Managing advertising investments in marketing channels

This paper investigates how should manufacturers optimally allocate resources to retailer-initiated (retailer) advertising through cooperative advertising programs and own (manufacturer) advertising in a bilateral monopoly. Retailer advertising stimulates immediate sales but may also harm long-term (post-advertising) demand, whereas manufacturer advertising aims at building brand equity and stimulates both immediate and long-term sales. A game-theoretic model in which a manufacturer and a retailer set pricing and advertising decisions over a two-period planning horizon is developed to account for the differences between manufacturer and retailer advertising. We characterize equilibrium solutions for four advertising scenarios for the manufacturer, ranging from no investment in any advertising activity to undertaking own advertising and supporting retailer advertising simultaneously. Comparing the two players’ equilibrium strategies and profits across these scenarios, we find that manufacturers should avoid offering exclusively cooperative advertising programs to retailers. When retailer advertising positively influences long-term sales, manufacturers should offer cooperative advertising supports to retailers in addition to undertaking their own advertising. When retailer advertising negatively affects long-term sales, manufacturers can still undertake own advertising and offer cooperative advertising under certain conditions. However, if these conditions are not met, focusing exclusively on own advertising is their best advertising strategy. Retailers also prefer scenarios in which manufacturers advertise, but may choose not to participate in manufacturers’ cooperative advertising programs. This leads to suboptimal outcomes if cooperative advertising programs are not enhanced by additional incentives (e.g., side payments or other services).     

Goodwill and dynamic advertising strategies

In this paper, we empirically analyze weekly advertising policies of manufacturing firms in consumer goods markets. We assume firms engage in persuasive advertising, thus policies of firms affect the goodwill of a brand. We introduce a demand and a goodwill production function. A simple transformation of the demand function allows us to identify not only the demand parameters but also the parameters of the goodwill production function. We reconstruct the unobserved goodwill levels using these parameters and past advertising levels. We restrict our attention to Markov Perfect Equilibrium (MPE) strategies which are functions of payoff relevant state variables. Without imposing further restrictions on the dynamic competitive environment, we investigate the relationship between observed advertising strategies—which are assumed to be MPE—and payoff relevant state variables by means of several reduced form specifications. The most important determinant of advertising intensity turns out to be goodwill. We demonstrate that controlling for an advertising campaign significantly improves the explanatory power of the model. JEL Classification L13 . C73 . M30 . M37 I would like to thank Volkswagen Stiftung for the generous financial support which made this research possible.     

The marketing of ideas advertising and road safety

The modern-day marketing concept makes a global reference to the set of symbolic transactions that characterize human exchanges. One of the best known forms of such expression is advertising. By assigning values to the objects that surround us, advertising molds people's imaginations through its creation of authentic myths. It is appropriate, therefore, in a marketing survey that tries to discern the personality of consumers, to analyze the symbolic configurations that are generated by advertising messages.We were commissioned to undertake such a psycho-semiotic content analysis for the Régie de l'assurance automobile du Québec (RAAQ), a Government of Québec agency that, among other things, regulates the provision of automobile insurance and maintains statistics on road accidents in the province of Quebec, Canada. An increase in motorcycle accidents has spurred RAAQ officials to take stronger measures to promote road safety. The objective of our analysis was to evaluate the way in which motorcycle advertisements might be responsible — at least in part — for this increase.Although one cannot draw the unequivocal conclusion that these advertisements lead to carelessness in motorcyclists, this analysis nonetheless indicates that there does exist a certain number of elements in these ads that promote ‘recklessness’ on the road. The constant references to power, to overtaking other motorists, and to euphoria — ‘Pour un moment d'éternité, ne faites pas de compromis’ (’for one moment of eternity, make no compromises’), insists one of the slogans — can only raise some concerns.     

Third world industrialisation-The consequences for Western Europe

There is growing awareness that some fundamental change has for some time been affecting the major European economies, involving a shift of manufacturing away from the developed market economies of Europe towards the developing countries. The following article analyses the process of European deindustrialisation and discusses some of the possible consequences.     

网络广告，打造汽车营销新局——东南汽车V3菱悦互动营销案例分享

如今,随着网民的激增,网络媒体已经成为公认的传统媒体最强劲的竞争者,而与之相伴随的就是网络广告越来越受到企业的重视,投入逐年增加。与此同时,网络广告业的竞争也日益激烈,花样百出、无孔不入的各种广告让受众感到有些厌烦和麻木。在这种情况下,网络广告如何出新,如何吸引眼球并为企业取得好的营销效果,就成为一个值得研究的话题。     

Web advertising: The role of e-mail marketing

This study examines a comprehensive range of executional elements in a sample of permission-based e-mail marketing campaigns. The sample comprised almost 1000 promotional e-mails sent over an 18-month period by twenty leading U.K. e-retailers. Content analyses of the e-mail campaigns reveal that different tactics of format, address, subject lines, hyperlinks and interactivity are applied to initially attract customers' attention and then encourage further interest. Interviews with nine of the twenty marketing executives who designed the campaigns pointed to managers' reasons for use of the tactical alternatives.     

The making of self and world in advertising

In this paper I will criticize a common practice I call associative advertising. Briefly, associative advertising induces people to buy (or buy more of) a product by associating that market product with such deep-seated non-market goods as friendship, acceptance and esteem from others, excitement and power even though the market good seldom satisfies or has any connection with the non-market desire. The fault in associative advertising is not that it is deceptive or that it violates the autonomy of its audience — on this point I find Robert Arrington's arguments persuasive (Advertising and Behavior Control, Journal of Business Ethics 1 (1982), 3–12). Instead, I will argue against associative advertising by examining the virtues and vices at stake. In so doing, I will offer an alternative to Arrington's exclusive concern with autonomy and behavior control.My main criticism is two-fold: (a) Advertisers must surely desensitize themselves to the compassion, concern, and sympathy for others that are central emotions in a virtuous person, and (b) associative advertising influences its audience to neglect the nonmarket cultivation of our virtues and to substitute market goods instead, with the result that we become worse and, quite likely, less happy persons.John Waide is Associate Professor of Philosophy at Christian Brothers College.An earlier draft of this paper was presented to the Tennessee Philosophical Association, 10 November 1984. I am indebted to that group for many helpful comments.     

Technology profiles and export marketing strategies

This paper defines four different profiles which reflect the nature and level of a firm's technological involvement in exporting and foreign sales. It is also possible to characterize a firm's export marketing strategy along a reactive-proactive continuum. Technology profiles and marketing strategies are then linked together to suggest the optimal approach to developing overseas markets for a given type of firm. A number of essential requirements for successful export marketing are also described. It is suggested that success requires a combination of innovation, adaptation, and an appropriately selected marketing strategy.     

The effectiveness of advertising that leverages sponsorship and cause-related marketing

This paper shows that consumers are more likely to have ambivalent attitudes towards causerelated marketing (CRM) than sponsorship. Whereas consumers share similar positive perceptions of CRM and sponsorship, and attribute the motives behind them to altruism, their negative perceptions and attributions of CRM are more accessible than those of sponsorships. On the basis of these differences, this article proposes a contingency model in which suppressing the activation of CRM’s negative perceptions enhances the effectiveness of advertising that leverages CRM. The effectiveness of advertising that leverages corporate sponsorship, which is not associated with ambivalent perceptions, is less subject to the suppression of negative perceptions. The model includes two contingent factors, an individual difference factor and a situational factor. The results generally support the proposed model; the effectiveness of ads leveraging CRM improves when negative associations of CRM are less likely to be activated.     

Female images in advertising: the implications of social comparison for marketing

Does advertising create insecurities and dissatisfaction with the self? This exploratory study investigated how British women consumers, aged 24–50, responded to a range of ideal images presented in fashion magazines. Congruent with previous research, British women compared themselves with idealised advertising images. However, consumers actively and selectively interpreted the meanings of idealised images represented in advertising stimuli. Although some women raised their standards of comparisons and lowered their own self-assessments after viewing the ideal images, there was also evidence that women employed a variety of strategies when consuming the idealised images portrayed in fashion advertising, depending on the goal of the social comparison process. These strategies are interpreted in the context of social comparison theory, and the implications for integrated marketing communication strategies are discussed.     

客观看待消费研究对广告营销趋势的影响

大型广告公司都会进行常规的消费研究，以此作为为广告主制订传播推广策略的重要参考。2009年4A广告公司在消费报告发布上的高调，多少是受金融危机影响的表现，是减轻和化解危机影响的一种方式。如果关注一下整体消费市场及媒体投放等多种因素，对消费研究的形势判断就会更加全面。     

Industrial marketing strategies and different national environments

This article analyzes the marketing strategies of industrial suppliers in five Western European countries. The strategies are characterized in a quality dimension and a customer adaptation dimension. In the quality dimension the strategies are found to be related to characteristics of the industrial environment of the supplier country. In the adaptation dimension they are related to the cultural affinity with the customer country as perceived by industrial purchasers in these countries.     

2002年世界造船市场回顾与2003年展望

2002年世界造船市场概况 1.新船订单与上年持平散货船需求增大根据公开的新船成交报告估计,2002年全球新船成交量与2001年基本持平,约在5000万载重吨左右。其中油船约2030万载重吨,比2001年下降700多万载重吨,减幅达四分之一;散货船2160万载重吨,比2001年增加一倍多;集装箱船成交约     

世界水下战武器市场的发展变化

一、目前水下战所面临新形势水下战包括两大方面,其一是反潜战,其二是水雷战及其对抗措施。在冷战时期,水下战的重点是放在反潜战和水雷战方面。自20世纪90年代以来,随着苏联解体,冷战宣告结束,以美国为首的几个西方大国没有了强大的对手,水下战的远洋反潜战不     

Cause mapping of simple and complex marketing strategies

Business-to-business relationships between original equipment manufacturing (OEM) suppliers and customers (brand name buyers) are an often studied issue; however, theoretical and empirical studies seldom focus solely on the suppliers' perspective. This paper examines OEM suppliers' perspectives and reports on the phenomenon of some suppliers choosing single customers while others focus on multiple customers to achieve the adaptive selling as their profit making that cause the parsimonious and complex customer strategies through the empirical studies. The study also uses mental models to analyze two specific cases of OEM suppliers within Taiwan's shoe industry in relation to what kinds of environmental changes that successful managers apply to their parsimonious and complex customer strategies. Mental models are used to map the evolution of these two OEM suppliers' customer strategies, along with their culture, competitive advantages, cooperation relationships, and environment. The study explores these five core propositions to show suppliers to employ different approach to customer strategies, and map the evolution of strategic development of Taiwan shoes companies from the 1970s through to the present day.     

Offensive and defensive marketing: Closed-loop duopoly strategies

Offensive and Defensive Marketing: Closed-Loop Duopoly Strategies A modified Lanchester game is used to develop closed-loop strategies for offensive and defensive marketing expenditures of duopolistic competitors in a market share rivalry. Analysis of the model reveals that

1. well-defined closed-loop strategies can be developed that show directly the influence of market share on offensive and defensive marketing;
2. steady state is marked by balance between offensive and defensive marketing expenditures;
3. defensive marketing is more critical than offensive marketing due to greater risk of loss under deviation from closed-loop strategies.

The last result would appear to have particularly important implications for both practice and research.     

Winning ugly: Profit maximizing marketing strategies for ugly foods

Ugly foods meet nutritional and safety benchmarks but deviate from cosmetic and size standards. The marketability of ugly food is a major factor that frustrates field-level food rescue efforts. We investigate opportunities to promote ugly foods in a way that converts uniform negative preferences towards ugly food to more diverse and horizontally differentiated preferences where some consumers prefer ugly food to standard offerings and pay a premium. We conduct an online discrete choice experiment and find a portfolio of marketing strategies that significantly enhance respondent willingness to pay for ugly carrots. Dual messages that simultaneously (1) link the purchase of ugly food to reductions in food waste and (2) suggest ugly food is natural and authentic significantly improve willingness to pay. We also find respondents tolerate some level of mixing of ugly with standard carrots. We find the most profitable strategy is to form bunches that include 40% ugly and 60% standard carrots and to sell the bunches with green leaves attached at farmers markets where consumers receive dual marketing messages. Profit simulations confirm that, in the absence of such marketing strategies, farmers rationally create waste by discontinuing harvest when the percentage of remaining carrots that are ugly is high.