Prolonged Effect of Communication Strategies of Marketing and Sales in Sector Indicators of Bars

Abstract

The bar industry stands out due to short-term revenue cycles and high dependence on a country's economic situation. In Brazil, the reason for the high mortality of companies in this sector is related to the discernment of what works for organization growth. The impact of marketing strategies on companies‟ revenue can be positive, negative, or unimpressive, with some of them doing better than others, both in current and lag time. However, there are also external variables that influence companies: sector inflation rate, the holidays, and the rains. To investigate factors influencing the sales at bars, a research study with econometric modeling was conducted from longitudinal data of 13 consecutive months of sales at each bar. We used Generalized Estimating Equations to generate two models: one with only the recent effects of the variables and another one with current and lagged effects within two months after the implementation of strategies and sectorial indicators. The result showed that the negative effect of inflation rate on companies‟ revenue is almost as strong as the sum of all significant marketing strategies and when one considers the delay of variables, leafleting has a severe negative effect on revenues. We conclude that the best ways to increase revenue in bars within three months are publications on social networks, sales promotion, and events.