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Marketing is all about taking money from customers (an application of Tobit model)

Author

Listed:
  • Hasan, Syed Akif
  • Subhani, Muhammad Imtiaz
  • Osman, Ms. Amber
Abstract
One of the key dimensions of business is marketing and when we say marketing we talk about creating more revenue every second. Sales are an important key to success for revenue generation and for this purpose various marketing strategies have been developed. Sales are always driven by customers/consumers, and this thought is in practice since the inception of the concept of business. This paper is an appreciation on the comprehension of various marketing strategies (i.e. Single Segment Strategy, Differentiated Strategy, Un Differentiated Strategy, Product Development, Establishing The Brand, Innovation strategy, Market Growth Shares, Porter Cost Leadership, Market Expansion, Pricing, Diversification), which only aim at generating revenues while proposing the Tobit model to assess the relationships of outlined various marketing strategies with the revenue generation (sales of the products/ services). The comprehensive findings of this research reveals that all strategic means are important for generating revenues in relevance to the products/ services which are being offered and confirms that all outlined marketing strategies are designed and configured with the intent to grab the money from every pocket, but single segment strategy and market growth share strategy matter the most in this connections. Whereas, the Tobit model is revealed as an appropriate and robust model to predict the outlined relationship.

Suggested Citation

  • Hasan, Syed Akif & Subhani, Muhammad Imtiaz & Osman, Ms. Amber, 2011. "Marketing is all about taking money from customers (an application of Tobit model)," MPRA Paper 34762, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:34762
    as

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    File URL: https://mpra.ub.uni-muenchen.de/34762/1/MPRA_paper_34762.pdf
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    References listed on IDEAS

    as
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    4. John Rust, 1997. "Using Randomization to Break the Curse of Dimensionality," Econometrica, Econometric Society, vol. 65(3), pages 487-516, May.
    5. McDonald, John F & Moffitt, Robert A, 1980. "The Uses of Tobit Analysis," The Review of Economics and Statistics, MIT Press, vol. 62(2), pages 318-321, May.
    6. Greene, William H, 1981. "On the Asymptotic Bias of the Ordinary Least Squares Estimator of the Tobit Model," Econometrica, Econometric Society, vol. 49(2), pages 505-513, March.
    7. Olsen, Randall J, 1978. "Note on the Uniqueness of the Maximum Likelihood Estimator for the Tobit Model," Econometrica, Econometric Society, vol. 46(5), pages 1211-1215, September.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Daranrat Jaitiang & Wen-Chi Huang & Shang-Ho Yang, 2021. "Does Income Inequality Exist among Urban Farmers? A Demonstration of Lorenz Curves from Northern Thailand," Sustainability, MDPI, vol. 13(9), pages 1-16, May.
    2. Hasan, Syed Akif & Subhani, Muhammad Imtiaz & Osman, Ms. Amber, 2012. "Spending patterns in youth," MPRA Paper 37657, University Library of Munich, Germany.

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    More about this item

    Keywords

    Marketing Strategies; Sales; Customer Relationship; Marketing; Revenue; Tobit Model;
    All these keywords.

    JEL classification:

    • C02 - Mathematical and Quantitative Methods - - General - - - Mathematical Economics
    • M30 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - General
    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics

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