QUESTIONS
- Using Tables 6.4 and 6.5 , carry out a share of voice/
share of market analysis of the automobile industry for
2008, 2009, 2010 and 2011. Indicate the profit-taking
car makes and the investment makes for each year.
Do they match the leaders and followers in this
market? - Study the figures of German car manufacturers BMW
and Audi. What budgeting method would you assume
they are using: a percentage of sales method or a com-
petitive parity method? Why do you think this?- Suppose you want to launch the Smart brand on the
Belgian market. Your goal is to capture a market share of
1.5% by the year 2011. What budget would you suggest
to reach this goal? Consider two methods: the A/S ratio
method on the one hand and Peckham’s law on the
other. - What factors might influence advertising budgets in the
car industry?
Sources : ACEA economic report for year 2011, http://www.acea.be ; Febiac, http://www.febiac.be. Thanks to Wendy Van Dyck, Communication Channel Expert, Space
Brussels, for providing advertising budgets of the car industry.REFERENCES 201References
1 Bovée, C.L., Th ill, J.V., Dovel, G.P. and Wood, M.B.
(1995), Advertising Excellence. New York: McGraw-Hill.
2 Arndt, J. and Simon, J. (1983), ‘Advertising and
Economies of Scale: Critical Comments on the Evidence’,
Journal of Industrial Economics , 32(2), 229–41.
3 Longman, K.A. (1971), Advertising. New York: Harcourt
Brace Jovanovich.
4 Jegers, M. and De Pelsmacker, P. (1990), ‘Th e Optimal
Level of Advertising, Considering Advertising as an
Investment in Goodwill’, Ekonomicko Matematicky Obzor
( Review of Econometrics ), 26(2), 153–63.
5 Aaker, D.A., Batra, R. and Myers, J.G. (1987), Advertising
Management. Englewood Cliff s, NJ: Prentice Hall.
6 Jones, J.P. (1995), When Ads Work: New Proof that Adver-
tising Triggers Sales. New York: Free Press/Lexicon Books.
7 Jones, J.P. (1995), Editorial, Harvard Business Review
(January–February), 53–66.
8 François, J. (1996), ‘Forecasting Eff ect of Advertising on
Sales: Reporting on a Large-scale US Research’, Media
Line News.
9 McDonald, C. (1995), ‘Advertising Response Functions:
What are Th ey, What do Th ey Mean, and How Should we
Use Th em?’, Admap (April), 10.
10 Dekimpe, M.G. and Hanssens, D.M. (1995), ‘Th e
Persistence of Marketing Eff ects on Sales’, Marketing
Science , 14(1), 1–21.
11 Belch, G.E. and Belch, M.A. (1998), Advertising and
Promotion: An Integrated Marketing Communication
Perspective. New York: Irwin/McGraw-Hill.
12 Aaker, D.A., Batra, R. and Myers, J.G. (1987), Advertising
Management. Englewood Cliff s, NJ: Prentice Hall.
13 Kaynak, E. (1989), Th e Management of International
Advertising: A Handbook and Guide for Professionals. New
York: Quorum Books.
14 Schroer, J.C. (1990), ‘Ad Spending: Growing Market
Share’, Harvard Business Review , 68(1), 44–8.
15 Based on Jones, J.P. (1990), ‘Ad Spending: Maintaining
Market Share’, Harvard Business Review , 68(1), 38–43.16 Fill, C. (1995), Marketing Communication: Frameworks,
Th eories and Applications. London: Prentice Hall.
17 Sissors, J.Z. and Surmanek, J. (1986), Advertising Media
Planning. Lincolnwood, IL: NTC Business Books.
18 Aaker, D.A., Batra, R. and Myers, J.G. (1987), Advertising
Management. Englewood Cliff s, NJ: Prentice Hall.
19 Belch, G.E. and Belch, M.A. (1998), Advertising and
Promotion: An Integrated Marketing Communication
Perspective. New York: Irwin/McGraw-Hill.
20 Brown, R.S. (1978), ‘Estimating Advantages to Large
Scale Advertising’, Review of Economics and Statistics , 60,
428–37.(^21) Boyer, K.D. and Lancaster, K.M. (1986), ‘Are Th ere Scale
Economies in Advertising?’, Journal of Business , 59(3),
509–26.
22 Low, G.S. and Mohr, J.J. (1991), ‘Th e Budget Allocation
between Advertising and Sales Promotion: Understanding
the Decision Process’, AMA Educators’ Proceedings.
Chicago, 448–57.
23 Rossiter, J.R. and Percy, L. (1998), Advertising Communication
and Promotion Management. Sydney: McGraw-Hill.
24 Peckham, J.O. (1981), Th e Wheel of Marketing. Scarsdale,
NY: self-published.
25 Simon, C.J. and Sullivan, M.M. (1993), ‘Th e Measurement
and Determinants of Equity: A Financial Approach’,
Marketing Science , 12(1), 28–52.
26 Rossiter, J.R. and Percy, L. (1998), Advertising
Communication and Promotion Management. Sydney:
McGraw-Hill.
27 Parry, M. and Bass, F.M. (1990), ‘When to Lead or
Follow? It Depends’, Marketing Letters , 1(3), 187–98.
28 Urban, G., Carter, T., Gaskin, S. and Mucha, Z. (1986),
‘Market Share Rewards to Pioneering Brands: An Empir-
ical Analysis and Stratgeic Implications’, Management
Science , 32(6), 645–59.
29 Buzell, R.D. (1981), ‘Are Th ere Natural Market Structures?’,
Journal of Marketing , 45(1), 42–51.
M06_PELS3221_05_SE_C06.indd 201M06_PELS3221_05_SE_C06.indd 201 6/5/13 3:01 PM6/5/13 3:01 PM