Comparative industrial advertising: The content and frequency

Comparative advertising is the pratice of comparing two or more named or unnamed products in an advertisement. The purpose of this study was to examine the use of comparative advertising in widely circulated industrial publications. The study examined approximately 2100 full-page advertisements in major trade publications for the years 1970, 1975, and 1980. It was found that comparative advertising is not the dominant format for industrial journal advertising. Further, there was a significant decrease in the use of comparative advertising from 1975 to 1980. Nevertheless, when industrial advertisers use comparative advertising, they tend to rely more frequently on implied comparisons rather than on the more aggressive, strictly comparative format. Also, industrial marketers seem to be more inclined to stress product features rather than price, distribution, or promotion when using comparative advertising.     

Developing better industrial advertising

This paper reports on various factors that should be applied by industrial advertisers in order to improve their advertising effort. Topics on setting objectives, developing copy, designing the layout, and selecting media are covered in an applications-oriented way. The result is a concise approach of how industrial advertising can be more effective.     

Successful industrial advertising campaigns

This study investigated the correlation of seven hypothesized factors to outcomes of industrial advertising campaigns. It is based on a survey of advertising agency executives and advertising executives of corporations. The results indicate that the correlates of successful industrial advertising campaigns vary according to the intended objectives of a campaign: awareness, attitude, and sales.     

Women in industrial advertisements

This is one of the first studies to analyze the way in which women are portrayed in industrial advertising. It concludes that the use of sex is not a major selling strategy and that, with one exception, women's role in industrial life is accurately reflected.     

Predicting industrial ad readership

This study examined the effect of visual and psycholinguistic elements (such as picture size and the number of adjectives in the headline) on industrial advertisement readership. Multiple regression techniques were used to analyze the data, which were obtained from AD-CHART. AD-CHART is a research firm which specializes in the measurement of industrial ad readership. The analyses showed that visual and psycholinguistic elements are better predictors of industrial advertising readership than more complicated models.     

A sales mix model for effective industrial selling

The purpose of this article is to focus on one aspect of the marketing mix for industrial firms. Specifically, the control of promotion centers on the promotional mix, which includes personal selling, advertising, and sales promotion. The personal sales mix model (Figure 1) highlights those factors that are controllable by the industrial sales representative. Also, the uncontrollables involved in industrial selling are discussed. An understanding of the personal sales mix model should aid industrial marketers in satisfying buyer's needs through effective selling.     

Using humor in the industrial selling process

Humor is an oft used promotional tool in advertising, and the question naturally arises as to whether humor can also be designed to accomplish specific goals in the industrial selling process. In this article, principles of humor are applied to the buyer/seller process, with particular reference to the steps of the sale. The judicious use of humor by the industrial salesperson can enhance the sales presentation and favorably influence the overall buyer/seller relationship, provided the salesperson has adequate knowledge of the capabilities and limitations of humor.     

Does purely predatory advertising exist?

"Purely predatory advertising" has been defined as advertising which redistributes market share but does not affect market demand. Purely predatory advertising is commonly assumed in the industrial economics literature; but its existence is an empirical question. Since cigarette advertising is widely considered to epitomize purely predatory advertising, we analyze firm level panel data for the United States cigarette industry to study the question of existence using an econometric procedure which corrects for autocorrelation and contemporaneous correlation. Statistical tests support the hypothesis that cigarette advertising is purely predatory.     

Is industrial advertising sexist?

Industrial advertising has been heavily criticized for its sexist portrayal of women. This article reports the results of an analysis of nearly 5,000 advertisements which show an improving depiction of women. The incidence of sexist industrial advertising is declining.     

The economics of advertising: Where's the data?

Economists accept the importance of advertising to firm rivalry and economic performance, but data limitations have frustrated empirical research. This paper addresses that frustration and compares sources of advertising data. The paper concludes that data provided by a private vendor on measured-media consumer advertising represents the best choice, but involves substantial effort to link it to the Census industrial classification system. The authors do this for 284 manufacturing industries for Census years 1967 and 1982. Comparisons of industry advertising levels and advertising-to-sales ratios are given. Relative advertising levels and intensities have remained remarkably stable over the 15 year period.     

Beer Advertising and Marketing Update: Structure,Conduct, and Social Costs

Beer advertising is a topic that has frequently attracted the attention of industrial organization economists. This update reviews major events, data trends, and research for each of three issues: (1) the importance of advertising and product differentiation for structural change in the brewing industry; (2) the manner and extent to which brewers can strategically alter market shares using advertising; and (3) the social costs of beer advertising and marketing, including advertising bans, targeting of underage youth, and recent changes in the three-tier system of alcohol distribution. Major legal decisions pertaining to commercial speech and other regulations also are discussed.JEL Classifications: L66, L13, M37     

Outdoor advertising for business markets

A review of the history and current prevalence of outdoor advertising suggests that although the medium is very effective it is not widely used in business-to-business markets. A case for using outdoor advertising is deductively made based on the unique characteristics of business markets such as: geographic concentration of buyers, need to target buying center members, advantages of having integrated communication, possibility of creating derived demand, and targeting trade shows. This paper offers recommendations on when and how to use outdoor advertising based on unique business market characteristics, industrial promotional objectives and business product classification. Research propositions and directions for future research are offered.     

Overt searchers' responses to advertising

The purpose of this study was to compare two groups of prospective buyers of an industrial product on awareness and recall of a particular advertising campaign. The two groups were: (a) overt searchers - operationally defined as those who had made inquiries about the product, and (b) random prospects - randomly selected from local industrial directories. According to the Howard and Sheth model, it is expected that overt searchers would exhibit greater awareness and knowledge of the advertising campaign than would the random prospects. The results indicated, however, that overt searchers scored higher than random prospects only on awareness. Indeed, they seemed to have poorer recall of the content of the advertisements. The authors provide an explanation for this unexpected result.     

Improving industrial advertising copy

This article advances a variety of suggestions for improving industrial print advertising copy. A number of research projects serve as the basis for the suggestions and a number of examples are discussed in order to illustrate the applications.     

A strategic approach to industrial product pricing: The pricing plan

Price planning is one of the most overlooked areas in industrial marketing. Traditionally, emphasis is placed on product development, advertising strategy, and distribution channel formation before any consideration is given to pricing. The result is that industrial pricing decisions are made quickly without the necessary market and cost factors included in the final decision. The pricing decision is at the core of every business plan and impacts directly on the critical components of a company's marketing strategy. In this article, the importance of price planning in industrial marketing is discussed including the major components needed to make an industrial pricing strategy successful.     

Market share,advertising, R&D,and profitability: An empirical analysis of leading industrial firms in Japan

This paper develops a dynamic model of a leader firm which chooses the time paths of R&D and advertising inputs so as to maximize the present value of expected profits. From this theoretical model simultaneous-equations system for market share, advertising, R&D, and profitability is derived and estimated using the data on the leading industrial firms in Japan. Our results show that, as far as top firms are concerned, market share and demand growth have significant positive effects on profitability, and an increase in the stock of goodwill increases market share as well as profitability.This study was financially supported by the Ministry of Education in Japan. Helpful comments were provided by H. Odagiri. Also I am indebted to an anonymous referee for advice and criticism on various points.     

An analysis of B2B ingredient co-branding relationships

The proliferation of co-branding in consumer markets has been given considerable attention in the literature, yet attention to the practice in business-to-business markets has been limited, despite the growing attention to the role of relationships in the B2B arena. In an examination of co-branding in the industrial sector, this paper discusses the use of ingredient co-branding and uses an econometric modeling approach to offer a rationale for why it occurs. The analysis provides insight into why downstream manufacturers participate in a relationship that strengthens the supplier's position in the market. We find that under the threat to the supplier of entry from a competitor whose costs are unobservable, co-branding relationships will be entered into resulting in a reduced probability of entry. This co-branding arrangement benefits both the incumbent supplier and the downstream manufacturer. The incumbent supplier benefits from the reduced probability of competitor entry, and the downstream manufacturer is rewarded with a lower price. Further, we find that the cost of the co-branded product is lower, due to a mitigation of double marginalization in a vertically-integrated solution. We examine co-branding relationships with and without advertising support and find that co-branding relationships with advertising support tend to be superior.     

Advertising, Its Determinants, and Market Structure

This study derives a formal model of firm advertising behavior and applies it to the industry level to figure out the relationship between advertising and market structure. The firm advertising model shows that both consumer preference andfirm-specific advertising competence jointly determineprofit-maximizing advertising intensity. At the industry level, advertising intensity is represented multiplicatively by consumer preference and a measure of market structure, which reflects the joint distribution of the levels of advertising competence and market shares among firms. The new market structure measure suggests that those single-dimensional measures of market structure such as seller concentration and the Herfindahl index are inadequate in explaining interindustry differences in advertising intensity, and that the long-debated advertising-concentration relationship differs depending primarily on the appropriability of advertising. An empirical analysis of 426 five-digit Korean manufacturing industries shows that an inverted U-shaped relationship between the Herfindahl index and industry advertising intensity is observed for consumer goods industries but a lazy J-shaped relationship for producer goods industries.     

The impact of food advertisements on changing eating behaviors: An experimental study

This research examines how three types of food advertising (healthy food, unhealthy food, and anti-obesity) impact consumers’ purchases of lunch items. The analysis is based on an economic experiment conducted with 186 adult non-undergraduate student subjects, each of which were randomly placed into either the control group or one of four treatments: (1) healthy food advertising, (2) anti-obesity advertising, (3) unhealthy food advertising, and (4) mixed (all three food) advertising. The results indicate that healthy, anti-obesity, and mixed food advertising reduced intakes of total calories, fat, sodium, and carbohydrates. Similarly, anti-obesity, healthy, and mixed food advertising results in increasing the probability of selecting more healthy items and fewer unhealthy items from a menu. Healthy food advertising has a stronger impact than anti-obesity or mixed food advertising.     

Informative Advertising Competition

This paper investigates informative price advertising in an established-product Hotelling duopoly where firms compete for shares of a fixed market. Prices are uncertain because firms’ costs are private information. For a sufficiently low cost of advertising, advertising necessarily arises in equilibrium. Also, the less balanced the initial distributions over costs, the greater the potential for informative advertising. Moreover, whenever firms use informative advertising, it increases the firms’ expected profits, and social welfare, relative to the outcome without advertising.