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Advertising Signals: Marketing Strategy and/or Game Theory?

Source: www.econ.au.dk
Topic: Marketing Strategy

Sort Desciption: Marketing Strategy. and/or Game Theory? Per Baltzer Overgaard. School of Economics and Management. University of Aarhus. Slides available at: ...

Content Inside: Advertising Signals: Marketing Strategy and/or Game Theory? Per Baltzer Overgaard School of Economics and Management University of Aarhus Slides available at: www.econ.au.dk/vip htm/povergaard/pbohome/pbohome.html November 21 2003 1 1. INTRODUCTION AND OUTLINE 1. Introduction and Outline 1.1. Research interests 1. Mechanism and market design 1.a Online trading institutions (w. R. Kirkegaard) - eBay Yahoo! Covisint Priceline etc. 1.b Procurement (Reverse auctions) - REMA1000 Novozymes 2. Antitrust and regulation (w. H.P. Mllgaard) - Regulation of firm communication 2 1. INTRODUCTION AND OUTLINE 3. Information management and rent extraction in distribution channels (w. S. Albk) - Contract proposal games and design of channel struc- ture 4. Signalling and marketing 4.a Experience goods and multi-sender signalling (w. M.N. Hertzendorf) 4.b Introductory advertising (w. R. Orzach and Y. Tauman and w. K. Bagwell) 3 1. INTRODUCTION AND OUTLINE Today we shall focus on 4.b Introductory advertising Based largely upon Ram Orzach Per Baltzer Overgaard and Yair Tau- man Modest Advertising Signals Strength RAND 2002 and Kyle Bagwell and Per Baltzer Overgaard Look How Little Im Advertising in progress 2003 4 1. INTRODUCTION AND OUTLINE 1.2. Outline (1) Introduction (2) Marketing in economics Advertising (3) Types of goods and types of advertising (4) Quality signaling - The hypothesis (5) Modelling examples (6) Empirical testing (7) Related issues in business and management (8) Wrap 5 2. MARKETING IN ECONOMICS 2. Marketing in Economics Marketing in Marketing? Product Placement Price Promotion Marketing in Economics? Price and Promotion (= Advertising) Lets take this simple view Firms strategy s = (pA) R 2 + p price (observable) A advertising expenditures (observable) 6 3. GOODS AND ADVERTISING 3. Goods and Advertising Bagwells Survey paper (forthcoming Vol. 3 of Hand- book of IO) Nelson (several papers) 3.1. Types of goods Se ...

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