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This study focuses on the relationship between innovation and customer equity drivers and the moderating effect of advertising appeals on this relationship. First, the authors divided innovation into incremental innovation and radical innovation, and explained the influences of each type of innovation on drivers of customer equity based on literature review. Second, the authors tested the conceptual model using structural equation modeling find out the effects of innovation. Third, the authors also tested the effect of advertising appeal using moderating regression. The results indicate that both incremental innovation and radical innovation can positively influence value equity, relationship equity, and brand equity. Functional advertising appeal is more useful than emotional advertising appeal for radical innovation. On the contrary, emotional advertising appeal is more useful than functional advertising appeal for incremental innovation.

The current chapter is a tentative step toward investigating the allocation of advertising budget between the internet platform and the entity platform according to the long-term and short-term achievement of advertising investment. We provide a decision-making framework on how to allocate the advertising budget to the two platforms for the best results. The integrated effect of advertising investment consists of two parts. Goodwill and customer scale reflect the long-term achievement, and sale profit represents the short-term achievement. We selected some representative feasible investment plans as decision-making units (DMUs), and calculated the values of sale profit, goodwill, and customer scale as three outputs. To determine the best advertising investment plan, we use data envelopment analysis (DEA) model to seek efficient plans, and then determine the best one from those efficient plans through preference investigation and super-efficiency technique.

A dynamic oligopoly model of the cigarette industry is developed to study the responses of firms to various antismoking policies and to estimate the implications for the policy efficacy. The structural parameters are estimated using a combination of micro and macro level data and firms’ optimal price and advertising strategies are solved as a Markov Perfect Nash Equilibrium. The simulation results show that tobacco tax increase reduces both the overall smoking rate and the youth smoking rate, while advertising restrictions may increase the youth smoking rate. Firm’s responses strengthen the impact of antismoking policies in the short run.

This chapter provides an overview of the state of knowledge about creative media advertising; choosing a novel medium that implicitly communicates the message. It explains what creative media advertising is and how it differs from other unconventional marketing communication formats. It addresses the theoretical mechanisms that explain how creative media affects consumers. Its final purpose is to review all the empirical findings about creative media advertising effects.

This chapter presents a systematic literature review of all the empirical research about creative media advertising that explicitly compares its effectiveness with traditional media advertising. The 11 reviewed articles with 16 experiments appeared between 2005 and 2015.

Overall creative media advertising generated positive evaluative outcomes (e.g., brand attitude) and behavior (e.g., word of mouth and sales). These effects were often mediated by a feeling of surprise and an increase in positive thoughts. It remains unclear whether creative media are perceived as persuasion attempts. Mixed findings exist for cognitive outcomes. Creative media advertising seems beneficial for creating strong brand associations, but brand memory might suffer from the technique if solving the link between the medium and the message takes away mental resources for the brand elements in the advertisement.

By reviewing all the literature about creative media advertising, the authors make recommendations for future research and for using creative media in practice. They emphasize potential boundary conditions and ideal circumstances of using creative media advertising.

Purpose – Marketers are under increasing pressure to demonstrate the financial return associated with marketing expenditures. Concurrently, more attempts at measuring return on investment from marketing as well as achieving other long-term goals such as building brand equity and increasing shareholder value have been made. As a result of this emphasis, the degree to which advertising budgets are spent efficiently and the impact of these expenditures on the bottom line are an important topic to study.

Methodology/approach – This study applies data envelopment analysis (DEA) to a group of large firms to assess the degree to which companies spend advertising dollars efficiently and to examine the impact of advertising efficiency on investor behavior and, ultimately, stock prices.

Findings – The analysis reveals that firms that advertise more efficiently are rewarded by investors by positive stock returns.

Research limitations/implications (if applicable) – The study is limited to large enterprises with strong brands within a time frame of only four years.

Practical implications (if applicable) – The results imply that it is advisable for marketing managers not to limit their focus to increasing market-based assets at any cost. The efficiency of their efforts can send a positive signal to investors and contribute to shareholder value enhancement.

Originality/value of the chapter – The chapter finds investors to pay attention not only to the effectiveness of advertising activities but also to their efficiency. The study also demonstrates how DEA and stock return response modeling can be combined to investigate the link between advertising efficiency and investor behavior.

Customers in business-to-business markets are sellers of goods and services on their own. Thus, business-to-business suppliers may exert an influence on their customers’ buying decisions when performing marketing activities toward the customers of the customers by employing the concept of “multistage marketing”. Multi-stage marketing involves all sales-related measures which are aimed at the subsequent market stages (“customers of the customer”) which follow one or several primary customers in order to influence the buying behavior of these primary customers. Although the positive impacts of such activities are known, business-to-business companies often exclude the customers further along in the downstream supply chain from their marketing plans. But in a business-to-business context, the demand is always derived from buying decisions made further down the supply chain. The primary customers buy products or services because they want to use them – directly or indirectly – for either the production or the sale of other goods and services. Hence, derived demand, which can be traced to the end-user's primary demand, can be seen as the basis of multistage marketing.

The most common form of multistage marketing is ingredient (co-)branding, which occurs when a marketer providing an ingredient or component to an OEM advertises the ingredient to the customer of the assembled product. In addition to ingredient branding, this chapter identifies several other forms of multistage marketing and examines the underlying dimensions and processes of the phenomenon. The design of a marketing strategy using the concept of multistage marketing and its preconditions are discussed on a theoretical basis and are illustrated through concrete examples. The chapter provides a number of best practice examples in order to elucidate the issues concerning multistage marketing and its application in a company's marketing strategy serving business-to-business markets.

This chapter provides an overview of the marketing strategy development process in the commercialization of breakthrough technologies. Important concepts and elements that are considered critical when developing market applications are presented with emphasis on three key decisions: target market selection, segmentation, and positioning. These strategic decisions will guide the more tactical considerations relating to the specific elements, or marketing mix, of the product’s marketing strategy. Marketing strategy development is a dynamic process that is impacted by many factors. This chapter highlights the dynamic nature of this process as well as providing insight as to the fundamental considerations in strategy formulation.

This paper provides a review of the academic literature regarding examining the standardization vs. specialization debate during the 1990s. While numerous studies have examined the validity of both strategies, it is clear that many companies are adopting an approach where broad strategy is standardized but actual advertising executions are localized as necessary. There is a need for future researchers to focus on how to effectively develop and implement standardized strategies as opposed to examining whether advertising should be standardized. Suggestions for further research are provided.

This study compares the informativeness and the appeals used in magazine advertising in China with those used in France and in the United States. It provides international marketers with a snapshot of current magazine advertising tactics and provides scholars with an assessment of how consistently expectations based on seminal cross-cultural research predict the informativeness and the appeals used in magazine advertising in each country. Surprisingly, the expectations based on the literature were most often inconsistent with the observations. These findings should serve as a reminder to international marketing scholars that the seminal cross-cultural works, as useful as they are in providing cultural insights, were never intended to apply equally to all subgroups (e.g., the Little Emperors) within a culture.