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A statistical analysis for the sales effect of comparative advertising It is a popular myth that the sales effect of advertising are too difficult to measure The pre-condition for successful measurement of the sales effect of advertising are -good sales data -variations over time in the level of advertising An econometric model has a single variable that I am trying to explain called dependent variable This would be the brand volume share or a retailers sales called NET sales To do this I use a number of explanatory variables typically the advertising of the brand relative to competitors called comparative advertising Comparative advertising is an advertising appeal that consists of explicitly comparing one product brand to a competitive brand ie taking the competitor head-on and comparing its respective products presumably to show the advertisers superiority Particularly in competitive markets comparative advertising can be used to emphasize ones strengths In the ads that claim product A is better than product B every mention of a competitors name or product in an advertisement increases the probability that the audience will think the ad is for the competitor This is not to say that good comparative advertising is impossible Economist Marvin Goldberg in Penn state university stated on his book Marketing VP Wine Spectrum 1997 Comparative ads are good when youre new or small but when youre the standard it just give a lot free publicity to your competitors In my project I will test this hypothesis by analyzing two competitive brand cases one for standard product case Coke vs Pepsi and the other for new and small product case Taco Bell vs Del Taco in food and beverage market The situation is both Coke and Pepsi has been trying to gain market share in beverage market with different marketing strategies Pepsi has always taken the lead in developing new product but Coke soon learned their lesson and started to do the same Pepsi has
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