Manufacturer defensive and offensive advertising in competing distribution channels

Producción CientíficaThis paper investigates how two competing manufacturers should invest in defensive and offensive advertising in a two-segment market and whether they should each adopt a decentralized or an integrated channel if \ their goal is to maximize total channel profits. We find \ that, manufacturers in decentralized channels can exclusively undertake either of the two types of advertising or combine the two at the equilibrium. In integrated channels, they can either combine the two or exclusively undertake defensive advertising. When multiple equilibria exist, strategies that combine both types of advertising should be preferred to exclusive defensive advertising strategies, which are better than exclusive offensive advertising strategies. Also, total channel profits are higher in decentralized channels than in integrated channels when the brands are moderately or highly substitutable. Conversely, total channel profits of integrated channels are higher than those of decentralized channels in areas where the brands are relatively differentiated and the offensive advertising retaliatory capacity of the rival is stronger. Theoretical and managerial implications of these findings are discussed

There's no Place Like Home: A Strategic Framework to Overcome Liability of Foreignness in the German Car Market

Globalization has led to exciting new business opportunities around the globe. Still, national and cultural boundaries have not evaporated into a "borderless world". Several studies have identified so-called liabilities of foreignness that arise from a lack of embeddedness and roots in the host market and subsequent competitive disadvantages. Countervailing strategies for these effects have remained scarce so far. We suggest that this is due to the lack of a viable approach to identify and quantify these effects and develop a conceptual framework to empirically estimate the individual degree of liability of foreignness of a firm from a market perspective. We suggest that disruptive changes in a society change the dynamics of liability of foreignness and generate opportunities for foreign companies to optimize their localization strategies. We apply our approach to a large mature market with established international competition : the German new car market. For a comprehensive sample of roughly 1,400 car models from 2003 we estimate the relative turnover disadvantage for all major foreign manufacturers. We find that most foreign producers have managed to overcome liabilities of foreignness in Germany through firm-specific advantages. Still, some face significant challenges. A submarket analysis shows that home market advantages are more deeply rooted in the Western part of Germany and that foreign competitors find a more accessible competitive environment in Eastern Germany. Therefore, East Germany is a superior platform for deploying effective and efficient countervailing strategies. Moreover, we identify a broader rationale to engage early and decisively in untapped but promising markets like China. --Liability of foreignness,automotive market,multinational strategy,seemingly unrelated regressions

There is no Place Like Home: A Strategic Framework to Overcome Liability of Foreignness in the German Car Market

Globalization has led to exciting new business opportunities around the globe. Still, national and cultural boundaries have not evaporated into a borderless world. Several studies have identified so-called liabilities of foreignness that arise from a lack of embeddedness and roots in the host market and subsequent competitive disadvantages. Countervailing strategies for these effects have remained scarce so far. We suggest that this is due to the lack of a viable approach to identify and quantify these effects and develop a conceptual framework to empirically estimate the individual degree of liability of foreignness of a firm from a market perspective. We suggest that disruptive changes in a society change the dynamics of liability of foreignness and generate opportunities for foreign companies to optimize their localization strategies. We apply our approach to a large mature market with established international competition: the German new car market. For a comprehensive sample of roughly 1,400 car models from 2003 we estimate the relative turnover disadvantage for all major foreign manufacturers. We find that most foreign producers have managed to overcome liabilities of foreignness in Germany through firm-specific advantages. Still, some face significant challenges. A submarket analysis shows that home market advantages are more deeply rooted in the Western part of Germany and that foreign competitors find a more accessible competitive environment in Eastern Germany. Therefore, East Germany is a superior platform for deploying effective and efficient countervailing strategies. Moreover, we identify a broader rationale to engage early and decisively in untapped but promising markets like China.Liability of foreignness, automotive market, multinational strategy, seemingly unrelated regressions

HOWCAN MULTI- CHANNEL RETAILING FURTHER EXPAND THEIR PRODUCT RANGE WHILST SUSTAINING CUSTOMER EXPERIENCE AND SATISFACTION FOR BOOTS.COM?

The Nottingham MBA team were assigned to explore online product range extension of Boots.com from marketing, supply chain and financial perspectives. Firstly, from the marketing perspective we explored the market attractiveness, profitability, challenges of expanding the product lines in online industry specifically. Initially we identified the existing customer segments and the emerging customer segments, to better understand the target customers for extending the product line. We also considered market-product life cycle for applying the marketing strategies by considering the market, product and brand parameters by benchmarking with key players in the industry and industry trends. This enabled us to identify the areas of growth for extending the product line for Boots.com. Furthermore, future distribution method '�¢â�¬�� New Fangled Drop ship model was also evaluated to provide efficient delivery for extended product range in the area of supply chain management. After that, key performance indicators (KPI's) for sustaining customer experience and satisfaction across different channels is also suggested. Lastly we analysed the financial implications of extending the product line, by identifying the key future revenue generators for Boots.com. Considering this as the foundation we developed the hypotheses which were to be answered through the study. H1: For online product expansion in e-retailing, strategic market planning process necessitates careful examination of market attractiveness, typically in shaping market attractiveness, factors such as market size, market growth, competition, segmentation, targeting and positioning, margin potential and the company's core competencies. H2: In moving into new markets, the critical success factors include leveraging on brand/reputation and capability. The timing of products and customer segmentation are important for market attractiveness. H3: Good inventory management, cost-effective and efficient delivery and supply for new product protect margin and profitability. H4: In Key Performance Measurement ('KPI') for sustaining customer experience and satisfaction for Boots.com, Channel Alignment, Drop Ship and Efficient Standardised Delivery Methods for all products are used. The hypotheses were answered through a combination of qualitative and quantitative research methods. For analysing Boots.com internally we looked into Boots.com's internal data which was provided to us from all the perspectives of Sales and Marketing, Supply Chain and Financials. For understanding from customer perspective in terms of new products from marketing view point and understanding the customer experience in terms of delivery methods from multi channel retailing and supply chain view point, we conducted various levels of surveys for collecting the data. This cemented our research and analysis of data we collected from the industry reports. The results and finding reinforced our hypotheses in extending the product line from marketing, supply chain and financial perspectives. Finally, our research and analysis enabled us to recommend the key areas of product line extension for Boots.com and the scope of improvement for the future drop ship model. Based on the screening criteria of market attractiveness and business position, we have recommended five products which can be further maximised and taken further. These products are seen to be financially viable based on the projected future cash flow, projected profit margin, and net present value to signify increasing shareholders wealth. For Boots.com, these financial viability must be accompanied by Key Performance Indicators which are intrinsically linked to continuous improvement. To conclude, we also considered Boots.com's future road map for showcasing the future direction by incorporating these recommendations

Boycotts and Restrictive Marketing Arrangements

It is currently a common if still relatively unheralded practice for a fired dealer to bring an antitrust action against his former manufacturer-supplier (and perhaps other dealers), alleging that his termination was the result of a boycott. Boycotts-collective efforts to obtain the exclusion of a party from a market-are illegal per se under section 1 of the Sherman Act. Thus, questions concerning the justification for the boycott or the significance of the offender\u27s market position do not arise

Direct Marketing Product-Market Strategies

The article points out the characteristics of planning, options choices and strategies in the area of direct marketing. Thus, it is the marketing plan that sets the tasks and defines the scope of direct marketing. The extent to which direct marketing is affected by a firm’s strategic decisions, and in turn affects them, is linked to its importance in the marketing mix. Operational alternatives can be mapped by the conventional product-market matrix. Once a combination is selected, the firm is still left with the question of how to achieve the objective of the strategy; a strategy can fall into three broad groups: undifferentiated, focus, and differentiated. All the producers strive to have customers perceive that their outputs are unique, different, and preferable to competitive products.planning, product-market options, strategies, tactics, differentiation

Advertising of machinery

Thesis (M.B.A.)--Boston University, 1929. This item was digitized by the Internet Archive