Marketing Mix Model Research Articles

From academic research to marketing practice: Exploring the marketing science value chain

We aim to investigate the impact of marketing science articles and tools on the practice of marketing. This impact may be direct (e.g., an academic article may be adapted to solve a practical problem) or indirect (e.g., its contents may be incorporated into practitioners' tools, which then influence marketing decision making). We use the term “marketing science value chain” to describe these diffusion steps, and survey marketing managers, marketing science intermediaries (practicing marketing analysts), and marketing academics to calibrate the value chain.In our sample, we find that (1) the impact of marketing science is perceived to be largest on decisions such as the management of brands, pricing, new products, product portfolios, and customer/market selection, and (2) tools such as segmentation, survey-based choice models, marketing mix models, and pre-test market models have the largest impact on marketing decisions. Exemplary papers from 1982 to 2003 that achieved dual – academic and practice – impact are Guadagni and Little (1983) and Green and Srinivasan (1990). Overall, our results are encouraging. First, we find that the impact of marketing science has been largest on marketing decision areas that are important to practice. Second, we find moderate alignment between academic impact and practice impact. Third, we identify antecedents of practice impact among dual impact marketing science papers. Fourth, we discover more recent trends and initiatives in the period 2004–2012, such as the increased importance of big data and the rise of digital and mobile communication, using the marketing science value chain as an organizing framework.

From 4Ps to SAVE: A Theoritical Analysis of Various Marketing Mix Models

This paper intends to analyse and compare the SAVE (Solutions, Access, Value and Education) model of marketing mix with its predecessors. The main objective is to draw lines of distinction between the various models and try to figure out which model is more relevant in current scenario of business studies. It is not only intended to analyse the SAVE model for academic purposes, but also to analyse its impact on various business institutions, if brought into practice. The 4Ps (Product, Price, Place and Promotion) model has been around for many decades now and no other model has posed a serious threat to it so far, because of its ease of use and familiarity. Thus it will be interesting to see that whether the SAVE model can actually dethrone the 4Ps model in the years to come by and if it does, will it actually survive the test of time? Although SAVE model has been actually studied or suggested for B2B business only, we will try to provide insights about whether it can carve out a niche for itself in consumer markets as well.

Factor analysis on marketing mix of online pharmacies – Based on the online pharmacies in China

This article introduces the development of the online pharmacies in China and analyzes the marketing mix strategies of product, price, place and promotion, which are widely implemented by online pharmacies (n = 44) in China. The perception and acceptance of consumers toward marketing mix of online pharmacies in China by software SPSS 13.0 is also surveyed in this study. Lastly this article builds a marketing mix model of online pharmacies and derives seven common factors from the 37 marketing mix factors, namely, personal sales and service, payment method channel, price, sales promotion, OTC drugs and health foods, non-drugs and advertising.

Developing Marketing Strategy for Electronic Business by Using McCarthy's Four Marketing Mix Model and Porter’s Five Competitive Forces

Original Published AbstractConsidering the importance of marketing strategies in a competitive environment dominated by E-commerce and also limit the effective implementation of research results in terms of marketing mix in e-participation, can manage sales and marketing in order to implement effective marketing strategies and ultimately achieve organizational goals Sector clients and helped the market. Main focus marketing strategies, coordinate activities and allocate appropriate resources to provide marketing operational objectives of the company as a particular product market.Therefore, the main issue related to the realm of marketing strategy, include the specific purpose of determining property markets for a product family or a particular product, then, through the corporate marketing mix according to needs and demands of potential customers in its target market, competitive advantage search And creating synergy are.Considering the importance of marketing strategies in a competitive environment dominated by Electronic markets and also limit the effective implementation of research results in terms of marketing mix in e-participation, can manage sales and marketing in order to implement effective marketing strategies and ultimately achieve organizational goals Sector clients and helped the market. This study usesMcCarthy’s four marketing mix model and Porter’s five competitive forces model to identify strategies for Internetcompanies that respond to the five competitive forces and thereby achieve a competitive advantage. The study provides significant new insights into the development and implementation of e-business strategies that contribute to increased profit. Corrected AbstractE-commerce is growing worldwide and is considered one of the modes and methods of business. This initiative led to the creation of new firms has several advantages over using benefits and this is the motivation for this phenomenon. While e-commerce success in attracting customers for their goods and services, due to systematic scientific principles and techniques that utilize the marketing strategies say .Marketing strategies in electronic markets, it is one of the important issues in the field of new market research has been discussed. But in this very diverse field of view is presented. On the other hand, given that little research has been done in this area , So consider this strategy has increased the importance of, Entering the world of electronic commerce and the use of modern tools and technology in new areas of business, firms will be forced to employ new business strategies, to prepare for their new competitive pressures. The results show that in the domain of e-commerce, two PORTER 'S FIVE COMPETITIVE FORCES AND MCCARTHY ' S FOUR MARKETING MIX MODEL been instrumental in the formulation and development of marketing strategies. And variables used in the model to identify and prioritize and execute marketing strategies in the field of e-commerce is essential. Keywords : marketing, strategies, e-commerce, porter's five competitive forces ,mccarthy's four marketing mix model

Exploding the Legend of TV Advertising and Price Promotions

<h3>ABSTRACT</h3> The advertising and marketing communities traditionally have understood television advertising effectiveness and its relationship to in-store marketing tactics through small-market research or marketing-mix modeling. Although these studies have improved the quality of advertising-effectiveness research, they have done little to improve the tools marketers need to translate those insights on a larger scale and optimize their marketing allocations. With the proliferation of “big data,” researchers now have the ability to refine those tools and give marketers a more granular understanding of brand-purchase behavior and the impact of multiple marketing levers on in-store brand sales. This paper leverages the anonymous household-level purchase behavior data from 60 million households across the United States and the second-by-second measurement of television-viewing habits from more than 2 million set-top box households, and the current study applies actual (non-modeled) single-source, household-level data to demonstrate a methodology for optimizing the mix of television advertising and in-store marketing.

Analysis of Three Marketing Concepts For Restaurant Industries (A Case Study for Thai Restaurants in the United States)

The restaurant industry is the largest private-sector business in the United States. The sales of the industry are projected to be $558 billion by the end of 2008. It is said to be equal to 4% of the U.S. gross domestic product. As one of the players in the industry, the Thai Restaurant have increased the number of the restaurants that are operated in the U.S, but the rapid change in restaurant market could endanger this business in the future if the restaurant is not able to adjust with current market needs. In order to be able to make the adjustment, there are three concepts that the Thai Restaurant should analyze. First, is knowing the change in Americans’ eating trends, followed by conducting a market analysis, and thirdly, applying marketing mix model. These concepts will allow the Thai Restaurant to compete with other restaurants to obtain the American market.

Deriving consensus rankings via multicriteria decision making methodology

PurposeThis paper seeks to take a cautionary stance to the impact of the marketing mix on customer satisfaction, via a case study deriving consensus rankings for benchmarking on selected retail stores in Malaysia.Design/methodology/approachThe ELECTRE I model is used in deriving consensus rankings via multicriteria decision making method for benchmarking base on the marketing mix model 4P's. Descriptive analysis is used to analyze best practice among the four marketing tactics.FindingsOutranking methods in consequence constitute a strong base on which to found the entire structure of the behavioral theory of benchmarking applied to development of marketing strategy.Research limitations/implicationsThis study looks only at a limited part of the puzzle of how consumer satisfaction translates into behavioral outcomes.Practical implicationsThe study provides managers with guidance on how to generate a rough outline of potential marketing activities that can be used to take advantage of capabilities and convert weaknesses and threats.Originality/valueThe paper interestingly portrays the effective usage of multicriteria decision‐making and ranking method to help marketing managers predict their marketing trends.

Re-thinking and re-tooling the social marketing mix

This article considers the role of the four Ps marketing mix model in social marketing, arguing that given reconfiguration of the marketing mix in the mainstream marketing discipline, and the characteristics of social marketing, a re-thought and re-tooled social marketing mix is required. A brief review of the four Ps marketing mix model in the mainstream marketing and social marketing fields is presented. Criticisms of the four Ps model are then examined. It is argued that the four Ps marketing mix model is outdated for application to social marketing, and an alternative approach to the social marketing mix is proposed. It is posited that an expanded approach recognizing strategies such as relational thinking, and upstream social marketing activities would offer a more suitable approach. Using a more open minded social marketing mix less reliant on the four Ps model can help guide social marketing research and practice.

STRATEGIES FOR COMPETETIVE ADVANTAGE IN ELECTRONIC COMMERCE

Despite rapid and sustained development of electronic commerce, many companies doing e-business are still in the investment and brand-building phase and have yet to show a profit. However, as e-businesses shift their focus from building a customer base to increasing revenue growth and profitability, they should reevaluate their current business strategies, if any, and develop strategies that provide a clear path to profitability. This study uses McCarthy’s four marketing mix model and Porter’s five competitive forces model to identify strategies for Internet companies that respond to the five competitive forces and thereby achieve a competitive advantage. The study provides significant new insights into the development and implementation of e-business strategies that contribute to increased profit.

The Cross Attributes Flexible Substitution Logit: Uncovering Category Expansion and Share Impacts of Marketing Instruments

Different objectives such as category demand expansion or market share stealing warrant the use of different marketing instruments. To help brand managers make informed decisions, it is essential that marketing mix models appropriately measure their effects. Random Utility Models that have been applied to this problem might not be adequate because they do not allow the effects of marketing instruments of one brand to spillover to preference for competing alternatives. Additionally, they have the Invariant Proportion of Substitution (IPS) property, which in some situations imposes counter-intuitive restrictions on individual choice behavior. Recognizing that effects of marketing instruments can spill across brands in a category, we propose an alternative choice model that relaxes the IPS property: the cross attributes flexible substitution logit model. We apply the model in two very different empirical settings, i.e., consumer choices of brands of refrigerated yogurt, and prescription-writing choices of physicians in the hyperlipidemia category. In both settings the proposed model provides consistent evidence that certain marketing instruments produce sales gains primarily from growing the category pie, while others produce gains from stealing share. By contrast, the random coefficient logit and generalized nested logit models both predict that gains from all marketing instruments would have similar sources.

Marketing Mix Modeling for the Tourism Industry: A Best Practices Approach

AbstractThe intent of this paper is to introduce marketing managers and tourism researchers to an analytic tool used to optimize the allocation of a firm’s marketing budget in such a way that provides the greatest likelihood of producing the strongest return-on-investment. Marketing mix modeling combines advanced econometrics with marketing science to objectively measure the relative productivity of a complete set of marketing programs or initiatives to produce transient tourism sales. Discussed and demonstrated in this paper are the steps in performing such an analysis, how to avoid its major pitfalls, and the benefits that can be derived from the analysis. Extensions of the marketing mix method to include the effects of the social media and product driven strategies are briefly discussed.

Business value added through RFID deployment in retail: a synthesis, conceptual framework and research propositions

Retailers can achieve superior shop floor performance through deployment of RFID. Reduced stock out, reduced labour cost, reduced inventory cost, enhanced visibility, and increased customer satisfaction are some of the key benefits of RFID adoption. This paper aims to examine how retailers can adopt radio frequency identification (RFID) to achieve overall business excellence through value added-customer centric approach. The paper gives a better understanding of potential benefits of RFID deployment for retailers by presenting retail marketing mix model. This paper offers a conceptual framework for identifying business value added for a retailer upon the RFID deployment and formulates a list of propositions, which form the broad basis of an empirical research agenda. The paper provides an evaluation framework for NOPAT, ROI and EVA measurement for RFID initiatives. Future research may be directed to calculate economy value added (EVA) of such investment in RFID by retailers.

Can Old Media Enhance New Media?

ABSTRACT Allocating marketing budgets in the most efficient way remains one of the key challenges for any marketing executive. Especially in cases of online pure plays such as social networks, the trade-off between online channels (display advertising and search engine marketing) versus classic communication (television, radio, print) has been fervently discussed during the last decade. In practice, online channels are often being favored for their direct accountability in terms of cost per click. To prove the actual value of various channels, the authors present a marketing mix modeling case study examining the business impact of various communication channels and the role of other external factors that influence usage of the website.

Statistical modeling in a wider frame: A marketing primer

General limitations of traditional statistical modeling are considered and its insufficient relevance in explaining complex phenomena of social life is shown. The extended scheme of modeling – Compound Analytical Platform (CAP) – is briefly considered, with main elements such as classifier of typical statistical situations, statistical analysis and sociophysics as a way to reduce complex descriptions, simulation (including agent based models) as a key mechanism oriented on searching for real causes of the processes. These principles are applied to analyze one of the most popular tools in marketing – marketing mix models (MMM). Critics of the typical model’s versions from marketing and statistical points of view are presented and way to answer business questions beyond MMM described based on the proposed analytical platform. It is shown, that even in marketing, where statistical models play very important role and look reasonable, there are many methodological and technical difficulties to be overcome only in wider frame of modeling.

Empirical Evidence of TV Advertising Effectiveness

<h3>ABSTRACT</h3> In this article, three hypotheses were examined that, if accepted, would lead us to conclude that the effectiveness of TV advertising has declined over time. Seven different databases—accounting for a total of 388 case histories—were accessed to conduct a form of meta-analysis to address this issue. These databases include results from advertising-weight tests, marketing-mix modeling, copy testing, return-on-marketing analysis from quasi-experimental design, and media-planning tools. The evidence we studied does not support the acceptance of any of these hypotheses, leading us to conclude that impressions from TV advertising appear to be as effective as ever, even possibly increasing in effectiveness. In terms of specific marketing objectives, the evidence suggests that the impact of TV on sales lift appears to operate primarily by generating brand awareness, suggesting that an effective marketing plan that uses TV should do so in conjunction with multiple forms of marketing in order to impact all stages of the consumer purchase process.

Reconciling Marketing vs. Branding Return on Investment

Marketing ROI has been a topic of considerable debate between proponents of brand management and those of marketing accountability. As the brand management discipline works to leverage marketing investments to meet the challenge of an increasingly fragmented media audience, financial stakeholders of corporations demand a greater visibility into these investments. The prolific usage of scanner data based marketing mix modeling methods of marketing ROI measurement has generated additional pressure on brand-managers to demonstrate ROI on their marketing investments. Brand-managers justify their aversity to measuring marketing investments on the same ROI hurdles as other capital outlays on the basis of the long-term nature of marketing effect on sales, whereas financial stakeholders continue to evaluate those using short-term methods like marketing-mix models. This paper proposes leveraging consumer based equity measures to measure the long-term effect of marketing on sales in addition to the short-term effects measured by marketing-mix models utilizing a novel three-stage approach that is parsimonious and yet estimates a more complete measure of marketing ROI. An additional advantage would be to quantify the long-term sales impact of brand health metrics brand-managers track on a regular basis. This would bridge the gap that exists in how brands are measured and valued and the process of marketing budget allocation that eventually drives brand value.

An exploration of marketing tactics for turbulent environments

PurposeThe purpose of this paper is to propose that the choice of marketing tactics is influenced by the company's external environment. It aims to illustrate the marketing tactics suggested for a complex, turbulent environment, when marketing and the environment are viewed through a complexity lens.Design/methodology/approachA marketing mix model, derived from complexity literature, was assessed via a multiple case study to identify the type of marketing mix suggested for a complex, turbulent environment. The study was exploratory, using in‐depth interviews with two companies in the IT industry.FindingsThe results tentatively confirmed that the more successful company used a destabilizing marketing mix, and suggest that using complexity theory to develop marketing tactics could be helpful in turbulent environments.Research limitations/implicationsThe findings are limited by the study's exploratory, qualitative nature and the small sample. Generalizing should be done with care and therefore further research with larger samples and in different environments is recommended.Practical implicationsThe paper will benefit marketers by emphasizing a new way to consider future marketing activities of their companies. The model can assist marketers to identify the tactics to use, dependent on the nature of their environment.Originality/valueMost work on complexity in marketing has concentrated on strategy, with little emphasis on tactics and the marketing mix. Therefore, the paper is an important contribution to the understanding of marketing mix choices, of interest to both practising marketers and marketing academics.

Marketing mixes for digital products: a study of the marketspaces in China

There is an increasing attention to the study of marketing mixes for electronic products and services. It has been suggested in the literature that none of the established marketing models, including 4P, 4C and 4S, is appropriate for digital products in a digital marketspace. In order to evaluate the suitability of marketing mixes for digital products, three criteria are suggested in considering the great differences in product properties, transaction spaces and transaction processes. We investigate the suitability of three marketing mix models for each category of digital products in a digital marketspace in this paper. We examine 45 marketing tools for digital products in China. By studying within the framework of the three established marketing mixes, we have three interesting findings. First, the trialability of digital products correlates significantly with its promotional tool's quantity. Second, depending on the category of digital products, the three established models have a varied suitability. Third, different digital products have different levels of suitability in distributional channels according to their delivery mode.

Building Brands

Which marketing strategies are most effective for introducing new brands? This paper sheds light on this question by ascribing growth performance to firms' postlaunch marketing choices. We decompose the success of a new brand into its ultimate market potential and the rate at which it achieves this potential. To achieve this aim we formulate a Bayesian dynamic linear model (DLM) of repeat purchase diffusion wherein growth and market potential are directly linked to the new brand's long-term advertising, promotion, distribution, and product strategy. We perform the analysis on 225 new-brand introductions across 22 repeat-purchase product categories over five years to develop generalized findings about the correlates of new-brand success. We find that access to distribution breadth plays the greatest role in the success of a new brand, and that investments in distribution and product innovation lead to greater marginal increases in sales for new brands than either discounting, feature/display, or advertising. Moreover, distribution interacts with other strategies to enhance their effectiveness. These findings underscore the utility of extending marketing mix models of new-brand performance to include product and distribution decisions.

A marketing mix model for a complex and turbulent environment

Purpose: This paper is based on the proposition that the choice of marketing tactics is determined, or at least significantly influenced, by the nature of the company’s external environment. It aims to illustrate the type of marketing mix tactics that are suggested for a complex and turbulent environment when marketing and the environment are viewed through a chaos and complexity theory lens. Design/Methodology/Approach: Since chaos and complexity theories are proposed as a good means of understanding the dynamics of complex and turbulent markets, a comprehensive review and analysis of literature on the marketing mix and marketing tactics from a chaos and complexity viewpoint was conducted. From this literature review, a marketing mix model was conceptualised.Findings: A marketing mix model considered appropriate for success in complex and turbulent environments was developed. In such environments, the literature suggests destabilising marketing activities are more effective, whereas stabilising type activities are more effective in simple, stable environments. Therefore the model proposes predominantly destabilising type tactics as appropriate for a complex and turbulent environment such as is currently being experienced in South Africa. Implications: This paper is of benefit to marketers by emphasising a new way to consider the future marketing activities of their companies. How this model can assist marketers and suggestions for research to develop and apply this model are provided. It is hoped that the model suggested will form the basis of empirical research to test its applicability in the turbulent South African environment. Originality/Value: Since businesses and markets are complex adaptive systems, using complexity theory to understand how to cope in complex, turbulent environments is necessary, but has not been widely researched. In fact, most chaos and complexity theory work in marketing has concentrated on marketing strategy, with little emphasis on individual tactics and even less on the marketing mix as a whole. Therefore, this paper can be viewed as an important foundation for a new stream of research using chaos and complexity theory to better understand marketing mixes and the choice of marketing tactics for complex and turbulent business environments.