Abstract
A critical aspect of the advertising budgeting process involves competitive issues—anticipated spending levels of major competitors, effects that competitive advertising may have on the firm’s market share, sales, and profit, and the interactive nature of a competitor’s advertising with a firm’s own. Competition is ignored only at the firm’s peril; empirical studies (e.g., Little 1979; also see the empirical survey below) have shown quite clearly that competitive advertising can have a direct, and negative, effect on a company’s market share. Also, management practice appears to recognize the importance of competition; in a survey of leading U.S. advertisers, Lancaster and Stern (1983) reveal that, among various general characteristics describing the advertising budgeting process, “competitive effects” were considered by 52% of the sample (second only to “communication effects” at 55%).
Keywords
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
Author information
Authors and Affiliations
Rights and permissions
Copyright information
© 1991 Springer Science+Business Media Dordrecht
About this chapter
Cite this chapter
Erickson, G.M. (1991). Advertising and Competition. In: Dynamic Models of Advertising Competition. International Series in Quantitative Marketing, vol 4. Springer, Dordrecht. https://doi.org/10.1007/978-94-017-1314-6_1
Download citation
DOI: https://doi.org/10.1007/978-94-017-1314-6_1
Publisher Name: Springer, Dordrecht
Print ISBN: 978-94-017-1316-0
Online ISBN: 978-94-017-1314-6
eBook Packages: Springer Book Archive