Main Article Content
Abstract
This study explores the relationship of promotion and sales strategies with firm financial performance in a comprehensive context. Quantitative methods were used to collect and analyze data from 120 companies in Indonesia. Using a purposive sampling technique, 420 respondents completed a questionnaire highlighting promotional strategy, sales, and financial performance. Variables such as promotional expenditure, creativity, and market responsiveness were measured through statistical analysis, including multiple regression. The findings show that factors such as promotion fund allocation, campaign innovation, product price management, distribution, and customer service play an important role in a company's financial success. This study provides an in-depth understanding of the importance of promotion and sales strategies in achieving optimal financial performance.
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This work is licensed under a Creative Commons Attribution 4.0 International License.
References
- Ajagbe, M. A., Long, C. S., & Solomon, O. (2014). The Impact of Sales Promotion and Product Branding on Company Performance: A Case Study of AIICO Insurance Nigerian PLC. Procedia - Social and Behavioral Sciences, 129, 164–171. https://doi.org/https://doi.org/10.1016/j.sbspro.2014.03.662
- Buil, I., de Chernatony, L., & Martínez, E. (2013). Examining the role of advertising and sales promotions in brand equity creation. Journal of Business Research, 66(1), 115–122. https://doi.org/https://doi.org/10.1016/j.jbusres.2011.07.030
- Chen, S., Song, Y., & Gao, P. (2023). Environmental, social, and governance (ESG) performance and financial outcomes: Analyzing the impact of ESG on financial performance. Journal of Environmental Management, 345, 118829. https://doi.org/https://doi.org/10.1016/j.jenvman.2023.118829
- Daniels, K., Wilkinson, I. F., Young, L., & Lu, S. (Qiang). (2020). Extreme brand love: measuring and modelling the intensity of sports team love. European Journal of Marketing, 54(9), 2195–2221. https://doi.org/10.1108/EJM-12-2018-0878
- Hewage, H. C., Perera, H. N., & De Baets, S. (2022). Forecast adjustments during post-promotional periods. European Journal of Operational Research, 300(2), 461–472. https://doi.org/https://doi.org/10.1016/j.ejor.2021.07.057
- Hultman, M., & Oghazi, P. (2024). On the (in)effectiveness of standardized versus adapted international promotion strategies: Evidence from entrepreneurial firms. Journal of Business Research, 170, 114351. https://doi.org/https://doi.org/10.1016/j.jbusres.2023.114351
- Jang, S. W., & Ahn, W. C. (2021). Financial analysis effect on management performance in the Korean logistics industry. The Asian Journal of Shipping and Logistics, 37(3), 245–252. https://doi.org/https://doi.org/10.1016/j.ajsl.2021.06.003
- Jawahar, I. M., Mohammed, Z. J., & Schreurs, B. (2022). Effects of financial anxiety and employability on emotional exhaustion and performance. Journal of Vocational Behavior, 137, 103761. https://doi.org/https://doi.org/10.1016/j.jvb.2022.103761
- Kaufmann, H. R., Loureiro, S. M. C., & Manarioti, A. (2016). Exploring behavioural branding, brand love and brand co-creation. Journal of Product and Brand Management, 25(6), 516–526. https://doi.org/10.1108/JPBM-06-2015-0919
- Kolbe, D., Frasquet, M., & Calderon, H. (2022). The role of market orientation and innovation capability in export performance of small- and medium-sized enterprises: a Latin American perspective. Multinational Business Review, 30(2), 289–312. https://doi.org/10.1108/MBR-10-2020-0202
- Krishnan, T. V, Feng, S., & Jain, D. C. (2023). Peak sales time prediction in new product sales: Can a product manager rely on it? Journal of Business Research, 165, 114054. https://doi.org/https://doi.org/10.1016/j.jbusres.2023.114054
- Li, Q., Wang, Q., & Song, P. (2021). Third-party sellers’ product entry strategy and its sales impact on a hybrid retail platform. Electronic Commerce Research and Applications, 47, 101049. https://doi.org/https://doi.org/10.1016/j.elerap.2021.101049
- Lin, C., & Bowman, D. (2022). The impact of introducing a customer loyalty program on category sales and profitability. Journal of Retailing and Consumer Services, 64, 102769. https://doi.org/https://doi.org/10.1016/j.jretconser.2021.102769
- Liu, G., Lu, D., & Yang, J. (2023). Innovation for promotion: The effect of executive involvement on inventors’ innovation choice. Journal of Corporate Finance, 80, 102394. https://doi.org/https://doi.org/10.1016/j.jcorpfin.2023.102394
- Liu, H., Zhang, R., Zhou, L., & Li, A. (2023). Evaluating the financial performance of companies from the perspective of fund procurement and application: New strategy cross efficiency network data envelopment analysis models. Energy, 269, 126739. https://doi.org/https://doi.org/10.1016/j.energy.2023.126739
- Liu, Z. (2023). Impact of vehicle purchase tax exemption on electric vehicle sales: Evidence from China’s automotive industry. Energy Strategy Reviews, 49, 101148. https://doi.org/https://doi.org/10.1016/j.esr.2023.101148
- Ma, S., Cui, X., Xiao, X., & Zhao, X. (2022). The impact of photo verification service on sales performance in the peer-to-peer economy: Moderating role of customer uncertainty. Journal of Business Research, 142, 45–55. https://doi.org/https://doi.org/10.1016/j.jbusres.2021.12.021
- Malshe, A., Hughes, D. E., Good, V., & Friend, S. B. (2022). Marketing strategy implementation impediments and remedies: A multi-level theoretical framework within the sales-marketing interface. International Journal of Research in Marketing, 39(3), 824–846. https://doi.org/https://doi.org/10.1016/j.ijresmar.2021.10.002
- Mashur, R., Muhammad, H., Ansir, L., AHP, K. P. A. H. P., & Shandra, B. (2020). Antecedents and consequence of brand management: empirical study of Apple’s brand product. In Journal of Asia Business Studies: Vol. ahead-of-p (Issue ahead-of-print). https://doi.org/10.1108/JABS-01-2019-0030
- McNeill, L. S. (2006). The Influence of Culture on Retail Sales Promotion Use in Chinese Supermarkets. Australasian Marketing Journal (AMJ), 14(2), 34–46. https://doi.org/https://doi.org/10.1016/S1441-3582(06)70059-3
- Ņikitina, T., Lapiņa, I., Ozoliņš, M., Irbe, M. M., Priem, M., Smits, M., Nemilentsev, M., Kajol, K., Singh, R., Paul, J., Ho, K. L. P., Quang, H. T., Miles, M. P., Spaltini, M., Acerbi, F., Pinzone, M., Gusmeroli, S., Taisch, M., Ahmad, F., … Mishra, S. (2022). Information communication technology and financial inclusion of innovative entrepreneurs. Technological Forecasting and Social Change, 8(4), 1003–1011. https://doi.org/https://doi.org/10.1016/j.techfore.2021.120650
- Obadia, C., & Vida, I. (2023). Export marketing strategy and performance: A focus on SMEs promotion. International Business Review, 102229. https://doi.org/https://doi.org/10.1016/j.ibusrev.2023.102229
- Oh, J.-H., & Johnston, W. J. (2023). New evaluation metric for measuring sales training effectiveness. Journal of Business Research, 156, 113458. https://doi.org/https://doi.org/10.1016/j.jbusres.2022.113458
- Panagopoulos, N. G., & Avlonitis, G. J. (2010). Performance implications of sales strategy: The moderating effects of leadership and environment. International Journal of Research in Marketing, 27(1), 46–57. https://doi.org/https://doi.org/10.1016/j.ijresmar.2009.11.001
- Reichstein-Scholz, H., Giroud, A., Yamin, M., & Andersson, U. (2021). Sales to centre stage! Determinants of the division in strategic sales decisions within the MNE. International Business Review, 30(6), 101859. https://doi.org/https://doi.org/10.1016/j.ibusrev.2021.101859
- Rodríguez-García, M. del P., Galindo-Manrique, A. F., Cortez-Alejandro, K. A., & Méndez-Sáenz, A. B. (2022). Eco-efficiency and financial performance in Latin American countries: An environmental intensity approach. Research in International Business and Finance, 59, 101547. https://doi.org/https://doi.org/10.1016/j.ribaf.2021.101547
- Saha, D., Young, T. M., & Thacker, J. (2023). Predicting firm performance and size using machine learning with a Bayesian perspective. Machine Learning with Applications, 11, 100453. https://doi.org/https://doi.org/10.1016/j.mlwa.2023.100453
- Spotts, H. E., Weinberger, M. G., Assaf, A. G., & Weinberger, M. F. (2022). The role of paid media, earned media, and sales promotions in driving marcom sales performance in consumer services. Journal of Business Research, 152, 387–397. https://doi.org/https://doi.org/10.1016/j.jbusres.2022.07.047
- Sun, S., & Liu, T. (2023). Pricing and sales-effort coordination facing free riding behaviors between a brick-and-mortar retailer and a platform store owned by the manufacturer. Transportation Research Part E: Logistics and Transportation Review, 179, 103285. https://doi.org/https://doi.org/10.1016/j.tre.2023.103285
- Twumasi Ankrah, M., Asante, D., Wang, P., Ntiamoah, E. B., & Jiang, Y. (2023). Can the use of the internet improve fish farmers’ financial performance? Evidence from Ghana. Marine Policy, 149, 105494. https://doi.org/https://doi.org/10.1016/j.marpol.2023.105494
- Ullah, A., Pinglu, C., Ullah, S., Zaman, M., & Hashmi, S. H. (2020). The nexus between capital structure, firm-specific factors, macroeconomic factors and financial performance in the textile sector of Pakistan. Heliyon, 6(8), e04741. https://doi.org/https://doi.org/10.1016/j.heliyon.2020.e04741
- Vaidyanathan, R., & Aggarwal, P. (2022). Asymmetric brand alliances: When joint promotions with strong brands hurt. Journal of Business Research, 141, 213–228. https://doi.org/https://doi.org/10.1016/j.jbusres.2021.12.022
- van Ruitenbeek, R. E., Koole, G. M., & Bhulai, S. (2023). A hierarchical agglomerative clustering for product sales forecasting. Decision Analytics Journal, 8, 100318. https://doi.org/https://doi.org/10.1016/j.dajour.2023.100318
- Yang, W., Zhang, J., & Yan, H. (2022). Promotions of online reviews from a channel perspective. Transportation Research Part E: Logistics and Transportation Review, 161, 102697. https://doi.org/https://doi.org/10.1016/j.tre.2022.102697
- Yost, E., Kizildag, M., & Ridderstaat, J. (2021). Financial recovery strategies for restaurants during COVID-19: Evidence from the US restaurant industry. Journal of Hospitality and Tourism Management, 47, 408–412. https://doi.org/https://doi.org/10.1016/j.jhtm.2021.04.012
- Zhang, Y., Hu, X., Yao, G., & Xu, L. (2024). Coupon promotion and inventory strategies of a supplier considering an e-commerce platform’s omnichannel coupons. Journal of Retailing and Consumer Services, 77, 103625. https://doi.org/https://doi.org/10.1016/j.jretconser.2023.103625
- Zhou, C., & Yu, J. (2023). Does it pay to withdraw marketing metrics disclosure? An empirical study of retailers’ cessation of monthly comparable-store sales. Journal of Business Research, 156, 113512. https://doi.org/https://doi.org/10.1016/j.jbusres.2022.113512
References
Ajagbe, M. A., Long, C. S., & Solomon, O. (2014). The Impact of Sales Promotion and Product Branding on Company Performance: A Case Study of AIICO Insurance Nigerian PLC. Procedia - Social and Behavioral Sciences, 129, 164–171. https://doi.org/https://doi.org/10.1016/j.sbspro.2014.03.662
Buil, I., de Chernatony, L., & Martínez, E. (2013). Examining the role of advertising and sales promotions in brand equity creation. Journal of Business Research, 66(1), 115–122. https://doi.org/https://doi.org/10.1016/j.jbusres.2011.07.030
Chen, S., Song, Y., & Gao, P. (2023). Environmental, social, and governance (ESG) performance and financial outcomes: Analyzing the impact of ESG on financial performance. Journal of Environmental Management, 345, 118829. https://doi.org/https://doi.org/10.1016/j.jenvman.2023.118829
Daniels, K., Wilkinson, I. F., Young, L., & Lu, S. (Qiang). (2020). Extreme brand love: measuring and modelling the intensity of sports team love. European Journal of Marketing, 54(9), 2195–2221. https://doi.org/10.1108/EJM-12-2018-0878
Hewage, H. C., Perera, H. N., & De Baets, S. (2022). Forecast adjustments during post-promotional periods. European Journal of Operational Research, 300(2), 461–472. https://doi.org/https://doi.org/10.1016/j.ejor.2021.07.057
Hultman, M., & Oghazi, P. (2024). On the (in)effectiveness of standardized versus adapted international promotion strategies: Evidence from entrepreneurial firms. Journal of Business Research, 170, 114351. https://doi.org/https://doi.org/10.1016/j.jbusres.2023.114351
Jang, S. W., & Ahn, W. C. (2021). Financial analysis effect on management performance in the Korean logistics industry. The Asian Journal of Shipping and Logistics, 37(3), 245–252. https://doi.org/https://doi.org/10.1016/j.ajsl.2021.06.003
Jawahar, I. M., Mohammed, Z. J., & Schreurs, B. (2022). Effects of financial anxiety and employability on emotional exhaustion and performance. Journal of Vocational Behavior, 137, 103761. https://doi.org/https://doi.org/10.1016/j.jvb.2022.103761
Kaufmann, H. R., Loureiro, S. M. C., & Manarioti, A. (2016). Exploring behavioural branding, brand love and brand co-creation. Journal of Product and Brand Management, 25(6), 516–526. https://doi.org/10.1108/JPBM-06-2015-0919
Kolbe, D., Frasquet, M., & Calderon, H. (2022). The role of market orientation and innovation capability in export performance of small- and medium-sized enterprises: a Latin American perspective. Multinational Business Review, 30(2), 289–312. https://doi.org/10.1108/MBR-10-2020-0202
Krishnan, T. V, Feng, S., & Jain, D. C. (2023). Peak sales time prediction in new product sales: Can a product manager rely on it? Journal of Business Research, 165, 114054. https://doi.org/https://doi.org/10.1016/j.jbusres.2023.114054
Li, Q., Wang, Q., & Song, P. (2021). Third-party sellers’ product entry strategy and its sales impact on a hybrid retail platform. Electronic Commerce Research and Applications, 47, 101049. https://doi.org/https://doi.org/10.1016/j.elerap.2021.101049
Lin, C., & Bowman, D. (2022). The impact of introducing a customer loyalty program on category sales and profitability. Journal of Retailing and Consumer Services, 64, 102769. https://doi.org/https://doi.org/10.1016/j.jretconser.2021.102769
Liu, G., Lu, D., & Yang, J. (2023). Innovation for promotion: The effect of executive involvement on inventors’ innovation choice. Journal of Corporate Finance, 80, 102394. https://doi.org/https://doi.org/10.1016/j.jcorpfin.2023.102394
Liu, H., Zhang, R., Zhou, L., & Li, A. (2023). Evaluating the financial performance of companies from the perspective of fund procurement and application: New strategy cross efficiency network data envelopment analysis models. Energy, 269, 126739. https://doi.org/https://doi.org/10.1016/j.energy.2023.126739
Liu, Z. (2023). Impact of vehicle purchase tax exemption on electric vehicle sales: Evidence from China’s automotive industry. Energy Strategy Reviews, 49, 101148. https://doi.org/https://doi.org/10.1016/j.esr.2023.101148
Ma, S., Cui, X., Xiao, X., & Zhao, X. (2022). The impact of photo verification service on sales performance in the peer-to-peer economy: Moderating role of customer uncertainty. Journal of Business Research, 142, 45–55. https://doi.org/https://doi.org/10.1016/j.jbusres.2021.12.021
Malshe, A., Hughes, D. E., Good, V., & Friend, S. B. (2022). Marketing strategy implementation impediments and remedies: A multi-level theoretical framework within the sales-marketing interface. International Journal of Research in Marketing, 39(3), 824–846. https://doi.org/https://doi.org/10.1016/j.ijresmar.2021.10.002
Mashur, R., Muhammad, H., Ansir, L., AHP, K. P. A. H. P., & Shandra, B. (2020). Antecedents and consequence of brand management: empirical study of Apple’s brand product. In Journal of Asia Business Studies: Vol. ahead-of-p (Issue ahead-of-print). https://doi.org/10.1108/JABS-01-2019-0030
McNeill, L. S. (2006). The Influence of Culture on Retail Sales Promotion Use in Chinese Supermarkets. Australasian Marketing Journal (AMJ), 14(2), 34–46. https://doi.org/https://doi.org/10.1016/S1441-3582(06)70059-3
Ņikitina, T., Lapiņa, I., Ozoliņš, M., Irbe, M. M., Priem, M., Smits, M., Nemilentsev, M., Kajol, K., Singh, R., Paul, J., Ho, K. L. P., Quang, H. T., Miles, M. P., Spaltini, M., Acerbi, F., Pinzone, M., Gusmeroli, S., Taisch, M., Ahmad, F., … Mishra, S. (2022). Information communication technology and financial inclusion of innovative entrepreneurs. Technological Forecasting and Social Change, 8(4), 1003–1011. https://doi.org/https://doi.org/10.1016/j.techfore.2021.120650
Obadia, C., & Vida, I. (2023). Export marketing strategy and performance: A focus on SMEs promotion. International Business Review, 102229. https://doi.org/https://doi.org/10.1016/j.ibusrev.2023.102229
Oh, J.-H., & Johnston, W. J. (2023). New evaluation metric for measuring sales training effectiveness. Journal of Business Research, 156, 113458. https://doi.org/https://doi.org/10.1016/j.jbusres.2022.113458
Panagopoulos, N. G., & Avlonitis, G. J. (2010). Performance implications of sales strategy: The moderating effects of leadership and environment. International Journal of Research in Marketing, 27(1), 46–57. https://doi.org/https://doi.org/10.1016/j.ijresmar.2009.11.001
Reichstein-Scholz, H., Giroud, A., Yamin, M., & Andersson, U. (2021). Sales to centre stage! Determinants of the division in strategic sales decisions within the MNE. International Business Review, 30(6), 101859. https://doi.org/https://doi.org/10.1016/j.ibusrev.2021.101859
Rodríguez-García, M. del P., Galindo-Manrique, A. F., Cortez-Alejandro, K. A., & Méndez-Sáenz, A. B. (2022). Eco-efficiency and financial performance in Latin American countries: An environmental intensity approach. Research in International Business and Finance, 59, 101547. https://doi.org/https://doi.org/10.1016/j.ribaf.2021.101547
Saha, D., Young, T. M., & Thacker, J. (2023). Predicting firm performance and size using machine learning with a Bayesian perspective. Machine Learning with Applications, 11, 100453. https://doi.org/https://doi.org/10.1016/j.mlwa.2023.100453
Spotts, H. E., Weinberger, M. G., Assaf, A. G., & Weinberger, M. F. (2022). The role of paid media, earned media, and sales promotions in driving marcom sales performance in consumer services. Journal of Business Research, 152, 387–397. https://doi.org/https://doi.org/10.1016/j.jbusres.2022.07.047
Sun, S., & Liu, T. (2023). Pricing and sales-effort coordination facing free riding behaviors between a brick-and-mortar retailer and a platform store owned by the manufacturer. Transportation Research Part E: Logistics and Transportation Review, 179, 103285. https://doi.org/https://doi.org/10.1016/j.tre.2023.103285
Twumasi Ankrah, M., Asante, D., Wang, P., Ntiamoah, E. B., & Jiang, Y. (2023). Can the use of the internet improve fish farmers’ financial performance? Evidence from Ghana. Marine Policy, 149, 105494. https://doi.org/https://doi.org/10.1016/j.marpol.2023.105494
Ullah, A., Pinglu, C., Ullah, S., Zaman, M., & Hashmi, S. H. (2020). The nexus between capital structure, firm-specific factors, macroeconomic factors and financial performance in the textile sector of Pakistan. Heliyon, 6(8), e04741. https://doi.org/https://doi.org/10.1016/j.heliyon.2020.e04741
Vaidyanathan, R., & Aggarwal, P. (2022). Asymmetric brand alliances: When joint promotions with strong brands hurt. Journal of Business Research, 141, 213–228. https://doi.org/https://doi.org/10.1016/j.jbusres.2021.12.022
van Ruitenbeek, R. E., Koole, G. M., & Bhulai, S. (2023). A hierarchical agglomerative clustering for product sales forecasting. Decision Analytics Journal, 8, 100318. https://doi.org/https://doi.org/10.1016/j.dajour.2023.100318
Yang, W., Zhang, J., & Yan, H. (2022). Promotions of online reviews from a channel perspective. Transportation Research Part E: Logistics and Transportation Review, 161, 102697. https://doi.org/https://doi.org/10.1016/j.tre.2022.102697
Yost, E., Kizildag, M., & Ridderstaat, J. (2021). Financial recovery strategies for restaurants during COVID-19: Evidence from the US restaurant industry. Journal of Hospitality and Tourism Management, 47, 408–412. https://doi.org/https://doi.org/10.1016/j.jhtm.2021.04.012
Zhang, Y., Hu, X., Yao, G., & Xu, L. (2024). Coupon promotion and inventory strategies of a supplier considering an e-commerce platform’s omnichannel coupons. Journal of Retailing and Consumer Services, 77, 103625. https://doi.org/https://doi.org/10.1016/j.jretconser.2023.103625
Zhou, C., & Yu, J. (2023). Does it pay to withdraw marketing metrics disclosure? An empirical study of retailers’ cessation of monthly comparable-store sales. Journal of Business Research, 156, 113512. https://doi.org/https://doi.org/10.1016/j.jbusres.2022.113512