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| Author: | Soberman, D.A. |
| Title: | Marketing agencies, media experts and sales agents: Helping competitive firms improve the effectiveness of marketing |
| Journal: | International Journal of Research in Marketing
2009 : MAR, VOL. 26:1, p. 21-33 |
| Index terms: | models marketing efficiency selling service strategy companies customers |
| Freeterms: | heterogeneity media impact |
| Language: | eng |
| Abstract: | For marketers, it is a major challenge how to spend a marketing (henceforth as: m-g.) budget in a way of maximizing the impact on a target market. Numerous organizations, e.g. m-g. agencies, media experts or sales agents promise to deliver more impact for the money allocated to m-g. This study aims to understand the optimal strategy for m-g. agencies (etc.) to use to sell their services. Especially, it is analyzed how these services should be priced and whether a seller gains by selling these services exclusively. The model includes a m-g. services seller and two symmetric firms competing in a differentiated market. A downstream firm purchasing the services reaches a higher fraction of the potential market because of the efficiency brought by the services. It is shown among others that the optimal services selling strategy is a function of three factors: a. the degree of differentiation btw. firms, b. the fraction of the target reached by firms, and c. the increase in "reach" provided by the seller's services. |
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