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1 – 10 of over 7000
Article
Publication date: 21 November 2011

Kabir C. Sen

The present paper aims to understand the underpinnings of the variations in brand level direct‐to‐consumer (DTC) advertising through a two‐part study. First, it seeks to examine…

513

Abstract

Purpose

The present paper aims to understand the underpinnings of the variations in brand level direct‐to‐consumer (DTC) advertising through a two‐part study. First, it seeks to examine the various influences on advertising intensity (operationalized by advertising to sales ratios) in the context of DTC advertising. Second, it aims to analyze how changes in share of voice impact changes in market share.

Design/methodology/approach

Data on brand level advertising as well as sales were collected from different government and industry sources. This is used to compute the ratio of DTC advertising to sales as well as changes in share of voice, market share and average drug prices. A log‐log model is used to find parameter estimates based on OLS regression.

Findings

Market share has a negative influence on the ratio of advertising to sales. Drugs which have a greater degree of innovation (as judged by the FDA) appear to spend more on DTC advertising relative to sales. The paper also finds that an increase in share of voice is not associated with increased average drug prices, but is related to a growth of market share because of a change in the share of total prescriptions dispensed.

Originality/value

The paper is one of the few to examine the factors influencing advertising to sales ratios in the context of DTC advertising. It is also one of the first to investigate the relationship of changes in the share of voice with changes in market share.

Details

International Journal of Pharmaceutical and Healthcare Marketing, vol. 5 no. 4
Type: Research Article
ISSN: 1750-6123

Keywords

Book part
Publication date: 20 August 2018

Rashmi Malhotra, D. K. Malhotra, Elizabeth Mariotz and Raymond R. Poteau

In this chapter, we evaluate the dollar amount spent on advertising relative to sales, profit margin, and growth rates to study the effectiveness of advertising in today’s retail…

Abstract

In this chapter, we evaluate the dollar amount spent on advertising relative to sales, profit margin, and growth rates to study the effectiveness of advertising in today’s retail environment, and whether it leads directly to higher sales and increased profits affording positive earnings for the investor. The study illustrates the use of data envelopment analysis (DEA) technique to benchmark 16 apparel firms to evaluate the effectiveness of their advertising dollars on the sales, profit margin, growth, return on assets (ROA), return on equity (ROE), and return on investment (ROI).

Article
Publication date: 1 November 2000

George S. Low and Jakki J. Mohr

Brand managers in packaged goods firms are under pressure to increase or maintain high sales promotion spending at the expense of media advertising. This study investigates the…

30134

Abstract

Brand managers in packaged goods firms are under pressure to increase or maintain high sales promotion spending at the expense of media advertising. This study investigates the antecedents and outcomes of brand managers’ advertising and sales promotion budget allocations by adopting a bounded rationality perspective. Based on survey data collected from 165 brand managers in the USA, higher advertising (vs sales promotion) allocations are associated with: single, relatively high priced brands in the early phases of the product life cycle; and more experienced brand managers who are subject to less retail influence. Also, brands with higher budget allocations to advertising, relative to sales promotion, tend to have more favorable consumer attitudes, stronger brand equity, and higher market share increases and profits. Managerial implications and areas for future study are discussed.

Details

Journal of Product & Brand Management, vol. 9 no. 6
Type: Research Article
ISSN: 1061-0421

Keywords

Article
Publication date: 1 January 1991

Larry S. Lowe and Allen Kruger

This study addressed the advertising practices and advertisingthemes of a random sample of 269 US motel operations. Motel advertisingpractices were advertising to sales ratios

Abstract

This study addressed the advertising practices and advertising themes of a random sample of 269 US motel operations. Motel advertising practices were advertising to sales ratios, agency use, media use, satisfaction with advertising, dominant advertising themes, perceptions of advertising effectiveness, and comparative advertising levels. Data were analysed using motel operation attributes including location, number of motels in the system, number of rooms, average daily room rate, and organisational affiliation. Both chain and independent operations were included in the study.

Details

International Journal of Contemporary Hospitality Management, vol. 3 no. 1
Type: Research Article
ISSN: 0959-6119

Keywords

Article
Publication date: 1 May 1979

Lionel A. Mitchell

Editors' Note In this short article the authors briefly review and comment on the most commonapproaches used by companies or proposed by specialists for setting the budgets to

Abstract

Editors' Note In this short article the authors briefly review and comment on the most common approaches used by companies or proposed by specialists for setting the budgets to be spent on advertising in an organisation.

Details

Management Decision, vol. 17 no. 5
Type: Research Article
ISSN: 0025-1747

Article
Publication date: 1 July 1993

M.M. Metwally

The Australian banking system was subject to extensive measures ofderegulation in the 1980s. As a result there has been a dramaticincrease in marketing research and a tendency to

Abstract

The Australian banking system was subject to extensive measures of deregulation in the 1980s. As a result there has been a dramatic increase in marketing research and a tendency to rely more on advertising in maintaining and expanding market shares. Attempts to measure the effectiveness of the advertising of a number of Australian banks. Tests static and dynamic optimal advertising criteria and examines, using a simultaneous‐equations model, the interdependence between market shares and advertising of Australian banks. Short‐term analysis seems to suggest that the actual advertising/revenue ratios of Australian banks are much higher than the optimal ratios. Also Australian banks seem to follow a long‐run profit maximization policy with respect to their advertising expenditure. The banks seem to give a positive shadow price to the stock of goodwill. Moreoever, both banks and rival advertising exert a significant influence on the competitive position of Australian banks, as given by their market shares. Also shows that rates of return on the advertising of the small banks are much lower than those of the large banks.

Details

International Journal of Bank Marketing, vol. 11 no. 7
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 1 December 1998

David Stewart and Bridget Gallen

The promotional planning process is seen as being responsible for many of the problems associated with the increase in sales promotions. Planning, implementation and evaluation…

3502

Abstract

The promotional planning process is seen as being responsible for many of the problems associated with the increase in sales promotions. Planning, implementation and evaluation processes are influenced by the potentially conflicting goals of senior management and brand/product managers, a failure to integrate media plans and trade plans, and the prevalence of subjective and ad hoc decision making. All these factors are observed among large fast‐moving goods companies in New Zealand. Demonstrates that the promotional planning process is an important driver of how much use is made of sales promotions. A promotional planning matrix is offered as an analytical tool to allow managers to understand the impact of budget allocations and to help overcome planning problems that were identified in the study.

Details

Journal of Product & Brand Management, vol. 7 no. 6
Type: Research Article
ISSN: 1061-0421

Keywords

Article
Publication date: 23 October 2009

Kari Heimonen and Outi Uusitalo

The purpose of this paper is to examine the impacts of advertising expenditure on brands' market shares, utilizing a novel four‐week advertisingsales data from the highly…

5599

Abstract

Purpose

The purpose of this paper is to examine the impacts of advertising expenditure on brands' market shares, utilizing a novel four‐week advertisingsales data from the highly competitive oligopolistic Finnish beer market in which price competition among the homogeneous larger‐type beer brands is not allowed during the period of the study.

Design/methodology/approach

Competition is modelled using the Lanchester model. The impacts of advertising on market shares are estimated using the impulse‐response functions from vector autoregression, and the full information maximum likelihood and advertising elasticities.

Findings

Some new insights into beer market dynamics are obtained. First, the impacts of advertising are not similar across brands. Second, overspills of advertising impacts across brands are detected. Third, the reactions to competitors' advertising attacks are mild.

Originality/value

The paper utilizes four‐week brand‐level data on the market shares of the leading beer brands in Finland and the brands' advertising expenditure. During the period of the data, price competition is not allowed, which creates a unique opportunity to study the impacts of advertising on the market shares of brands.

Details

Marketing Intelligence & Planning, vol. 27 no. 7
Type: Research Article
ISSN: 0263-4503

Keywords

Article
Publication date: 1 April 1992

Peter Kim

Examines the effectiveness of advertising in the light of the shiftof marketing budgets in favour of promotions. Discusses the reasons forthis shift and summarizes studies which…

3136

Abstract

Examines the effectiveness of advertising in the light of the shift of marketing budgets in favour of promotions. Discusses the reasons for this shift and summarizes studies which show that advertising does work, especially during recessions. Concludes that advertising should not be neglected since, unlike promotions, it both raises sales in the short term and builds brands in the long term.

Details

Journal of Consumer Marketing, vol. 9 no. 4
Type: Research Article
ISSN: 0736-3761

Keywords

Article
Publication date: 1 December 1998

Kostas Oustapassidis

This paper tests for the presence of differences among the effectiveness of profitability determinants between strategic groups with advertised and unadvertised products by using…

1597

Abstract

This paper tests for the presence of differences among the effectiveness of profitability determinants between strategic groups with advertised and unadvertised products by using both the regression analysis and the Chow‐test. Panel data for the 23 Greek dairy firms that operated over the period 1990‐94 are used to examine the determinants of firm profit margins. The results show significant differences for the effects of strategies on profitability between the two strategic groups. Only the firms with nationally branded goods, which are more profitable than the group of producers of unadvertised goods, can effectively apply both the advertising and the diversification strategies to increase profitability

Details

European Journal of Marketing, vol. 32 no. 11/12
Type: Research Article
ISSN: 0309-0566

Keywords

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