- ASA 2021 Statistics and Information Systems for Policy Evaluation
- A cura di Bruno Bertaccini, Luigi Fabbris, Alessandra Petrucci
The effectiveness of marketing tools in a consumer goods market in Italy during the Great Recession (2010-2015)
- Giorgio Tassinari
- Demetrio Panarello
- © 2021 Author(s) |
- CC BY 4.0
- DOI: 10.36253/978-88-5518-461-8.20
In the case of markets characterized by a stationary primary demand, the relevant dimension for measuring a company’s success is represented by market shares. The paper aims to build and comment on a model that gauges the competitive effects of marketing maneuvers on market shares, with reference to tea-based beverages in Italy in the period November 2010 – October 2015. This analysis will be instrumental in establishing the effectiveness of marketing policies based on promotions or advertising. We estimate such a model on weekly data provided by IRI Infoscan and Nielsen, involving the top five brands in the Italian market. After a descriptive analysis and a stationarity test, we estimate a Multinomial Logit model, making use of the Seemingly Unrelated Regressions method. The results allow us to identify the effectiveness of each brand’s marketing policies. Moreover, they enable us to derive the matrices of direct and cross elasticities of brands’ market shares with respect to the main marketing tools (price, promotions, distribution, advertising investments) and to compare basic and average market shares. Based on these results, it is therefore possible to identify the market’s competitive structure, revealing the most incisive factors to be price and weighted distribution, while advertising investments are significant in only a few cases and elasticities are remarkably low. The competitive structure appears to be of a horizontal type (i.e., cross elasticities do not vary greatly).
- Keywords:
- Stationary demand,
- Market shares,
- Competitive structure,
- Multinomial Logit,
- Seemingly Unrelated Regressions,
University of Bologna, Italy - ORCID: 0000-0002-5161-7989
University of Bologna, Italy - ORCID: 0000-0003-1667-1936
- Cooper, L.G., Nakanishi, M. (1988). Market Share Analysis: Evaluating Competitive Marketing Effectiveness. Kluwer Academic Publishing, Boston, USA.
- Deleersnyder, B., Dekimpe, M.G., Steenkamp, J.E.M., Leeflang, P.S. (2009). The Role of National Culture in Advertising’s Sensitivity to Business Cycles: An Investigation across Continents. Journal of Marketing Research, 46(5), pp. 623-636.
- Freo, M., Tassinari, G., Tono, A.G. (2020). Advertising Effectiveness during the Great Recession: the Case Study of Three FMCG Italian Food Categories. WSEAS Transactions on Business and Economics, 17, pp. 368-373. Istat (2021). Official Website. www.istat.it.
- Kashmiri, S., Mahajan, V. (2014). Beating the recession blues: Exploring the link between family ownership, strategic marketing behavior and firm performance during recessions. International Journal of Research in Marketing, 31(1), pp. 78-93.
- Lamey, L., Deleersnyder, B., Steenkamp, J.E.M., Dekimpe, M.G. (2012). The effect of businesscycle fluctuations on private-label share: what has marketing conduct got to do with it? Journal of Marketing, 76(1), pp. 1-19.
- Streeck, W. (2016). How Will Capitalism End? Essays on a Failing System. Verso, New York, USA.
- Tooze, A. (2018). Crashed: How a Decade of Financial Crises Changed the World. Penguin, London, UK.
- Van Heerde, H.J., Gijsenberg, M.J., Dekimpe, M.G., Steenkamp, J.E.M. (2013). Price and Advertising Effectiveness over the Business Cycle. Journal of Marketing Research, 50(2), pp. 177-193.
Informazioni sul capitolo
Titolo del capitolo
The effectiveness of marketing tools in a consumer goods market in Italy during the Great Recession (2010-2015)
Autori
Giorgio Tassinari, Demetrio Panarello
Lingua
English
DOI
10.36253/978-88-5518-461-8.20
Opera sottoposta a peer review
Anno di pubblicazione
2021
Copyright
© 2021 Author(s)
Licenza d'uso
Licenza dei metadati
Informazioni bibliografiche
Titolo del libro
ASA 2021 Statistics and Information Systems for Policy Evaluation
Sottotitolo del libro
BOOK OF SHORT PAPERS of the on-site conference
Curatori
Bruno Bertaccini, Luigi Fabbris, Alessandra Petrucci
Opera sottoposta a peer review
Anno di pubblicazione
2021
Copyright
© 2021 Author(s)
Licenza d'uso
Licenza dei metadati
Editore
Firenze University Press
DOI
10.36253/978-88-5518-461-8
eISBN (pdf)
978-88-5518-461-8
eISBN (xml)
978-88-5518-462-5
Collana
Proceedings e report
ISSN della collana
2704-601X
e-ISSN della collana
2704-5846