Impact of marketing expenditure on profitability Case study "Facebook Company"

Session

Management, Business and Economics

Description

The development of globalization and technological progress nowadays has made it necessary for all companies everywhere in the world to follow a certain marketing strategy. Moreover, the environment in which businesses operate is constantly changing and increased competition has made marketing one of the means of differentiating companies from one another. Therefore, this paper is based on the impact of marketing expenses on profitability - Case study Facebook Company from 2000 to 2020. The results show that there is a significant positive correlation between marketing expenses and net profit. The regression analysis shows that the relationship of the variables is important, while the coefficient of determination reinforces the result of the analysis even more. Taking into consideration the negative impact that Facebook has had and policies for breaking privacy or low taxes, we advocate for marketing strategies focused on increasing the reputation and at the same time the net profit of the firm.

Keywords:

Facebook, marketing strategy, net profit.

Proceedings Editor

Edmond Hajrizi

ISBN

978-9951-550-50-5

Location

UBT Kampus, Lipjan

Start Date

29-10-2022 12:00 AM

End Date

30-10-2022 12:00 AM

DOI

10.33107/ubt-ic.2022.423

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Impact of marketing expenditure on profitability Case study "Facebook Company"

UBT Kampus, Lipjan

The development of globalization and technological progress nowadays has made it necessary for all companies everywhere in the world to follow a certain marketing strategy. Moreover, the environment in which businesses operate is constantly changing and increased competition has made marketing one of the means of differentiating companies from one another. Therefore, this paper is based on the impact of marketing expenses on profitability - Case study Facebook Company from 2000 to 2020. The results show that there is a significant positive correlation between marketing expenses and net profit. The regression analysis shows that the relationship of the variables is important, while the coefficient of determination reinforces the result of the analysis even more. Taking into consideration the negative impact that Facebook has had and policies for breaking privacy or low taxes, we advocate for marketing strategies focused on increasing the reputation and at the same time the net profit of the firm.