: Results of empirical study. Marketing i marketingovye issledovaniya (6): 412–425.

Tretyak O. A., Rebiazina V. A., Vetrova T. V. 2015. Contemporary marketing practices in Russia: Results of empirical study. Rossiiskii zhurnal menedzhmenta 13 (1): 3–26.

Published

2016-12-27

How to Cite

Lagutaeva, D. A., Tretyak, O. A., & Grigoriev, A. Y. (2016). Marketing Practices and Profitability of a Company: A Study by Machine Learning Method. Russian Management Journal, 14(4), 3–20. https://doi.org/10.21638/11701/spbu18.2016.401

Issue

Section

Theoretical and Empirical Studies

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