Abstract
The relationship between marketing mix composition and SBU performance is one of the most fundamental issues in marketing management. While the impact of environmental variables such as business type and stage of the product life cycle on the marketing mix/SBU performance relationship have been studied in depth, other environmental variables from the strategic management and industrial/organizational economics literature have not. This study empirically assesses the impact of several environmental variables on the marketing mix composition/SBU performance relationship using PIMS, a cross-industry, cross-firm database. The study shows that several environmental variables that have received little attention in the marketing literature, such as level of industry imports and industry concentration, have a significant impact on the relationship between marketing mix composition and SBU performance, while commonly used variables such as the product life cycle and business type do not significantly affect the relationship.
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