Do promotions benefit manufacturers, retailers or both ?.

While there has been strong managerial and academic interest in price promotions, much of the focus has been on the impact of such promotions on category sales, brand sales and brand choice. In contrast, little is known about the long-run impact of price promotions on manufacturer and retailer revenues and margins, although both marketing researchers and practitioners consider this a priority area (Marketing Science Institute 2000). Do promotions generate additional revenue and for whom? Which brand, category and market conditions influence promotional benefits and their allocation across manufacturers and retailers?To answer these questions, we conduct a large-scale econometric investigation of the effects of price promotions on manufacturer revenues, retailer revenues and margins. This investigation proceeds in two steps. First, persistence modeling reveals the short- and long-run effects of price promotions on these performance measures. Second, weighted least-squares analysis shows to what extent brand and promotion policies, as well as market-structure and category characteristics, influence promotional impact. A first major finding of our paper is that price promotions do not have permanent monetary effects for either party. Second, in terms of the cumulative, over-time, promotional impact on their revenues, we find significant differences between the manufacturer and retailer. Price promotions have a predominantly positive impact on manufacturer revenues, but their effects on retailer revenues are mixed. Retailer (category) margins, in contrast, are typically reduced by price promotions. Even when accounting for cross-category and store-traffic effects, we still find evidence that price promotions are typically not beneficial to the retailer. Third, our results indicate that manufacturer revenue elasticities are higher for promotions of small-share brands and for frequently promoted brands. Moreover, they are higher for storable products and lower in categories with a high degree of brand proliferation. Retailer revenue elasticities, in turn, are higher for brands with frequent and shallow promotions, for storable products and in categories with a low extent of brand proliferation. As such, from a revenue-generating point of view, manufacturer and retailer interests are often aligned in terms of which categories and brands to promote. Finally, retailer margin elasticities are higher for promotions of small-share brands and for brands with infrequent and shallow promotions. Thus, the implications with respect to the frequency of promotions depend upon the performance measure the retailer chooses to emphasize. The paper discusses the managerial implications of our results for both manufacturers and retailers and suggests various avenues for future research.

Competitive reactions and the cross-sales effects of advertising and promotion.

Abstract: How do competitors react to each other's price-promotion and advertising actions? How do these reactions influence the net sales impact we observe? We answer these questions by performing a large-scale empirical study of the short-run and long-run reactions to promotion and advertising shocks in over 400 consumer product categories, over a four-year time span.Competitive reaction can be passive, accommodating or retaliatory. We first develop a series of expectations on the type and intensity of reaction behavior, and on the moderators of this behavior. These expectations are assessed in two ways. First, vector-autoregressive models quantify the short-run and long-run effect of a promotion or advertising action on competitive sales and on competitive reactions. By cataloging the numerical results, we are able to formulate empirical generalizations of reaction behavior ('how do they react?'). Second, we estimate structural models of reaction intensity, in function of various market and competitive characteristics ('what are the drivers of reaction?'). Finally, by comparing our findings on reaction behavior with those on promotion and advertising effectiveness, we are able to evaluate competitive reaction behavior ('are they reacting as they should?').A major finding is that competitive reaction is predominantly passive. When it is present, it is usually retaliatory in the same instrument, but accommodating or retaliatory in a different instrument. There are very few long-run consequences of any type of reaction behavior. We also report on several moderating effects that are in line with expectations, and that support the presence of a certain amount of rationality in competitive reaction behavior.The net impact of the over-time effects of advertising and price-promotion attacks, competitive reactions and the sales effectiveness of each, is that competitors' sales are generally not affected, and especially not in the long run. We weigh the evidence that this sales neutrality is 'natural' (i.e., due to the nature of consumer response) versus 'managed' (i.e., due to the vigilance and effectiveness of competitors), and conclude in favor of the former.

Matching commercial thrips predating phytoseids with the highly diversified climatic conditions of different strawberry production systems

Flower inhabiting thrips (Order: Thysanoptera) are a major threat to fruit quality in strawberry production around the world. As chemical control is often inefficient, alternative control measures are of broad and current interest. Their fast reproduction makes predatory mites highly suitable for thrips control in a crop with a relatively short cropping season like strawberry. However, climatic conditions of strawberry production can differ strongly depending on the production system (glasshouse, plastic tunnel, open field, etc.) and the time span of cultivation (depending mostly on planting date and the type of cultivar: summer-or everbearing). As predatory mites typically display a temperature-dependent life history and the current commercially available thrips predating phytoseids vary in geographic origin, one can assume that under certain climatic conditions some species will be more applicable than others. The goal of this study is to determine which species are suitable for which climatic conditions. Therefore all (Belgian) production systems and time spans are categorized into three climate types, simulated in the laboratory. The population build-up of seven predatory mite species (A. degenerans, A. montdorensis, A. andersoni, A. limonicus, A. swirskii, N. cucumeris and E. gallicus) were assessed for each of these climatic conditions. Under the coldest condition (A), the in West-Europe indigenous E. gallicus was the only species with a significant population build up. When moderate conditions (B) were simulated E. gallicus, N. cucumeris and A. limonicus were most successful. The warmest regime (C) was most adequate for E. gallicus and A. swirskii

Prevalence of diabetes, metabolic syndrome and metabolic abnormalities in schizophrenia over the course of the illness: a cross-sectional study

BACKGROUND: Patients with schizophrenia are at high risk of developing metabolic abnormalities. METHOD: A prospective study focusing on metabolic disturbances in patients with schizophrenia, including an oral glucose tolerance test, is currently ongoing at our University Hospital and affiliate services. The prevalence of metabolic abnormalities at baseline was assessed in a cohort of 415 patients with schizophrenia. The sample was divided into 4 groups according to duration of illness: first-episode patients (<1.5 years), recent-onset patients (between 1.5 and 10 years), subchronic patients (between 10 and 20 years) and chronic patients (>20 years). RESULTS: Metabolic abnormalities were already present in first-episode patients, and considerably increased with increasing duration of illness. When compared to the general population matched for age and gender, much higher rates of the metabolic syndrome (MetS) and diabetes were observed for patients with schizophrenia. For MetS, the increase over time was similar to that of the general population. In contrast, the difference in the prevalence of diabetes in patients with schizophrenia and the general population dramatically and linearly increased from 1.6% in the 15–25 age-band to 19.2% in the 55–65 age-band. CONCLUSION: Thus, the current data suggest that on the one hand metabolic abnormalities are an inherent part of schizophrenic illness, as they are already present in first-episode patients. On the other hand, however, our results suggest a direct effect of the illness and/or antipsychotic medication on their occurence. The data underscore the need for screening for metabolic abnormalities in patients diagnosed with schizophrenia, already starting from the onset of the illness

Product innovations, advertising, and stock returns

Under increased scrutiny from top management and shareholders, marketing managers feel the need to measure and communicate the impact of their actions on shareholder returns. In particular, how do customer value creation (through product innovation) and customer value communication (through marketing investments) affect stock returns? This article examines, conceptually and empirically, how product innovations and marketing investments for such product innovations lift stock returns by improving the outlook on future cash flows. The authors address these questions with a large-scale econometric analysis of product innovation and associated marketing mix in the automobile industry. They find that adding such marketing actions to the established finance benchmark model greatly improves the explained variance in stock returns. In particular, investors react favorably to companies that launch pioneering innovations, that have higher perceived quality, that are backed by substantial advertising support, and that are in large and growing categories. Finally, the authors quantify and compare the stock return benefits of several managerial control variables. The results highlight the stock market benefits of pioneering innovations. Compared with minor updates, pioneering innovations have an impact on stock returns that is seven times greater, and their advertising support is nine times more effective as well. Perceived quality of the new car introduction improves the firm’s stock returns, but customer liking does not have a statistically significant effect.Promotional incentives have a negative effect on stock returns, indicating that price promotions may be interpreted as a signal of demand weakness. Managers can combine these return estimates with internal data on project costs to help decide the appropriate mix of product innovation and marketing investment.pre-prin

Masitinib Combined with Standard Gemcitabine Chemotherapy: In Vitro and In Vivo Studies in Human Pancreatic Tumour Cell Lines and Ectopic Mouse Model

International audienceBackground: Tyrosine kinases are attractive targets for pancreatic cancer therapy because several are over-expressed, including PDGFRα/β, FAK, Src and Lyn. A critical role of mast cells in the development of pancreatic cancer has also been reported. Masitinib is a tyrosine kinase inhibitor that selectively targets c-Kit, PDGFRα/β, Lyn, and to a lesser extent the FAK pathway, without inhibiting kinases of known toxicities. Masitinib is particularly efficient in controlling the proliferation, differentiation and degranulation of mast cells. This study evaluates the therapeutic potential of masitinib in pancreatic cancer, as a single agent and in combination with gemcitabine.Methodology/Findings: Proof-of-concept studies were performed in vitro on human pancreatic tumour cell lines and then in vivo using a mouse model of human pancreatic cancer. Molecular mechanisms were investigated via gene expression profiling. Masitinib as a single agent had no significant antiproliferative activity while the masitinib/gemcitabine combination showed synergy in vitro on proliferation of gemcitabine-refractory cell lines Mia Paca2 and Panc1, and to a lesser extent in vivo on Mia Paca2 cell tumour growth. Specifically, masitinib at 10 µM strongly sensitised Mia Paca2 cells to gemcitabine (>400-fold reduction in IC50); and moderately sensitised Panc1 cells (10-fold reduction). Transcriptional analysis identified the Wnt/β-catenin signalling pathway as down-regulated in the cell lines resensitised by the masitinib/gemcitabine combination.Conclusions: These data establish proof-of-concept that masitinib can sensitise gemcitabine-refractory pancreatic cancer cell lines and warrant further in vivo investigation. Indeed, such an effect has been recently observed in a phase 2 clinical study of patients with pancreatic cancer who received a masitinib/gemcitabine combination

Participatory varietal selection with improved pearl millet in West Africa

A reconnaissance survey and participatory varietal selection trials (PVS) were conducted in four major pearl millet-growing countries of the Sahel between 2001 and 2003. The studies aimed to identify farmers' preferences in improved pearl millet varieties, increase awareness, test new varieties and enhance farmers' access to the improved varieties. Farmers selected five out of 10 tested varieties, with preferred characteristics, namely, maturity cycles of 80-90 d in the Sahel and 90-100 d in the Sudanian agro-ecozones, acceptable grain yield, compact and long (30-100 cm) panicles, a large number of tillers with panicles, adaptation and an acceptable taste. Farmers indicated that their local varieties were of superior adaptation and taste. They mentioned that hindrances to uptake and sustained use of improved varieties were due to lack of awareness, traditional values, seed unavailability, early maturity, bird damage and lack of fertilizer. The strong genotype × environment interactions in the Sahel suggests that breeding should be directed towards producing varieties adapted to specific zones rather than for wide adaptation. Notably, since farmers often cultivate pearl millet without any soil amendments, it may be advisable to disseminate varieties as a package (with fertilizer and agronomic instructions) rather than as varieties alone in a PVS programme, in order to achieve the full potential of improved varieties. The PVS trials are synergistic to plant breeding in identifying varieties suitable for harsh environments, which are difficult to duplicate in the research station. However, in the absence of formal distribution seed systems in the trial countries, village- or community-based seed production of varieties selected by farmers appears critical to the sustainable adoption of selected varieties