Professional Documents
Culture Documents
The measurement of industry advertising effects by Schultz and Wittink (1976) .the
article explains that the statement, "advertising influences primary demand," is one that
forms the basis for many marketing plans and forecasts. Some studies have reported a
positive influence of primary advertising on primary demand; no conclusive empirical
evidence has been brought to bear on the major premise. The article offers an analytical
framework for assessing the nature of different industry advertising effects. Necessary
and sufficient conditions for distinguishing among a set of theoretical cases of the
various effects are presented. The variables that are mainly used in the article are
primary advertising, selective advertising, primary demand, advertising effects. The
research is mainly done my considering the facts of selective advertising and primary
demand. There is an example that if considered, with no loss of generality, an industry
made up of just two brands: Brand 1 and Brand 2. When the effect of a brand's
advertising is to increase its own sales without affecting competitive sales, we call this
the primary sales effect of selective advertising. When the effect of a brand's advertising
is to increase its own sales and that of its competitors, we call this the primary demand
effect of selective advertising. In addition, the situation where the effect of a brand's
advertising is to increase its own sales and to decrease sales of its competitors can be
referred to as competitive advertising. Considering, three pure cases of advertising
effect: primary demand effect, primary sales effect, and competitive advertising.
Basically an empirical study is being done to understand the difference between the
three cases. From all this we can conclude that theory of industry advertising effects is
outlined which can be used to investigate empirically the influence of selective
advertising on primary demand. A set of cases corresponding to this theory is described
and a model to discriminate among them presented and this model can, be applied, and
it was our purpose to provide an analytical framework to aid marketing managers in
determining the nature of industry advertising effects as precisely as possible.
imposed territorial exclusivity in the soft drink industry eliminates direct intra brand
competition and creates regional bottlers with monopoly power in the manufacture and
distribution of trademarked sodas. Syrup manufacturers had several motives for
creating geographical franchises and continue to find these restrictions advantageous
for a variety of reasons and exclusive geographic territories benefit syrup producers both
by increasing bottler profits and by facilitating the recovery of these larger profits by the
syrup manufacturers. Some of the profit recovery methods operate by fostering
increased syrup sales. Regarding advertising volume and the 'free rider' problem, the
writer say that, the existence of territorial exclusivity causes more resources to be
channeled into advertising by the bottlers than presumably would be bought in its
absence. The resulting impact on resource allocation, however, is unclear as the
relationship between the amount of advertising that would in fact be done if there were
no territorial restrictions and the socially optimal level of advertising remains unknown,
as does a proper definition of the socially optimal level of advertising in the soft drink
industry. The research is mostly dependent on the literature rather than any facts or
figures and that is the week point of this article that the things that are said in the article
aren't backed by proofs. So, for further study on this topic one has to be more precise
and use more numbers to interpret and present the results in a better way.
taken with the same meaning and representation. But in fact both are different in
meaning and elaboration. In this article, the lion's share of discussion went to brand
image. But brand identity, brand itself, consumer's lifestyles, their values and their
perception about the brand were also discussed in a considerable detail. The author
used very simple language and the 34 best possible references to explain the
development process and the way the variables interact and stack together. The articles
states that increasingly consideration is given to the image of the brand and the best way
to improve, or develop is by advertising. It states that the brand name states its
perception, values and benefits for the consumer. It has to meet the expectations of the
consumers. Lastly it says that the brand should be given values more realistic and
human like, instead of mechanistic values. In my opinion, the author is successful in
relating all the identified variables with the development of brand image. One thing
which I would recommend is that he should have given the latest explanations using the
market share and top of mind recall by referring to specific top brand and the way they
could improve their identity and image.
very interesting and useful for marketing students. Major variables discussed in this
article are Accuracy, sensitivity, marketing, Post-Experience exposure and PreExperience exposure. The article overall is well written and the authors effort for
combining all the perception variables together and relating them in a way that it makes
sense of its effects on the advertising effectiveness has made it very interesting indeed.
The article has no special research discussed. If it could include some examples and
research than it would have been easier to understand some psychological concepts
discussed in this article.