The Effects of Search Advertising on Competitors: An Experiment Before a Merger

Author(s):  
Joseph Golden ◽  
John Joseph Horton

We report the results of an experiment in which a company, Firm Vary, temporarily suspended its sponsored search advertising campaign on Google in randomly selected advertising markets in the United States. By shutting off its ads, Firm Vary lost customers, but only 63% as many as a nonexperimental estimate would have suggested. Following the experiment, Firm Vary merged with its closest competitor, Firm Fixed. Using combined data from both companies, the experiment revealed that spillover effects of Firm Vary’s search advertising on Firm Fixed’s business and its marketing campaigns were surprisingly small, even in the market for Firm Vary’s brand name as a keyword search term, where the two firms were effectively duopsonists. This paper was accepted by Eric Anderson, marketing.

Author(s):  
Katina Manko

The Avon Lady was a woman who sold cosmetics door-to-door and earned commissions on her sales. In the 1950s, she became famous in a long-running advertising campaign that featured a two-chime doorbell, “Ding Dong!,” followed by the greeting “Avon Calling!” At that time, more than 250,000 women worked as Avon Ladies, and together they represented the largest female direct sales force in the world. Avon began as the California Perfume Company in 1886. Its founder, David McConnell, had sought to provide women with an independent business opportunity largely hoping to soften the seedy reputation of itinerant peddlers. When the company created the Avon brand of cosmetics in the 1930s, changing its name to Avon Products in 1939, it stood as a leader in the direct selling industry and the only company to hire women exclusively as its representatives. This history explores the business of those representatives and the way they were managed. In the second half of the twentieth century, Avon became the largest direct sales company in the United States, spurred by a growing white suburban market. Avon hesitated until the late 1960s to develop recruiting and sales in the African American market, but by the 1970s it was regarded as a leader in affirmative action programs to diversify its workplace and promote women in management. Still, Avon’s executive suite remained a male preserve until Andrea Jung became its first female CEO in 1999. Although Avon closed its doors in 2016, it had earned a solid reputation as a company by women, and for women.


Author(s):  
Hervé Vanel

This chapter discusses the history of Muzak. The Oxford English Dictionary defines Muzak as “the proprietary name of a system of piped music for factories, restaurants, supermarkets, etc.; also used loosely, with small initial, to designate recorded light background music generally.” Muzak “proper” owes its name to General George Owen Squier (1865–1934), a chief signal officer in the United States Army who, in 1922, founded Wired Inc., a company “employ[ing] electric power lines to transmit news programs, music, lectures, general entertainment and advertising directly into private homes.” In 1934, inspired by the catchy, popular brand name of Kodak, Squier himself renamed his company Muzak. Since then, the brand name Muzak has eased itself into the vernacular language to become a common name denoting an entire genre of music known for being bad. Despite the company's relentless efforts to improve or simply to correct its image, the reputation of Muzak remains frankly disastrous.


2016 ◽  
Vol 8 ◽  
pp. 46-52 ◽  
Author(s):  
Justyna Starostka

There are many roles that design can play in organisations. It can be source of good marketing strategy, and designer by himself can be a promotional tool for a company. Thanks to those actions companies can gain publicity, media attention and good PR.On the second level, design can be perceived as ‘process of making things better’. In this case companies can achieve more effective product development process, new tools and technologies.On the third level we have the situation when designer work alongside with company managers with the whole business concept. At this level, designers’ work looks more like a brand consultant, a strategist. In this approach design should be reflecting certain brand name and brand values.As our study presented, Swedish companies operate on those two, higher levels, while Polish still limit the scope of design. We strongly believe, that Polish companies, as they gain more experience with design activities, will be more likely to perceive design in this more mature approach. In the meantime, presenting best practices from companies from other, more mature countries could be a good way of promoting design as a strategic asset rather than promotional tool. We believe that in order to fasten this process, Polish companies should as follows:1. Work more often with external and foreign designers;2. Expand the area of designer responsibilities in companies;3. Place the responsibility for design in hands of professional design managers.


2019 ◽  
Vol 118 (1) ◽  
pp. 36-41
Author(s):  
Jung-Woo Lee ◽  
Seung-Cheon Kim ◽  
Sung-Hoon Kim ◽  
Jin-Ho Lim

Background/Objectives: In this study, research to improve efficiency of online advertising market, we would like to propose a new performance index called "Leakage Ratio" which can increase the efficiency of advertisement. Methods/Statistical analysis: Naver, the Internet portal site in Korea, is the most influential medium for online keyword search advertising. In this study, Leakage Ratio management is applied to online keyword search ads for five medium and large size online shopping malls at Naver. Based on the performance trend of each search keyword, we tried to improve the efficiency of the whole advertisement by changing the bid of the low efficiency keyword.


2019 ◽  
Vol 118 (8) ◽  
pp. 308-314
Author(s):  
Jung-Woo Lee ◽  
Seung- Cheon ◽  
Sung-Hoon Kim ◽  
Jin-Ho Lim

In this study, research to improve efficiency of online advertising market, we would like to propose a new performance index called "Leakage Ratio" which can increase the efficiency of advertisement. Methods/Statistical analysis: Naver, the Internet portal site in Korea, is the most influential medium for online keyword search advertising. In this study, Leakage Ratio management is applied to online keyword search ads for five medium and large size online shopping malls at Naver. Based on the performance trend of each search keyword, we tried to improve the efficiency of the whole advertisement by changing the bid of the low efficiency keyword.


Author(s):  
Chandan Saini ◽  
Ashish Miglani ◽  
Pankaj Musyuni ◽  
Geeta Aggarwal

Regular inspections are carried out to ensure system conformity by the Food and Drugs Regulatory Authority (FDA) of the United States one of the most stringent regulatory authorities in the world. The inspectors send Form 483 to the management after the inspection, detailing the inappropriate conditions. Because the FDA guidelines are difficult to comply with, a company can contravene the regulations. If any significant infringements can affect the protection, quality, effectiveness, or public health of the drug is identified, the FDA issues advice to the company. Warning Letters (WL) shall be an official notification of non-compliance with federal law within a period to be issued by manufacturer, clinician, distributor, or responsible person in the company. The delivery of a letter has a considerable impact on the company's reputation and position in the market. Inadequate WL reactions could lead to a refusal, import denial, memorandum or even conviction and order. A brief study was conducted in this document of Form 483 and WL for four years (2017–2020) on an understanding the regulatory provisions.


2003 ◽  
Vol 29 (4) ◽  
pp. 525-542
Author(s):  
Merri C. Moken

The use of pharmaceutical products in the United States has increased more than the use of any other health resource from 1960 to 1990. In excess of 9,600 drugs were on the market in 1984, and the Food and Drug Administration (“FDA”) approves approximately 30 new drugs and countless new applications for alterations of already existing drugs each year. In 2001, the $300 billion pharmaceutical industry sold $154 billion worth of prescription drugs in the United States alone, nearly doubling its $78.9 billion in sales in 1997. With such a rapid increase in market domination and expenditures, the U.S. government and many hospitals have focused their attention on the sales and pricing practices of pharmaceutical companies, as well as other potential factors contributing to these escalating prices. One such cause of the steadily increasing prices of brand name pharmaceuticals is the sale of fake or counterfeit pharmaceuticals (also called “look-alike” drugs).


2017 ◽  
Vol 20 (2) ◽  
pp. 5-19
Author(s):  
Damian Kaźmierczak

Using a sample of 1,705 convertible bonds issued by manufacturing and service companies from the United States (1,138 issues); Europe (270); and Asia (297) between 2004 and 2014 this paper investigates the role of callable convertibles in the corporate investment process. This research shows first that callable convertibles are used to finance investment projects particularly by American firms which may exercise new investment options to improve poor financial performance. Secondly, the same strategy may be followed by European companies, but they seem not to carry out investments on as large a scale as American firms. Thirdly, the research results do not provide evidence that Asian enterprises use callable convertibles for investment purposes: they likely use these instruments for different reasons.


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