Analysis of effectiveness of marketing spend in IT organizations

Abstract

This paper is a study of the impact of R and D and SG and A spending on the Revenues of a company. Within SG and A expenses, we have focussed on how IT companies go about tracking the investments they make on marketing, advertising and branding programs. To achieve this objective we scanned through the earnings reports of various companies in the Technology sector and tried to see a pattern in the relationship between R and D spending, SG and A and the Revenues earned by a company. For measuring the effectiveness of marketing spending, I interviewed several senior managers in leading IT organizations in India to get their perspective on how the marketing spending is tracked in their organisations.