IDEAS home Printed from https://ideas.repec.org/a/inm/ormnsc/v18y1972i10pb485-b501.html
   My bibliography  Save this article

Estimating Dynamic Effects of Market Communications Expenditures

Author

Listed:
  • David B. Montgomery

    (Stanford University)

  • Alvin J. Silk

    (Massachusetts Institute of Technology)

Abstract

This paper is concerned with the problem of measuring market response to a "communications mix"--the various means which a firm employs to transmit sales messages to potential buyers. Distributed lag models are applied to time series data for an ethical drug to estimate the short-run, intermediate, and long-run effects on market share of expenditures made for journal advertising, direct mail advertising, and samples and literature. Important differences were found among the communications variables with respect to the magnitude and over-time pattern of effect each had on market share. Significantly, the results indicate that the average historic allocation of resources to alternative communication vehicles has been in inverse relation to measured market response. A variety of econometric checks on the models lends credibility to the results. The managerial implications of the findings are discussed.

Suggested Citation

  • David B. Montgomery & Alvin J. Silk, 1972. "Estimating Dynamic Effects of Market Communications Expenditures," Management Science, INFORMS, vol. 18(10), pages 485-501, June.
    • Handle: RePEc:inm:ormnsc:v:18:y:1972:i:10:p:b485-b501
    DOI: 10.1287/mnsc.18.10.B485
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/mnsc.18.10.B485
    Download Restriction: no
    File URL: https://libkey.io/10.1287/mnsc.18.10.B485?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ernst R. Berndt & Linda T. Bui & David H. Lucking-Reiley & Glen L. Urban, 1996. "The Roles of Marketing, Product Quality, and Price Competition in the Growth and Composition of the U.S. Antiulcer Drug Industry," NBER Chapters, in: The Economics of New Goods, pages 277-328, National Bureau of Economic Research, Inc.
    2. Nestor Shpak & Ihor Kulyniak & Maryana Gvozd & Yuliya Malynovska & Włodzimierz Sroka, 2020. "Estimation of the Marketing Activity of Banking Structures," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 68(1), pages 229-242.
    3. Leister, Amanda M. & Capps, Oral, Jr. & Rosson, C. Parr, III, 2010. "The Economic Effects of New-Product Beef Promotion in Guatemala," Journal of Food Distribution Research, Food Distribution Research Society, vol. 41(2), pages 1-11, July.
    4. Eelco Kappe & Ashley Stadler Blank & Wayne S. DeSarbo, 2014. "A General Multiple Distributed Lag Framework for Estimating the Dynamic Effects of Promotions," Management Science, INFORMS, vol. 60(6), pages 1489-1510, June.
    5. Kremer, Sara T.M. & Bijmolt, Tammo H.A. & Leeflang, Peter S.H. & Wieringa, Jaap E., 2008. "Generalizations on the effectiveness of pharmaceutical promotional expenditures," International Journal of Research in Marketing, Elsevier, vol. 25(4), pages 234-246.
    6. Melvin Woodley, 2021. "Decoupling the individual effects of multiple marketing channels with state space models," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 20(3), pages 248-255, June.
    7. Vinod Agarwal & Gilbert Yochum, 1998. "Tourism and advertising: Evidence from Virginia beach," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 4(4), pages 384-397, November.
    8. Little, John D. C., 1973. "Brandaid II," Working papers 687-73., Massachusetts Institute of Technology (MIT), Sloan School of Management.
    9. Lesscher, Lisan & Lobschat, Lara & Verhoef, Peter C., 2021. "Do offline and online go hand in hand? Cross-channel and synergy effects of direct mailing and display advertising," International Journal of Research in Marketing, Elsevier, vol. 38(3), pages 678-697.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ormnsc:v:18:y:1972:i:10:p:b485-b501. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.