tailieunhanh - MODELING MARKETING MIX BY GERARD J. TELLIS University of Southern California

We can identify seven important patterns of response to advertising. These are the current, shape, competitive, carryover, dynamic, content, and media effects. The first four of these effects are common across price and other marketing variables. The last three are unique to advertising. The next seven subsections describe these effects. Current Effect The current effect of advertising is the change in sales caused by an exposure (or pulse or burst) of advertising occurring at the same time period as the exposure. Consider Figure . It plots time on the x-axis, sales on the y-axis, and the normal or baseline sales as the dashed line. Then the current effect of advertising is the spike in sales. | 5 8 2006 8 35 PM Page 506 24 Modeling Marketing Mix Gerard J. Tellis University of Southern California Concept of the Marketing Mix Philosophy of Modeling The marketing mix refers to variables that a marketing manager can control to influence a brand s sales or market share. Traditionally these variables are summarized as the four ps of marketing product price promotion and place . distribution McCarthy 1996 . Product refers to aspects such as the firm s portfolio of products the newness of those products their differentiation from competitors or their superiority to rivals products in terms of quality. Promotion refers to advertising detailing or informative sales promotions such as features and displays. Price refers to the product s list price or any incentive sales promotion such as quantity discounts temporary price cuts or deals. Place refers to delivery of the product measured by variables such as distribution availability and shelf space. The perennial question that managers face is what level or combination of these variables maximizes sales market share or profit The answer to this question in turn depends on the following question How do sales or market share respond to past levels of or expenditures on these variables Over the past 45 years researchers have focused intently on trying to find answers to this question . see Tellis 1988b . To do so they have developed a variety of econometric models of market response to the marketing mix. Most of these models have focused on market response to advertising and pricing Sethuraman Tellis 1991 . The reason may be that expenditures on these variables seem the most discretionary so marketing managers are most concerned about how they manage these variables. This chapter reviews this body of literature. it focuses on modeling response to these variables though most of the principles apply as well to other variables in the marketing mix. it relies on elementary models that Chapters 12 and 13 .