8.2 Brand Marketing

8.2.1 Brand Advertising

(Sethuraman, Tellis, and Briesch 2011)The average short-term and long-term brand advertising elasticity values are 0.12 and 0.24, respectively. The elasticity of brand advertising has decreased with time, and advertising elasticity is greater for durable products than non-durable goods in the early life cycle stage than in the mature life cycle stage.

(Danaher, Bonfrer, and Dhar 2008) The advertising elasticity of the focal brand decreases when one or more rival companies run ads during the same week. If all brand advertising were reduced, each brand’s advertising would receive more reaction.

8.2.2 Brand Promotion

(DelVecchio, Henard, and Freling 2006) On average, sales campaigns have little effect on brand choice post-promotion.

(Guyt and Gijsbrechts 2014) Timing brand promotion out-of-phase with competing chains does not necessarily increase merchants’ net revenue gains, especially in areas where brand promotions impact the place of purchase.

(Ailawadi, Neslin, and Gedenk 2001) Heavy consumers of out-of-store brand promotions plan their purchases, are prepared to transfer stores but not brands, have ample storage space, and have a low cognitive demand. Retail brand promotion users feel more financially limited, are impulsive, and are not motivated by conformity motive or cognitive need.

References

Ailawadi, Kusum L., Scott A. Neslin, and Karen Gedenk. 2001. “Pursuing the Value-Conscious Consumer: Store Brands Versus National Brand Promotions.” Journal of Marketing 65 (1): 71–89. https://doi.org/10.1509/jmkg.65.1.71.18132.
Danaher, Peter J., André Bonfrer, and Sanjay Dhar. 2008. “The Effect of Competitive Advertising Interference on Sales for Packaged Goods.” Journal of Marketing Research 45 (2): 211–25. https://doi.org/10.1509/jmkr.45.2.211.
DelVecchio, Devon, David H. Henard, and Traci H. Freling. 2006. “The Effect of Sales Promotion on Post-Promotion Brand Preference: A Meta-Analysis.” Journal of Retailing 82 (3): 203–13. https://doi.org/10.1016/j.jretai.2005.10.001.
Guyt, Jonne Y., and Els Gijsbrechts. 2014. “Take Turns or March in Sync? The Impact of the National Brand Promotion Calendar on Manufacturer and Retailer Performance.” Journal of Marketing Research 51 (6): 753–72. https://doi.org/10.1509/jmr.14.0193.
Sethuraman, Raj, Gerard J. Tellis, and Richard A. Briesch. 2011. “How Well Does Advertising Work? Generalizations from Meta-Analysis of Brand Advertising Elasticities.” Journal of Marketing Research 48 (3): 457–71. https://doi.org/10.1509/jmkr.48.3.457.