• Asia Marketing Journal
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• v.15 no.3
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• pp.53-77
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• 2013

As advertising and promotions are categorized as operating expenses, managers tend to reduce marketing budget to improve their short term profitability. Gauging the value and accountability of marketing spending is therefore considered as a major research priority in marketing. To respond this call, recent studies have documented that financial market reacts positively to a firm's marketing activity or marketing related outcomes such as brand equity and customer satisfaction. However, prior studies focus on the relation of marketing variable and financial market variables. This study suggests a channel about how marketing activity increases firm valuation. Specifically, we propose that a firm's marketing activity increases the level of the firm's product market information and thereby the dispersion in financial analysts' earnings forecasts decreases. With less uncertainty about the firm's future prospect, the firm's managers and shareholders have less information asymmetry, which reduces the firm's cost of capital and thereby increases the valuation of the firm. To our knowledge, this is the first paper to examine how informational benefits can mediate the effect of marketing activity on firm value. To test whether marketing activity contributes to increase in firm value by mitigating information asymmetry, this study employs a longitudinal data which contains 12,824 firm-year observations with 2,337 distinct firms from 1981 to 2006. Firm value is measured by Tobin's Q and one-year-ahead buy-and-hold abnormal return (BHAR). Following prior literature, dispersion in analysts' earnings forecasts is used as a proxy for the information gap between management and shareholders. For model specification, to identify mediating effect, the three-step regression approach is adopted. All models are estimated using Markov chain Monte Carlo (MCMC) methods to test the statistical significance of the mediating effect. The analysis shows that marketing intensity has a significant negative relationship with dispersion in analysts' earnings forecasts. After including the mediator variable about analyst dispersion, the effect of marketing intensity on firm value drops from 1.199 (p < .01) to 1.130 (p < .01) in Tobin's Q model and the same effect drops from .192 (p < .01) to .188 (p < .01) in BHAR model. The results suggest that analysts' forecast dispersion partially accounts for the positive effect of marketing on firm valuation. Additionally, the same analysis was conducted with an alternative dependent variable (forecast accuracy) and a marketing metric (advertising intensity). The analysis supports the robustness of the main results. In sum, the results provide empirical evidence that marketing activity can increase shareholder value by mitigating problem of information asymmetry in the capital market. The findings have important implications for managers. First, managers should be cognizant of the role of marketing activity in providing information to the financial market as well as to the consumer market. Thus, managers should take into account investors' reaction when they design marketing communication messages for reducing the cost of capital. Second, this study shows a channel on how marketing creates shareholder value and highlights the accountability of marketing. In addition to the direct impact of marketing on firm value, an indirect channel by reducing information asymmetry should be considered. Potentially, marketing managers can justify their spending from the perspective of increasing long-term shareholder value.

• Journal of Distribution Research
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• v.3 no.1
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• pp.7-29
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• 1998

Manufacturers want brand promotions at the stores. In contrast, retailers want promotions for the stores rather than for the brands since better store promotions can attract customers from the competing retail stores. In this paper, three scenarios are assumed for the promotions in terms of the allowances or the side-payments form the manufacturer to the retailer and the pass-through rate for the allowances being used for the brand promotions by the retailer. An analytical model for the marketing channel distribution is used for the analysis. Then, several marketing implications are suggested based on the findings.

• Information Systems Review
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• v.7 no.1
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• pp.153-171
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• 2005

As the mobile telecommunications industry in Korea boasts record-high revenue from its businesses, consumers and other industries are looking for new business applications and opportunities using mobile technologies. Many firms are seeking guidelines or business models for an effective use of this new mobile technology in their operations. This paper reviews the characteristics that distinguish mobile marketing, and analyzes marketing approaches which utilize the potential of the new mobile technologies. This paper shows that the new mobile advertising channel is not only complementary to traditional marketing channels, but also delivers benefits for multiple parties involved in mobile marketing. The key success factors in the new OB (Oriental Brewery) marketing campaign include a shortening of the stages in the AIDMA model and a broadening of customer contact points by exposing the brand through well-coordinated marketing efforts. The OB case shows that a mutually beneficial relationship between co-marketing participants can lead to a win-win marketing strategy. It also highlights that collaborative channel management in mobile marketing methodology is critical for successful mobile marketing.

• Journal of Distribution Science
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• v.21 no.5
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• pp.1-9
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• 2023

Purpose: Marketing and especially distribution channels has proved challenging for small and medium-sized enterprises (SMEs) worldwide due to its exorbitant cost. The objective of this study is to access the role and impact of digital marketing as a new distribution channel in companies located in Kosovo. Research design, data and methodology: To achieve the objective of the research, data was collected from 64 respondents/participants working in different organizations and sectors. Results: The result of the data collected showed that digital marketing plays a huge role and an effective medium in distribution of products and services, and helps in boosting sales of companies. The results showed that this form of marketing helps with retention of customers and cost effectiveness. Conclusions: The managerial implication of this study is that it is believed that customers in the topical conversation region are impacted by Kosovo businesses and their online marketing initiatives. The results of this study suggest that marketers and managers should take advantage of social media in order to accomplish the study's main objective. However, for enhanced productivity and high-level effectiveness of Digital marketing in Kosovo, there should be proper sensitization on the available digital marketing options and how it can be done.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.40 no.1
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• pp.105-113
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• 2017

Network externality can be defined as the effect that one user of a good or service has on the value of that product to other people. When a network externality is present, the value of a product or service is dependent on the number of others using it. There exist asymmetries in network externalities between the online and traditional offline marketing channels. Technological capabilities such as interactivity and real-time communications enable the creation of virtual communities. These user communities generate significant direct as well as indirect network externalities by creating added value through user ratings, reviews and feedback, which contributes to eliminate consumers' concern for buying products without the experience of 'touch and feel'. The offline channel offers much less scope for such community building, and consequently, almost no possibility for the creation of network externality. In this study, we analyze the effect of network externality on the competition between online and conventional offline marketing channels using game theory. To do this, we first set up a two-period game model to represent the competition between online and offline marketing channels under network externalities. Numerical analysis of the Nash equilibrium solutions of the game showed that the pricing strategies of online and offline channels heavily depend not only on the strength of network externality but on the relative efficiency of online channel. When the relative efficiency of online channel is high, the online channel can greatly benefit by the network externality. On the other hand, if the relative efficiency of online channel is low, the online channel may not benefit at all by the network externality.

• Journal of the Korea Society of Computer and Information
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• v.24 no.8
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• pp.159-166
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• 2019

In this paper, we propose takes network marketing as a starting point for analysis, uses the theory of purchasing behavior and enterprise performance to analyze the network marketing strategy of artistic products, incorporates the practical problems encountered by some artistic products enterprises in Zhejiang Province in network marketing into theoretical research. The theoretical model of network marketing strategy acting on enterprise performance through the intermediary effect of purchasing behavior is constructed. This paper conducted an in-depth survey of three representative core domestic companies engaged in Internet marketing of artistic products, and analyzed the questionnaires of 357 respondents. The initial model was verified by statistical tools such as SPSS and AMOS, and three conclusions were drawn: Firstly, network marketing strategies of different dimensions have different effects on purchasing behavior: pricing strategy and product strategy have significant positive effects on impulse purchasing behavior, but channel strategy has no significant impact on impulse purchasing behavior; Channel strategy and product strategy have a significant positive impact on repeated purchasing behavior, but pricing strategy has no significant impact on repeated purchasing behavior. Second, user purchasing behavior has a significant positive impact on enterprise performance. Third, network marketing strategies of different dimensions have significant direct and positive impact on enterprise performance.

• Journal of Information Technology Services
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• v.13 no.4
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• pp.377-396
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• 2014

There is a phenomenon that the consumers from all over the countries are using the Korean online shopping malls, which has settled as a distribution industry. To get the attention of the consumers from other countries, the marketing strategy is important in order for the online shopping malls to go advance abroad. The purpose of this study is to overview the Pinterest, which is a shopping-oriented Social Network Service (SNS) based on the image content. The Pinterest is a valuable online shopping mall marketing channel. By looking at the background growth and feature of service, the existence of the mega SNS as a center in the social business is to see how Pinterest is targeting a niche market. As a result of this study, Pinterest has the advantage against other SNS for joining with online shopping malls because a tendency of the traffic referrals from Pinterest is increasing and the average of the cost of the purchase is high. Therefore, this study is reflecting various cases of utilizing the online shopping malls. In conclusion, Pinterest represents an illustrative case of effective marketing channel of the online shopping malls.

• Journal of Korean Society of Forest Science
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• v.104 no.2
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• pp.319-331
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• 2015

The marketing system of non-timber forest products has been criticized as it mainly depends upon private local dealers, having too many steps between producers and consumers, we believe, which makes it less efficient. Meanwhile, there were only a few empirical studies of how they are delivered to consumers. In order to devise and implement targeted forest policies efficiently, it is quite necessary to understand the distribution channel of them. We analyzed the distribution channel of chestnut, bitter persimmon, oak mushroom, and wild greens by data analysis, field and phone survey, and then drew an implication for improving the marketing system. First of all, the number of middle step has to be reduced and the direct transaction has to be expended. In addition, we need to have more active involvement of Forest cooperative in production sites, adding values by processing, and the upgrade of current marketing centers of non-timber forest products, which have been launched since 2004 by Korea Forest Service.

• Agribusiness and Information Management
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• v.9 no.2
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• pp.1-11
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• 2017

Introduction: To analyze the impact of marketing losses on efficiency in transacting banana in Kurnool district of SRZ in Andhra Pradesh and to assess the opinions of the farmers on the constraints in transacting banana. Research back ground, Materials and Methods: The study relies exclusively on primary information obtained from the banana farmers of Kurnool District. Purposive sampling procedure was followed for the selection of the study area. Top two mandals in the district and top two villages in each mandal are selected in accordance with the area under cultivation of banana. Probability proportion to size was followed regarding the selection of sample farmers and accordingly 60 marginal, 37 small and 23 other farmers were selected and thereby, the total sample size was 120. Result and Discussion: Three marketing channels were identified in the marketing of banana in Kurnool district viz., Producer ${\rightarrow}$ Local-exporter ${\rightarrow}$ Wholesaler ${\rightarrow}$ Retailer ${\rightarrow}$ Consumer (Channel-I), Producer ${\rightarrow}$ Wholesaler ${\rightarrow}$ Cart-vendor ${\rightarrow}$ Consumer (Channel-II) and Producer ${\rightarrow}$ Juice-holder ${\rightarrow}$ Consumer (Channel-III). With the inclusion of marketing losses in the price spread analysis of banana in all the three channels, the marketing costs of all the intermediaries were increased and thereby, the farmer's share in consumer's rupee and Net Marketing Margins of the agencies are on the decline. So, without inclusion of marketing losses, the farmer's share in consumer's rupee and Net Marketing Margins of all the agencies are overvalued. The higher the marketing losses, the more is the negative impact on farmer's net selling price, net marketing margins of the intermediaries and marketing efficiency. The sample farmers are facing major problems in marketing of banana like frequent price fluctuations, unorganized marketing and lack of transportation facilities on priority basis. Suggestions: It is suggested to educate the farmers regarding the optimum maturity index for harvest, use of mechanical harvesters, proper placement of fruits during storage and ripening, better packaging and cushioning technologies to absorb shocks during transportation, strengthening of storage facilities and transport facilities, encourage co-operative marketing etc., to promote marketing efficiency of banana in the study area.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.32 no.3
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• pp.168-177
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• 2009

The proliferation of the internet and electronic commerce has given the manufacturers the opportunity of direct marketing. This study analyzes the decision of manufacturers regarding whether to sell the products through independent sales company or to sell the products to the consumer directly. To do this, a new demand function is proposed and sub and super games are modeled and analyzed based on the demand function. By analyzing the Nash equilibria, it is shown that the manufacturers' decision of direct or indirect marketing not only depends on the competitiveness between the products but the absolute and relative marketing capabilities of the manufacturers. It is also shown that, in some cases, the manufactures have incentive to rise the competitiveness between the products to maximize the channel profit.