Figure 15.

The ADBUDG model

Static advertisingsales response curve: input data Market share Maximum share at end End share with +50% advertising Initial share MS(t1) maint. adv. Status quo share MS(t) = MS(t1)

Minimum share at end

t1

Time

Market share MSmax +50% adv. MSt1 MSmin

Static advertisingsales response curve: graphic representation

Smaint.

+50%

Smax.

Advertising St

Dynamic advertisingsales response curve: graphic deduction of retention rate

MSt1 1 2 MSt+k MSmin

I=

2 1

t1

t+k

Time

Source: Little (1970).

Jean-Jacques Lambin, 2000. Market-driven Management, published by Macmillan Press

Figure 15.2

The advertising communication process

Product advertisement YES Perceive? NO

Products attributes relevant

YES

Change in probability of perception

Relevance of attribute (x1, x2, ..., xn)

Perceived amount of attribute (w1, w2, ..., wn) Attitude A = F(x, w, u)

Credibility of the claim (u1, u2, ..., un)

Other factors Needs Personal situation Product exposure Shopping Talk of friends Competitor ads (...)

Product experience

Delay

Purchase

Precipiting event

Source: Dalrymple and Parsons (1976, p. 462).

Jean-Jacques Lambin, 2000. Market-driven Management, published by Macmillan Press

Figure 15.3

Characteristics of advertising response functions

Quantity (q) Saturation level

(a)

Perception point Quantity (q)

Threshold point Copy A Copy B

Advertising rate (s) (b)

Advertising rate (s) Quantity (q) : Advertising retentions rate (c)

Time (t)

Jean-Jacques Lambin, 2000. Market-driven Management, published by Macmillan Press

Figure 15.4

Impact of a promotional advertising campaign on market share

Market share

0.304 0.30

+ 0.063

Gain in market share points

+ 0.036

0.25 0.241 Campaign duration Year 1 Year 2

+ 0.011 Market share trend

Year 3

Time (quarters)

Jean-Jacques Lambin, 2000. Market-driven Management, published by Macmillan Press

Figure 15.5

Sales impact of an advertising campaign

80 Phase I Phase II Phase III Phase IV

60

$58 Test + 23.4% $47 $47

40

$46

Control

20
Source: Cunningham (1965).

Jean-Jacques Lambin, 2000. Market-driven Management, published by Macmillan Press

Figure 15.6

Example of econometric demand function

(a)
0.565 0.494 0.260 0.134 0.588 0.088 0.190

qt = 0.155 . qt1 . yt . wt . xt . pt . vt . st

Where

qt : y : w : x : p : v : s : t :

sales per capita income weather conditions (rain) number of bottles sizes retail price (litre) visit frequency to retailers advertising exp. per inhabitant time

(b) sales litre/inh. q 8.0

6.0
0.565 0.190

4.0

qt = 2.024 qt1

st

2.0

1.0

2.0

3.0

4.0 10% increased budget % qt = 1.10 qt1

5.0

Maintenance budget qt = qt1

Advertising expenditures ($/hab., s)

Source: Lambin (1969).

Jean-Jacques Lambin, 2000. Market-driven Management, published by Macmillan Press

Figure 15.7

International comparison of creative styles

Aesthetic research, purity, beauty

JAP

GB

EU

Effectiveness, sales effect

GB

FR

EU

+F

Humour
EU
JAP

Imagination, fantasy, delirium

Source: de Maricourt (1994).
Jean-Jacques Lambin, 2000. Market-driven Management, published by Macmillan Press

FR