The long-term effect of marketing strategy on brand sales

B.M. Ataman, H.J. van Heerde, C. Mela

Research output: Contribution to journalArticleScientificpeer-review

Abstract

Few studies have considered the relative role of the integrated marketing mix (advertising, price promotion, product, and place) on the long-term performance of mature brands, instead emphasizing advertising and price promotion. Thus, little guidance is available to firms regarding the relative efficacy of their various marketing expenditures over the long run. To investigate this issue, the authors apply a multivariate dynamic linear transfer function model to five years of advertising and scanner data for 25 product categories and 70 brands in France. The findings indicate that the total (short-term plus long-term) sales elasticity is 1.37 for product and .74 for distribution. Conversely, the total elasticities for advertising and discounting are only .13 and .04, respectively. This result stands in marked contrast to the previous emphasis in the literature on price promotions and advertising. The authors further find that the long-term effects of discounting are one-third the magnitude of the short-term effects. The ratio is reversed from other aspects of the mix (in which long-term effects exceed four times the short-term effects), underscoring the strategic role of these tools in brand sales.
Original languageEnglish
Pages (from-to)866-882
Number of pages17
JournalJournal of Marketing Research
Volume47
Issue number5
Publication statusPublished - 2010

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Marketing strategy
Price promotions
Elasticity
Discounting
Marketing mix
Guidance
Long-term performance
Efficacy
Marketing
Expenditure
France
Transfer function model
Integrated marketing
Product category
Scanner data

Cite this

Ataman, B. M., van Heerde, H. J., & Mela, C. (2010). The long-term effect of marketing strategy on brand sales. Journal of Marketing Research, 47(5), 866-882.
Ataman, B.M. ; van Heerde, H.J. ; Mela, C. / The long-term effect of marketing strategy on brand sales. In: Journal of Marketing Research. 2010 ; Vol. 47, No. 5. pp. 866-882.
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Ataman, BM, van Heerde, HJ & Mela, C 2010, 'The long-term effect of marketing strategy on brand sales', Journal of Marketing Research, vol. 47, no. 5, pp. 866-882.

The long-term effect of marketing strategy on brand sales. / Ataman, B.M.; van Heerde, H.J.; Mela, C.

In: Journal of Marketing Research, Vol. 47, No. 5, 2010, p. 866-882.

Research output: Contribution to journalArticleScientificpeer-review

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