The Long-Term Effect of Marketing Strategy on Brand Sales - Assignment Example

The Long Term Effect of Marketing Strategy on Brand Sales The Long Term Effect of Marketing Strategy on Brand Sales Article ReviewThis particular study utilized pre-existing data on the effect of marketing strategy on brand sales. The study population in this case is a minor component of the study. The investigators carried out interviews on senior research managers in a bid to obtain their view on the research objectives. The senior research managers who were interviewed were selected from a wide range of consumer packaged goods companies/firms.

The interviews that were conducted revealed that the senior research managers placed a similar emphasis on discounting and advertising to what the data obtained by the study revealed. Interestingly, the managers expressed uncertainty about whether discounting and advertising play a major role in brand performance compared to distribution and product. The research methods employed in this particular study are both qualitative and quantitative in nature. The quantitative aspect of the study is evidenced by the expression of the data numerically and then statistical methods used to analyze it.

Additionally, the observations made by the investigator are clearly numeric and have been organized and represented in the form of graphs that form the basis of analysis. The variables are both observable and measurable and vary across the different firms that contributed to the data pool utilized. Interviews (as a qualitative research method) have been utilized to obtain critical information by the investigators of this study. Qualitative methods when used in combination with quantitative methods help to better understand and interpret complex reality that relates to a particular social phenomenon.

Additionally, qualitative methods help in understanding the implications of data that is quantitative in nature. In this particular study, the investigators interviewed the senior research managers and sought to understand why the managers chose to use advertising and discounting over product and distribution even though there is evidence that product and distribution have a bigger effect on long term brand performance. The evaluation tools that were utilized by the investigators are often used in the analysis of data that is quantitative in nature.

The model developed by the investigators allowed the study to get critical insights into the effect of the four factors (advertising, product, distribution and discounting) on brand sales both in the long and short term. The evaluation tools developed by the investigators are based on rich literature and have a well calculated margin of error. This in turn increases the reliability and accuracy of the findings of the study. The evaluation tools utilized allowed the investigators to differentiate the long term marketing effects from the short term marketing effects.

They also enabled the investigators to differentiate the chain effects from the brand effects in cases where it is appropriate to do so. In order have a control of the changes that occur in the long term marketing strategies of brands that are competing, the investigators included and applied another tool of evaluation. In including this tool, the researchers were able to have a certain degree of control on the changes that occur in the marketing strategies (long term). This is critical, essentially because the sales of the products are a function of the marketing strategies employed.

Although the evaluation tools utilized met the objectives of the investigators, the use of these tools is limited to small numbers of periods, variables and observations. The investigators concluded that product and distribution have a greater effect on brand performance than the traditional advertising and discounting. A closer look at their findings reveals that product (one of the market variables) has an elasticity of 1.37 (60%) and distribution is 32% (0.74). In sharp contrast, advertising had 6% (0.13) and discounting 2% (0.04). On average, all of the market mix variables have a positive short term effect on sales.

Again the strongest effects are on distribution (0.016) and product line length with (0.015). Advertising had (0.008) and discounting (0.0001). These findings reveal the wide misconception held by marketers with regard to the significance of each of the marketing variables to long term brand performance. The investigators also found out that dynamics are present through feedback of performance and inertia in spending. The investigators of this study made a great effort in obtaining data and analyzing it.

The model that was developed and used for this particular study recognized the many surrounding circumstances and variables that may have an effect on the long term brand performance of the two products. The study made many assumptions while developing their model. In effect, the reliability and degree of accuracy of this study are high. The model was well developed and utilized by the study. In as much as the model met its objective and revealed pertinent information with regard to the marketing variables (widely held misconceptions), the study comes across as being too theoretical.

As correctly identified by the investigators, this approach cannot be applied to large firms which have huge numbers of observations and variables. Perhaps in future a better model can be developed and utilized. Such a model will include several aspects of marketing strategy effects on brand performance that this study failed to identify. For example effects of marketing strategy in non consumer packaged products and the quality of brands as a brand performance driver. References Ataman, B.M.

, Harald, J.H., & Mela, C.F. (2010). The long term effect of marketing strategy on brand sales. Journal of Marketing Research, 47, 866-882.