Finding the marketing sweet spot: when and where it works best

Purpose This study investigates the relationship between marketing intensity (MI), research and development (R&D) intensity and firm performance (FP) in the pharmaceutical sector in India. Specifically, it explores R&D intensity, listing status and product complexity as potential moderators in shaping the relationship between MI and FP. Design/methodology/approach Using a sample of 948 Indian pharmaceutical firms from 2010 to 2024, this study applies a generalized method of moments (GMM) estimator to test the main effects and moderation effects. Findings The results indicate strong linkages between MI and FP. Specifically, it has a strong positive impact on firms operating in a moderately R&D-intensive sector, while the relationship becomes negative in extremely low or very high R&D sectors. Furthermore, R&D exhibits threshold effects, documenting insignificant relationships in the short term and positive and significant effects in the long run. Research limitations/implications The study findings are based on data from Indian pharmaceutical firms, which may limit their generalizability to other sectors. Future research should explore the cross-sectoral and international settings. Practical implications Managers can enhance FP by aligning R&D and marketing efforts based on product complexity to boost marketing effectiveness. Social implications The strategic integration of R&D and marketing in the pharmaceutical sector can improve pharmaceutical firms' efficiency, benefiting society at large. Originality/value This study reveals an inverted U-shaped relationship between MI and FP. For listed firms, MI initially boosts FP but turns negative beyond the optimal levels. Medium-R&D products benefit from MI, while complex products show no MI gains, establishing complementarity with clear boundary conditions for our sampled firms.