John Philip Jones, bestselling author of What's in a Name? and When Ads Work, has edited an authoritative handbook of research procedures that determine effective advertising. All participants in the advertising process - clients, media and agencies - are fully represented in this volume. Chapter authors reflect a global mix of academic and professional backgrounds and include: Leo Bogart, Andrew Ehrenberg, Simon Broadbent, Herbert Krugman, and the Editor John Philip Jones. Most chapters have been specifically written for this volume and are complemented by a few adaptations of classic articles.
Margin and Price Effects of Manufacturers' Brand Advertising
A brand's retail price depends on the costs and margins of its manufacturer as well as those of the wholesalers and retailers that distribute it to household consumers. What complicates predicting the effects of advertising is that it can have very different effects on the costs, margins, and prices of these firms. For example, advertising may raise the manufacturer's selling price because it increased the firm's margin by more than it reduced its costs. Yet the brand's retail price may have been lowered because the manufacturer's advertising reduced retailers’ markups by more than it increased the manufacturer's selling price. Even within the manufacturing sector, advertising typically exerts a contrary ...