How does marketing focus influence stock market performance of corporates?

Abstract

Proponents of efficient market theory attributes stock price of any company to range of structural factors which can be categorized into fundamental and technical inputs. This school of thought hypothesizes that public perception and sentiments may have implication on the share price, but these effects are only temporary in nature and stock price will revert back to itsintrinsic value dictated by the underlying fundamentals. But is this true hypothesis under all circumstances and conditions? Or is there empirical evidence to suggest perception and sentiment towards any brand or company is a driver of market capitalization in the long term? The core question we would try to answer through this study is whether there is a positive correlation between marketing campaigns and stock prices. Assuming we are able to establish a positive correlation between the two, we would further try to explore the nature of a successful marketing strategy which would boost the stock price in a permanent time-frame.