MARKETING MIX POLICIES IN FMCG CASE-STUDY: THE ADVERTISING STRATEGY

ANA MARIA BOBEIC

Abstract This paper explores the relationships between selected marketing mix elements in the area of FMCG. It discusses the nature and sometimes negative consequences of the dominating marketing paradigm of toda ! marketing mix management! and furthermore discusses how modern research into! for example in the case of FMCG Companies! the marketing policies as well as customer relationship tactics shows that another approach to marketing is required. It proposes a conceptual framework in which marketing elements are related to the dimensions of brand equit and brand awareness. It also presents a case stud deriving from advertising strategies of FMCG Companies showing that the change in advertising spending is related to changes in market share! changes in product plans and changes in the number of competitors modified b the number of customers! their concentration and the si"e of the advertising budget. Keywords: marketing mix! marketing theor ! FMCG! advertising

! I"tr#$%ct&#"
This paper is a starting point in the research project I am currently involved in, at the Doctoral School of the Academy of Economic Studies, searching on Marketing Mix Strategies This paper is a !esearch Analysis made on Marketing Mix "olicies updated to the #$%st &entury Marketing !esearch It de'ates on the Advertising and "romotional importance of the advertising campaigns in the Marketing Mix policy, concerning &onsumer, !etail and (ast Moving &onsumer )oods &ompanies It emphasi*es the paradigm of +" and marketing Mix and it also proposes a ne, conceptual frame,ork regarding the marketing mix strategies The concepts presented in this paper are la'eled as a -vision driven approach. for today%s management The results presented in the paper sho, that high advertising spending, high price, good store image, and high distri'ution intensity are related to high 'rand e/uity This makes an important point out of the fact that corporate 'randing and a,areness are t,o key factors in the right implementation of Marketing Mix Strategies The &ase0Study presented in the (inal part is made on Slovakia%s (M&) market 'ased on similarities ,ith the !omanian one The !esearch "aper is important 'ecause it clears out the previous analysis made on fast moving consumer goods market, regarding the marketing mix strategies and results, that companies do not ,ant to 'e exposed to the general pu'lic Also, the paper is a starting point for a future analysis on the !omanian (M&) Market regarding the Advertising Efficiency and "romotional Strategies The existent speciali*ed literature on Marketing Mix Strategy is long and consistent, 'ut fe,er studies have 'een made regarding (M&) policy in general and none regarding the !omanian Market The literature presented in this paper is consistent and it may 'e consulted in the !eference part of the !esearch "aper

"h D candidate in Marketing, Academy of Economic Studies, 1ucharest 2email3 a4'o'eica5yahoo com6

1306

Challenges of the Knowledge Society. Economy

2. Marketing mix elements in FMCG Few topics of the commercial theory have so intensively inspired as well as divided the marketing academia as the 4Ps Marketing Mix framework, the Rosetta stone of marketing education according to Lauterborn (1 !"# $he %i& has its origins in the '!(s) *eil +orden (1 '," identified twelve controllable marketing elements that, properly managed, would result to a profitable business operation# -erome %c.arthy (1 '," reduced +orden(s factors to a simple fourelement framework: Product, Price, Promotion and Place# /ractitioners and academics alike promptly embraced the Mix paradigm that soon became the prevalent and indispensable element of marketing theory and operational marketing management# $he ma0ority of marketing practitioners consider the %i& as the toolkit of transaction marketing and archetype for operational marketing planning (1r2nroos 1 ,"# 3hile empirical evidence on the e&act role and contribution of the %i& to the success of commercial organi4ations is very limited, several studies confirm that the ,/s %i& is indeed the trusted conceptual platform of practitioners dealing with tactical5operational marketing issues (6riram and 6apien4a 1 17 Romano and Ratnatunga 1 87 .oviello et al# 9!!!"# 1 $he wide acceptance of the %i& among field marketers is the result of their profound e&posure to this concept during college years, since most introductory marketing manuals embrace it as the heart of their structure (.owell 1 :," and identify the ,/s as the controllable parameters likely to influence the consumer buying process and decisions (;otler 9!!<"# =n additional strong asset of the mi& is the fact that it is a concept easy to memori4e and apply# >n the words of ?avid -obber (9!!1") $he strength of the ,/s approach is that it represents a memorable and practical framework for marketing decision@making and has proved useful for case study analysis in business schools for many years# An0oying large@scale endorsement, it is hardly surprising that the ,/s became even synonymous to the very term marketing, as this was formulated by the =merican %arketing =ssociation (+ennet 1 8"# *e&t to its significance as a marketing toolkit, the %arketing %i& has played also an important role in the evolution of the marketing management science as a fundamental concept of the commercial philosophy (RafiB and =hmed 1 8", with theoretical foundations in the optimi4ation theory (;otler 1 'C7 3ebster 1 9"# $he theoretic endorsement of the %i& in its early days was underlined by the sympathy of many academics to the idea that the chances for successful marketing activities would increase if the decisions (and resource allocation" on the ,/ activities were optimi4ed7 P ilip !otler elucidated in "#$% how mathematical programming provides an alternative framework for finding the optimal marketing mi& tool that allows the optimal allocation of the marketing effort<# & e t eoretical 'alue of t e Mix is also underlined by the widely held view that the framework constitutes one of the pillars of the influential %anagerial 6chool of %arketing along with the concepts of %arketing %yopia, %arket 6egmentation, /roduct, /ositioning and %arketing .oncept (;otler 1 'C7 6heth et al# 1 ::"# (merican Marketing (ssociation, in its most recent definition, states that marketing is the process of planning and e&ecuting the conception, pricing, promotion and distribution of ideas, goods and services to create e&change and satisfy individual and organi4ational ob0ectives

1 .hristian 1r2nroos, From %arketing %i& to Relationship %arketing) $owards a /aradigm 6hift in %arketing, %anagement ?ecision, Dol# <9 *o# 9, 1 ,, pp# ,@9!

1307
Figure 1: The 4P-7P of Marketing

#dapted from$ %almer &'(()* Corporate branding Among the changes that businesses make as they move toward globalization is a shift in marketing emphasis from product brands to corporate branding (e.g. Aaker, 1996 Aaker and !oachimsthaler, "### $almer, 199%, "##1a de &hernatony, 1999 'owling, "##1, 199( )arris and de &hernatony, "##1 )atch and *chultz, "##1, +nd, 199, -apferer, 199" -eller, "###a, b -no. et al., "### /lins, "### *chmitt and *imonsen, 199,0". 1his is usually ascribed to the difficulties of maintaining credible product differentiation in the face of imitation and homogenization of products and services, and the fragmentation of traditional market segments that occurs as customers become more sophisticated and markets more comple.. *upport for the shift to corporate branding often comes from within marketing. 2or e.ample, some marketing researchers have claimed that a strong corporate brand has significant impact in creating positive consume perceptions of e.isting products and new product e.tensions (e.g. $rown and 'acin, 199, +nd, 199,0. /thers have addressed the special processes of creating corporate brands in the service area, emphasizing the differences between ser ices and fast-mo ing consumer goods as foundations for corporate branding processes (3c'onald et al., "##10. +n either case, corporate branding brings to marketing the ability to use the vision and culture of the company e.plicitly as part of its uni4ue selling proposition (Ackerman, 1995 $almer, 199%, "##1a de &hernatony, 1999, "##10 or as suggested by -no. et al. ("###0 and -no. and 3aklan (19950, as part of its uni4ue organizational value proposition.

" 3ary !o )atch, 3a6ken *chultz, $ringing the corporation into corporate branding, 7uropean !ournal of 3arketing, 8ol. (, 9o. ,:5, "##(, pp. 1#;1<1#6;

1308

Challenges of the Knowledge Society. Economy

Parallel to this shift in the marketing area, scholars in corporate identity are moving in the direction of what Balmer and Soenen (1999) labeled a vision driven approach to management. The vision approach expands the concept of corporate identity into a m ch more comprehensive mix of mind, soul and voice. !n their review of this new approach, the a thors show how identity management has "een transformed from a dominating concern with vis al manifestations into strategic change management (see also Balmer, #$$1")% Similarly, de &hernatony (#$$1) arg ed for the importance of strategic vision to identity and "randing, as a means to integrated "rand " ilding% 'merican corporations collectively spend h ndreds of "illions of dollars on advertising and promotion, an amo nt that exceeds the gross domestic prod ct of several nations s ch as Singapore, Sweden and Swit(erland% )ven individ al companies, for example, Procter and Gamble, spend several "illion dollars on marketing activities% &onse* ently, the determination of the marketing " dget and its allocation to several marketing activities + referred to as planning the marketing mix,+ is of paramo nt importance% Figure 2: The arketing ix

#dapted from$ +otler! #ng! ,eong and Tan &-...* !. arketing mix management " a ne# paradigm toda$ The marketing mix management paradigm has dominated marketing tho ght, research and practice since it was introd ced almost %& $ears ago. Today, this paradigm is "eginning to lose its position% -ew approaches have "een emerging in marketing research% The globali'ation o( business and the evolving recognition of the importance of c stomer retention and market economies and of customer relationship economics, among other trends, reinforce the change in mainstream marketing% .elationship " ilding and management, or what has "een la"eled relationship marketing, is one leading new approach to marketing which event ally has entered the marketing literat re% ' paradigm shift is clearly nder way% !n services marketing, especially in ) rope and ' stralia " t to some extent also in -orth 'merica, and in ind strial marketing, especially in ) rope, this paradigm shift has already taken place% Books p "lished on services marketing and on ind strial marketing as well as ma/or research reports p "lished are "ased on the relationship marketing paradigm% ' ma/or shift in the perception of the f ndamentals of marketing is taking place% The shift is so dramatic that it can, no do "t, "e descri"ed as a paradigm shift%

1309
Marketing researchers have been passionately convinced about the paradigmatic nature of marketing mix management and the Four P model. To challenge marketing mix management as the basic foundation for all marketing thinking has been as heretic as it was for Copernicus to proclaim that the earth moved. The Marketing Strategy Continuum The major problem and also a negative consequence with the marketing mix and its Four Ps has been their position as the major and in many situations as the only acceptable marketing paradigm. Relationship marketing must not become such a straitjacket. !owever developing enduring customer relationships and achieving exchanges in such relationships through a relationship marketing approach is not only another addendum to marketing mix management. "ather it is a different approach as compared to achieving exchanges in isolated transactions through the use of the Four Ps of the marketing mix. #s "eichheld observes $building a highly loyal customer base cannot be done as an add%on. &t must be integral to a company's basic business strategy(). !ence it should be useful to think about possible marketing approaches or strategies along a marketing strategy continuum. Relationship marketing is placed at one end of the continuum. !ere the general focus is on building relationships with customers *and other parties as well although only customers are discussed in this context+. At the other end of the continuum is transaction marketing where the focus of marketing is on one transaction at a time. Thus marketing revolves around creating single transactions or exchanges at a time and not around building long%term relationships. The Paradigm Shift in Marketing From a management point of view the Four Ps may have been helpful at one time at least for marketers of consumer packaged goods. The use of various means of competition became more organi,ed. !owever the Four Ps was never applicable to all markets and to all types of marketing situations. The development of alternative marketing theories demonstrates that even from a management perspective the marketing mix and its Four Ps became a problem. -n the other hand marketing is more and more developing in a direction where the toolbox thinking of the marketing mix fits less well. &n industrial marketing services marketing managing distribution channels and even consumer packaged goods marketing itself a shift is clearly taking place from marketing to anonymous masses of customer to developing and managing relationships with more or less well%known or at least somehow identified customers. Marketing mi! management with its four Ps is reaching the end of the road as a universal marketing approach. .ome authors now use the "P Model *see #igure $%& !owever even if marketing mix management is dying as the dominating marketing paradigm and the Four P model needs to be replaced this does not mean that the Ps themselves and other concepts of the managerial approach such as market segmentation and indeed the marketing concept would be less valuable than before. "elationships do not function by themselves. Most certainly relationship marketing will develop into such a new approach to managing marketing problems to organi,ing the firm for marketing and to other areas as well. '& Review of a Marketing Management Paradigm( The )ackgrounds of the *ebate /evelopments on the commercial landscape and changes in consumer and organi,ational attitudes over the last four decades have fre0uently prompted marketing thinkers to explore new theoretical approaches addressing specific marketing problems and expanding the scope of the marketing management theory. The most important landmarks of the evolution of the marketing management theory include+,the broadening of the marketing concept during the "-.s the emphasis on the e!change transaction in the /-.s the development of the Relationship
) "eichheld F. and .asser 1. *2334+ $5ero /efections6 7uality Comes to .ervices( /arvard 0usiness 1eview 8ol. 0/ 9 pp. 249%222 .

1310

Challenges of the Knowledge Society. Economy

Marketing and Total Quality Management in the 90s (Yudelson 1999) and last but not least the emergence of Information and Communication Technologies as major actors of the 2 st century Marketing. At the same period the consumer behavior has also evolved; one of the noticeable changes has been the gradual evolution from the mass consumer markets of the 60 s (!olf 199") to#ards increasingl$ global% segmented% customi&ed or even personali&ed markets of toda$ ('otler et al. (001) #here innovation% customi&ation% relationships building and net#orking have become issues of vital significance. )he developments on the ground have prompted the development of ne# theoretical approaches dealing #ith specific rather than general marketing problems and situations. *n the course of these developments the !"s Marketing Mi# frame$ork has been one of the sub+ects that fre,uentl$ became the source of controvers$ and scientific debate (-i.on and /lois 19"0; 1afi, and Ahmed 199(). 2urprisingl$ in a sense% this scientific debate has hardl$ been echoed in the practitioners ,uarters. 3nlike academics% practicing marketers have been reluctant to ,uestion% let alone dismiss the trusted paradigm (2riram and 2apien&a 1991; 4r5nroos 1996)% presumabl$ anticipating that the academic debate #ill $ield some ne#% apparentl$ better marketing methodologies and usable concepts. 2ome of the criticism to the address of the 67s frame#ork has its roots in the discrepancy between the philosophy behind the Marketing Mix on one hand and the fundamentals of the Management School of Marketing on the other. )he 8anagement 2chool that embraced the 8i. as one of its 9most important conceptual breakthroughs: (2heth et al. 19"") has given the 8i.% as alread$ mentioned% similar status #ith the Marketing Conce%t and the Market &rientation %rinci%les ('otler 19"6). Yet the ver$ nature of the four7 s as manageable i.e. controllable factors combined #ith the e.plicit lack of market input in the model ('otler (000) is in sharp contrast #ith the 8arketing ;oncept and 8arket <rientation principles impl$ing that marketing activities should be based on identification of customer needs and #ants% t$pical e.ternal and therefore uncontrollable factors. )his parado. has been highlighted b$ researchers like -i.on and /lois (19"0) and 4r5nroos (1996). )he debate has been focused on developments of consumer and organi&ational behavior% the increasing comple.it$ of the environment and the gro#ing importance of technolog$ as marketing enabler. ('aufman 199=; /ro#n and >isenhardt 199"; /einhocker and 'aplan (00(). ' (isci%linary Classification of the Marketing Mi# Criticism <ne of the criteria for classif$ing the attitudes of researchers to#ards the 67s 8arketing 8i. frame#ork is the disciplinar$ origin of the arguments% but such a classification can raise al#a$s ,uestions; the apparent difficult$ of this approach is to e.actl$ demarcate the different marketing domains% something that underlines the comple.it$ of the marketing environment toda$. A 9,ualitative: classification offers ho#ever a good insight to research attitudes in anal$&ing and modeling a changing% e.panding and sometimes turbulent marketing environment. <n the basis of the disciplinar$ approach the theoretical status ,uo of the 8arketing 8i. #ill be revie#ed based on publications referring to fi)e traditional and one emerging Marketing Management sub*disci%lines+ Consumer Marketing, -elationshi% Marketing, .er)ices marketing, -etail Marketing, Industrial Marketing and /*Commerce0 *t speaks for itself that further research in other marketing sub?disciplines is needed for dra#ing up final conclusions and comprehensive +udgment on the ,uestion of the value of the 67s. Consumers -elationshi%s tactics -uring the last fe# $ears there has been a gro#ing interest in stud$ing the economics of long? lasting customer relationships. @eskett introduced the concept of market economies% b$ #hich he means achieving results b$ understanding the customers instead of b$ concentrating on developing scale economies. 1ong*term relationshi%s #here both parties over time learn ho# to best interact #ith each other lead to decreasing relationship costs for the customer as #ell as for the supplier or

1311
service provider. The relationship cost theory which is based on literature on, for example, qualit costs and transaction costs have been suggested by Grnroos. A mutually satisfactory relationship makes it possible for customers to avoid significant transaction costs involved in shifting supplier or service provider and for suppliers to avoid suffering unnecessary qualit costs. The Marketing Mix and the Consumers Marketing Significant cultural, social, demographic, political and economic influences during the last decades of the 20th century, combined with rapid technological advances have radically transformed the consumer s needs, nature and behavior. The new consumer has been described as existential, less responsive to traditional marketing stimuli and less sensitive to brands and marketing cues while the influence of family or other types of reference The !arketing !ix "evisited groups on the new consumer s behavior is changing or diminishing #$hristopher %&'&(. !ore researchers share the view that the modern consumer is different) demanding, individualistic, involved, independent, better informed and more critical #$apon and *ulbert +,,,- .ewis and /ridger +,,,(. A factor underlining the change is the increasing consumer power and sophistication due to wide availability of affordable personal computing power and easy access to online global commercial firms, networks, databases, communities or marketplaces. These developments have intensified the pressure on marketers to switch from mass marketing approaches towards methods allowing personali"ation! interaction and sincere! direct dialog with the customer. Such approaches allow marketers not only to improve communications with their target groups but also to identify the constantly changing and evolving customer needs, respond 0uickly to competitive movements and predict market trends early and accurately. Table 1: e!ie" of Consumer Marketing Theory #iterature
$uthor%s& 1otler %&'2 $rguments 3xternal and uncontrollable environmental factors are very important elements of the marketing strategy 4rograms 'ropositions The !arketing !ix should include) $ustomers 3nvironmental variables $ompetitive variables Two additional 4s to the 2 traditional ones) 4olitical power 4ublic opinion formulation Three $s define and shape the marketing strategy) $ustomers $ompetition $orporation 7our $s expressing the external orientation of a !arketing !ix) $ustomers $ompetition $apabilities $ompany The !<=!A4 techni0ue allows the exact mapping of marketing mix elements and variables, allowing the consistency between strategy and tactics.

5hmae %&'+

6o strategic elements are to be found in the marketing mix. The marketing strategy is defined by three factors

"obins %&&%

The 24s !arketing !ix is too much internally oriented

8ignalli and 9avies %&&2

!arketing planning will contribute to the organi:ational success if it is closely related to strategy. The !arketing !ix is limited to internal and non;

1312
Doyle 1994

Challenges of the Knowledge Society. Economy

$ennett 199%

strategic issues While the 4Ps dominate the marketing Management activities most marketing practitioners would add two more elements in this mix in order to position their products and achieve the marketing objectives &ocused on internal variables there!ore incomplete basis !or marketing' (ustomers are disposed to buy products !rom the opposite direction to that suggested by the Marketing Mix he 4Ps are not the proper basis o! the +1st century marketing' he Marketing developments o! the last 4, years re-uire a new !lexible Plat!orm while the simplicity o! the old model remains an attractive !acto Marketplaces today are customer oriented' he 4Ps have less relevance today1 they made sense the time they were invented

wo more !actors must be added to the 4P mix" #ervices #ta!!

*udelson 1999

&ive )s are the criteria o! customer disposition" )alue )iability )ariety )olume )irtue 4 new Ps based on exchange activities" Product ./ Per!ormance Price./ Penalty Place./ Process Promotion./ Perceptions 2nd.consumer controls the market 3etwork systems should de!ine the orientation o! a new Marketing 4 new Marketing mix must be based on the Marketing riad Marketer1 2mployee and (ustomer

#chult0 +,,1

2ource$ 3. Constantinides! The Marketing Mix 1evisited$ Towards the '-st Centur Marketing &'((4*

#everal shortcomings o! the Marketing Mix have led the majority o! the authors reviewed to suggest that the ('s frame"ork should not be considered as the !oundation o! (onsumer Marketing management any longer' 5n the reviewed papers and books the criticism is !ocused on three main areas" . )nternal *rientation: a !re-uent objection underlying the Mix6s explicit lack o! customer orientation' 7otler 81994:1 ;obins 81991:1 )ignali and Davies 81994: $ennett 8199%: and #chult0 8+,,1: are one way or another identi!ying this as the prime limitation o! the Mix' . #ack of consumer interacti!ity" Doyle 81994: and *udelson 81999: argue that the Mix ignores the evolving nature o! the consumer who demands not only higher value but also more control on the communication and transaction process' 4llowing better interaction reduces the customer de!ection rates and increases customer trust' . #ack of strategic elements: <hmae 8199+: )ignali and Davies 81994: argue that lack o! strategic content is a major de!iciency o! the !ramework1 making it un!it as planning instrument in an environment where external and uncontrollable !actors de!ine the !irm6s strategic opportunities and threats' he majority o! the reviewed authors propose alternative !rameworks while those willing to accept a role !or the 4Ps o!ten propose modi!ied versions1 with new elements added to the traditional parameters'

1313
Marketing Mix and the Retail Marketing As recently as two decades ago most manufacturers of consumer products considered communication with the final customer as one of their essential marketing tasks. Being the dominant market party, producers would employ mass marketing campaigns aiming at increasing brand recognition, product awareness and mind share, as basic ingredients for stimulating product demand. Retailers and other intermediaries were considered as somewhat secondary actors in the marketing process, their responsibility confined in the functions of stocking and re-selling products (McCarthy 1 !"#.$ Consolidation of the retailing sector, globalisation and pri%ate branding has transformed the retailing landscape. A significant power migration along the supply chain ga%e retailers gradually more control o%er the marketing processes and at the same time e&posed them to increasing industry competition. 'rying to build up strong market positions and competiti%e ad%antages, retailers were forced to adopt more professional and proacti%e commercial approaches, becoming gradually real marketers, rather than distributors and in-store merchandisers (Mulhern 1 !#. (upply chain management, efficiency, customer retention and customer lifetime %alue ()eichheld and (asser 1 *+ )osenberg and C,epiel 1 -# form the cornerstone of many retailers. marketing strategies today. 'he consistent effort to build long-term relationships with the customer shifted the focus from the passi%e application of the $/s to 0e&ecution1 where retail formats! personnel! service and presentation are becoming the critical elements of retail marketing. 5 'he retail marketing theory embraces elements of both services marketing and relationship marketing, previously discussed. 2. Constantinides arguments against using the $/s as basis for ser%ices and relationship marketing can be easily e&panded to retail marketing. 3et retail marketing includes some additional, distincti%e aspects that the Marketing Mi& also fails to address4 ph sical evidence! shopping experience! atmosphere (Mulhern 1 !+ 5otler -**6# and personali"ed rather than mass contacts (7ang et al. -***#. 'he idea is that the $/s do not present an ade8uate platform for planning of marketing acti%ities in this domain. Most researchers suggest replacing the mi& with new concepts or adding new elements to it. /ersonnel, /resentation and )etail 9ormat are factors contributing to uni8ue customer e&perience as basis of differentiation and retention. 5. Marketing mix and Brand equity 'here are many relationships between selected marketing mi& elements and the creation of brand e8uity. 'here is a conceptual framework in which marketing elements are related to the dimensions of brand e8uity, that is, perceived quality, brand loyalty, and brand associations combined with brand awareness. 'hese dimensions are then related to brand e8uity. 'he practice results show now that fre8uent price promotions, such as price deals, are related to low brand e8uity, whereas high advertising spending, high price, good store image, and high distribution intensity are related to high brand equity. Brand equity is the incremental utility or %alue added to a product by its brand name, such as Coke, 5odak, :e%i.s, and ;ike (9ar8uhar, <an, and =>iri 1 1+ 5amakura and )ussell 1 6+ /ark and (rini%asan 1 $+ )angaswamy, Burke, and ?li%a 1 6#.@ Accordingly, research has suggested that brand e8uity can be estimated by subtracting the utility of physical attributes of the product from
McCarthy, 2.A. (1 !"#, 0asic Marketing! a Managerial #pproach, (i&th 2dition, <omewood, =ll.4 )ichard B. =rwin, =nc. C 2. Constantinides, 'he Marketing Mi& )e%isited4 'owards the -1st Century Marketing, 5ournal of Marketing Management -**@, --, $*!-$6" @ 7right, )obert 7., :undstrom, 7illiam A., Bo go%ernment subsided programs effect percei%ed product 8uality and brand e8uityD Aournal of Academy of Business and 2conomics, Bate4 9eb, -**! (ource Eolume4 ! (ource =ssue4 $

1314

Challenges of the Knowledge Society. Economy

the total utility of a brand. As a substantial asset to the company, brand equity increases cash flow to the business (Simon and Sullivan 1993). rom a behavioral viewpoint, brand equity is critically important to ma!e points of differentiation that lead to competitive advanta"es based on non price competition (Aa!er 1991).

igure !" # $onceptual ramework of Brand %quity

2ource$ 0oonghee 6oo! 7aveen 8onthu and 2ungho ,ee &'(((* #y stren"thenin" the dimensions of brand equity, we can "enerate brand equity. $nderstandin" the brand equity phenomenon properly requires tappin" the full scope of brand equity, includin" awareness, perceived quality, loyalty, and associations &Aa!er 1991). %eithaml (19&&) defines perceived quality as 'the consumer(s )sub*ective+ *ud"ment about a product(s overall e,cellence or superiority-. .ersonal product e,periences, unique needs, and consumption situations may influence the consumer(s sub*ective *ud"ment of quality. /i"h perceived quality means that, throu"h the lon"0term e,perience related to the brand, consumers reco"ni1e the differentiation and superiority of the brand. %eithaml identifies perceived quality as a component of brand value2 therefore, hi"h perceived quality would drive a consumer to choose the brand rather than other competin" brands. 3herefore, to the de"ree that brand quality is perceived by consumers, brand equity will increase. 4liver (1995) defines brand loyalty as 'a deeply held commitment to rebuy or repatroni1e a preferred product or service consistently in the future, despite situational influences and mar!etin" efforts havin" the potential to cause switchin" behavior-. 6oyal consumers( show more favorable responses to a brand than non loyal or switchin" consumers do. #rand loyalty ma!es consumers purchase a brand routinely and resist switchin" to another brand. /ence, to the e,tent that consumers are loyal to the brand, brand equity will increase. Brand awareness with stron" associations forms a specific brand ima"e. Aa!er (1991) defines brand associations as 'anythin" lin!ed in memory to a brand- and brand ima"e as 'a set of )brand+ associations, usually in some meanin"ful way-. #rand associations are complicated and connected to one another, and consist of multiple ideas, episodes, instances, and facts that establish a solid networ! of brand !nowled"e. 3he associations are stron"er when they are based on many e,periences or e,posures to communications, rather than a few (Aa!er 1991). #rand associations, which result in hi"h brand awareness, are positively related to brand equity because they can be a si"nal of quality and commitment and they help a buyer consider the brand at the point of purchase, which leads to a favorable behavior for the brand.

131
Marketing Mix %lements and Brand %quity 7e investi"ate consumers( perceptions of five selected strategic marketing elements8 price, store image, distribution intensity, advertising spending, and fre uency of price promotions. 3he selected factors do not embrace all types of mar!etin" efforts but are representative enou"h to demonstrate the relationships between mar!etin" efforts and the formation of brand equity. 'rice. 9onsumers use price as an important e,trinsic cue and indicator of product quality or benefits. /i"h priced brands are often perceived to be of hi"her quality and less vulnerable to competitive price cuts than low priced brands (#lattber" and 7inniews!i 19&92 :odds, ;onroe, and <rewal 19912 =ama!ura and >ussell 19932 ;il"rom and >oberts 19&?2 4lson 1955). Therefore! price is positivel related to perceived qualit . >ao and ;onroe (19&9)5 show that a positive relationship between price and perceived quality has been supported throu"h previous research. #y increasin" perceived quality, price is related positively to brand equity. 3here is not any si"nificant relationship between price and the other brand equity dimensions, brand loyalty and brand associations. Althou"h price implies hi"h quality, it does not create loyalty to the brand per se. @either loyal nor non loyal consumers use price as an evaluative criterion of the product, and they are not influenced by price considerations (/elsen and Schmittlein 199A2 ;eer 199B). #rand0loyal consumers are willin" to pay the full price for their favorite brand because they are less price sensitive than brand0non loyal consumers are. 3hus, chan"in" the price level alone does not affect brand loyalty. Also there is no directional relationship between price and brand associations, because both low and hi"h prices can be equally stron"ly lin!ed to the brand in memory for the benefits that each brin"s to consumers. A low0priced product would "ive transaction utility (i.e., payin" less than the consumer(s internal reference price), whereas a hi"h0priced product would "ive hi"h0quality ima"e or acquisition utility, leadin" to reduced consumer ris!. Cither a low0 or hi"h0price strate"y would help consumers be equally aware of the product. (tore image. 3he importance of channel desi"n and mana"ement as a mar!etin" tool of increasin" brand equity is "rowin" (see Srivastava and Shoc!er 1991). Dn a distribution channel, retailers encounter a firm(s ultimate consumers. Selectin" and mana"in" retailers is therefore a firm(s ma*or mar!etin" tas! in satisfyin" consumers( needs. Dn particular, distributin" throu"h "ood ima"e stores si"nals that a brand is of "ood quality. :odds et al. (1991) find si"nificant positive effects of store ima"e on perceived quality. 3he store name is a vital e,trinsic cue to perceived quality. 3he quality of a "iven brand is perceived differently dependin" on which retailer offers it. 9ustomer traffic will be "reater in a store with a "ood ima"e than in one with a bad ima"e. <ood0ima"e stores attract more attention, contacts, and visits from potential customers. Dn addition, such stores provide "reater consumer satisfaction and stimulate active and positive word0of0mouth communications amon" consumers (%eithaml 19&&). 3herefore, distributin" a brand throu"h an outlet with a "ood ima"e will create more positive brand associations than distributin" throu"h an outlet with a bad ima"e. Store ima"e appears to have no relationship with loyalty to a specific brand. 9onsumers perceive "ood store ima"e when their self0concept is con"ruent with store ima"e (Sir"y and Samli 19&B). 3hus, if the store ima"e does not match the perceived ima"e of the product, consumers would not be impressed enou"h to show loyalty to the product. Dn other words, only when there is consistency between product and store ima"es will consumers be loyal to the product that is available in the store. )istribution intensity. :istribution is intensive when products are placed in a lar"e number of stores to cover the mar!et. 3o enhance a product(s ima"e and "et substantial retailer support, firms

5 #oon"hee Eoo, @aveen :onthu and Sun"ho 6ee, An C,amination of Selected ;ar!etin" ;i, Clements and #rand Cquity, 5ournal of the #cadem of Marketing 2cience FGGG2 F&2 19B.

1316

Challenges of the Knowledge Society. Economy

tend to distribute e,clusively or selectively rather than intensively. Dt has also been ar"ued that certain types of distribution fit certain types of products. 9onsumers will be more satisfied, however, when a product is available in a "reater number of stores because they will be offered the product where and when they want it ( erris, 4liver, and de =luyver 19&9). Dntensive distribution reduces the time consumers must spend searchin" the stores and travelin" to and from the stores, provides convenience in purchasin", and ma!es it easier to "et services related to the product. As distribution intensity increases, therefore, consumers have more time and place utility and perceive more value for the product. 3he increased value results mostly from the reduction of the sacrifices the consumer must ma!e to acquire the product. Such increased value leads to "reater consumer satisfaction, perceived quality, and brand loyalty and consequently, "reater brand equity. Accordin"ly, positive brand associations will increase alon" with a consumer(s satisfaction with the product. #dvertising spending. 4verwhelmin"ly, advertising researchers found advertising is successful in generating brand equity, whereas sales promotion is unsuccessful (#ouldin", 6ee, and Staelin 199A2 9hay and 3ellis 19912 Hohnson 19&A2 6indsay 19&92 ;a,well 19&9)&. Simon and Sullivan (1993)9 find a positive effect of advertising spending on brand equity. 9obb07al"ren, #eal, and :onthu (199B)1G find that the dollar amount spent on advertisin" has positive effects on brand equity and its dimensions. Advertisin" is an important e,trinsic cue si"nalin" product quality (;il"rom and >oberts 19&?)11. /eavy advertisin" spendin" shows that the firm is investin" in the brand, which implies superior quality (=irmani and 7ri"ht 19&9)1F. Dn addition, Archibald, /aulman, and ;oody (19&3)13 find that advertisin" spendin" levels are "ood indicators of not only hi"h quality but also "ood buys. Aa!er and Hacobson (199A) also find a positive Eoo et al relationship between advertisin" and perceived quality. /ence, advertisin" spendin" is positively related to perceived quality, which leads to hi"her brand equity. Advertisin" plays a pivotal role in increasin" brand awareness as well as creatin" stron" brand associations. Repetitive advertising schedules increase the probability that a brand will be included in the consideration set, which simplifies the consumer(s brand choice, ma!in" it a habit to choose the brand (/auser and 7ernerfeldt 199G)1A. *hus, a greater amount of advertising is related positively to brand awareness and associations, which leads to greater brand equity. Dn addition, accordin" to an e,tended hierarchy of effects model, advertisin" is positively related to brand loyalty because it reinforces brand0related associations and attitudes toward the brand. 'romotions (e."., short0term price reductions such as special sales, media0distributed coupons, pac!a"e coupons, cents0off deals, rebates, and refunds), are believed to erode brand equity
#oon"hee Eoo, @aveen :onthu and Sun"ho 6ee, An C,amination of Selected ;ar!etin" ;i, Clements and #rand Cquity, 5ournal of the #cadem of Marketing 2cience FGGG2 F&2 19B 9 Simon, 9arol H. and ;ary7. Sullivan. 1993. '3he ;easurement and :eterminants of #rand Cquity8 A inancial Approach.- Marketing 2cience! 9inter ':;<' 1G 9obb07al"ren, 9athy H., 9ynthia #eal, and @aveen :onthu. 199B. '#rand Cquity, #rand .references, and .urchase Dntent.- 5ournal of #dvertising FA (3)8 FB0AG. 11 ;il"rom, .aul and Hohn >oberts. 19&?. '.rice and Advertisin" Si"nals of .roduct Iuality.- 5ournal of %olitical 3conom BB (Au"ust)8 1G0FB. 1F =irmani, Amna, and .eter 7ri"ht. 19&9. ';oney 3al!s8 .erceived Advertisin" C,penditures and C,pected .roduct Iuality.- 5ournal of Consumer 1esearch 1? (:ecember)8 3AA03B3. 13 Archibald, >obert #., 9lyde A. /aulman, and 9arlisle C. ;oody, Hr. 19&3. 'Iuality, .rice, Advertisin", and .ublished Iuality >atin"s.- 5ournal of Consumer 1esearch 9 (;arch)8 3A503B?. 1A /auser, Hohn >. and #ir"er 7ernerfeldt. 199G. 'An Cvaluation 9ost ;odel of 9onsideration Sets.- 5ournal of Consumer 1esearch 1?, (;arch)8 3930AG&.
&

1317
over time despite immediate short-term financial gain. (ales promotion may not be a desirable way to build brand equity because it is easily copied and counteracted (Aaker 1991) and only enhances short-term performance by encouraging sales and momentary brand switching (Gupta 19 ). !n the long run" sales promotion may convey a low-#uality brand image. $urthermore" fre#uent price promotions may %eopardi&e brands in the long run because they cause consumer confusion based on unanticipated differences between e'pected and observed prices" which results in an image of unstable #uality. (onsumers cannot forecast correct point of- purchase prices" and forecasting errors due to the gap between e'pected and observed prices negatively affect brand choice decisions as well as perceived #uality" which leads to a decrease in brand e#uity. Also" price promotion campaigns do not last long enough to establish long-term brand associations" which can be achieved by other efforts such as advertising and sales management. )elying on sales promotion and sacrificing advertising would reduce a brand association" which leads to decreasing brand e#uity. 'rice promotions do not seem to be related to brand loyalty" although they are consistently found to enhance temporary brand switching (Gupta 19 ). *hey often fail to establish a repeat purchase pattern after an initial trial. *his is because consumers are momentarily attracted to the brand by the transaction utility that the price promotions provide" and when deals end" they lose interest in the brand. *hus" change in brand loyalty after the end of deals may not occur unless the brand is perceived to be superior to and meet consumer needs better than its competing products. +imilarly" on the basis of selfperception theory" ,odson" *ybout" and +ternthal (19- )1. find that brand switching behavior ends when it is attributable to price promotions (i.e." an e'ternal cause) rather than when it is attributable to a liking for the purchased product (i.e." an internal cause). *hus" the behavior disappears when the e'ternal cause is removed" and the loyalty level does not change. +. $ase study , *he #dvertising strategy #dvertising is an inevitable part of marketing activities in each business operating on consumer (/0/) markets. /ehavior of customers can be very strongly influenced by advertising and therefore companies should give an appropriate attention to this issue. 1Advertising is the nonpersonal communication of information" usually paid for and usually persuasive in nature" about products (goods and services) or ideas by identified sponsors through various media (Arens" 1992)12.3 1!t is the beating heart of marketing for many organi&ations. Advertising is the engine that branding e'perts fire up whenever they want to shift awareness or attitudes (+haw" 4errick" 055." p. 2-)1-6 7e can classify advertising forms into six ma-or categories" print, electronic, out.of home, direct mail, digital interactive and other (Arens" 1992" p. 9.). Advertising media include newspaper, maga/ine, direct mail, radio, television, internet, inside transit, outside transit" outdoor (8ride" $errel" 1999" p. 922). *o avoid wasting the money on any activities and to know into which e'tend the goals (including communication goals) have been fulfilled companies should control and measure them. (ontrol and measurement are very close interconnected. 1(ontrol is the process by which information or feedback is provided so as to keep all functions on track6 (+oltani et al." 055-). 4easurement is a procedure for assigning a number to an ob%ect or an event. 8erformance is a comparison between the outputs obtained and the set goals for outputs of a process. *he most common criteria for measuring of the marketing performance are increases in sales and market share (+haw" 4errick" 055. p. 09). :owever we can evaluate advertising performance from two points of view; effectiveness and efficiency. Advertising effectiveness means how successful the
1. ,odson" <oe A." Alice 4. *ybout" and /rian +ternthal. 19- . 3!mpact of ,eals and ,eal )etraction on /rand +witching.6 5ournal of Marketing! 1esearch 1. ($ebruary); -0- 1. 12 Arens" 7.$. 1992. (ontemporary Advertising. (hicago; !rwin= 4c Graw- :ill." !+/> 5-0.2-1 0.--9. 1+haw. )." 4errick ,. 055.. 4arketing 8ayback. :arlow; 8earson ?ducation" 055.. !+/> 5 0-@ 2 9-.

1318

Challenges of the Knowledge Society. Economy

advertising is in communicating the message whether people saw it, whether they liked it etc. Necessary elements of advertising effectiveness measurement include: 1 measurement instruments, 2. benchmarks, 3. a control, . money and commitment, !. a research plan, and ". time #$entley, 1%%"&1'. (ffectiveness is one of the key themes in advertising research. )dvertising effectiveness can be defined as the e*tent to which advertising generates a certain desired communication effect #$uschken, 2++,&. )dvertising can be evaluated before, during and after the campaign #-ibb, .imkin, /ride, 0errel, 1%%,, p. !+1&1%. (valuations performed before the campaign begins are called pre1tests. 2hese include: concept testing, consumer 3uries, psychological measures, portfolio tests, readability tests, dummy advertising vehicles, theater tests and on air tests. /ost1testing methods include in4uiry tests, recognition tests, recall tests, day1after recall tests, test marketing, single source tracking studies and tracking print. 5ell known managerial e*pert /eter -rucker states, that effectiveness means 6doing the things right7. To measure the marketing performance we can use also 89: #8eturn on :nvestment&, 89;: #8eturn on ;arketing :nvestment& or 89;( #8eturn on ;arketing (*penditure&. Specifically for advertising we can use ROAI (Return on Advertising Investment). 2hese measures refer to efficiency. )t the beginning of the 2+th century an )merican businessman <ohn 5anamaker claimed that 7=alf the money : spend on advertising is wasted> the trouble is, : don?t know which half.@ 2hese words represent a basic idea what efficiency in advertising means. (fficiency means 6doing the right things@. Advertising efficiency means the financial return on the advertising e*penditure. 2he efficiency of advertising could be measured dividing net profits from the campaign by the amount of the advertising costs #Aawless, 2++,&2+. ;easurement of advertising performance can be very useful for companies. 2hey find out whether the main o !ective of the campaign has een reached, they find out the return on advertising investments and get data for preparing the future campaigns. )ccording to Aawles #2++,& apart from that enterprises can learn the following from the campaign assessment as well: effects on customer knowledge, effects on customer attitudes, effects on customer intentions, effects on customer behavior, effects on our brand image, financial benefits stemming from the campaign, information on the campaign itself #likeability, interestingness, popularity, etc.&. :t?s not easy to measure for a start, but that does not mean companies should not try. Bp to now, no ody has ever invented a "##$ secure advertising test% as usually the some problems occur #see Ta le &). Ta le & ' (ro lems with control and measuring of advertising performance and reasons of failing to do post) campaign testing
(RO*+,-S with control and measurement of advertising performance )bstract character of the results Aong term effects of campaigns Combined influence of more effects at once Costs of testing Aack of information 8ealiDation problems Aack of time Aack of money Aack of information on advertising post1testing Aack of human resources

R,ASO.S of failing to do post1campaign testing

.ource: (laborated according to Aawles, 2++,

$entley, .., 1%%" ;arketing 5eek. Aondon., :..N: +1 1%2'!. -ibb, .., .imkin A., /ride 5. ;., 0errel, 9.C. 1%%,. ;arketing Concepts and .trategies. $oston: =oughton ;ifflin Company , 1%%,. :.$N +13%!1,%++! 2+ Aawless, /. 5hich 0orms of )dvertising ;ay $e ;ost (ffectiveE 2++,, available online: http:FFwww.3r.ieFmarketing1blogFwhich1forms1of1advertising1 may1be1most effectiveF, seen +'.+ .2++%
1% 1'

1319
Advertising performance of the fast moving consumer goods companies in Slovakia Fast moving consumer goods (FMCG) also known as consumer packaged goods, are products that have a quick turnover and relatively low cost. Though the absolute profit made on FMCG products is relatively small, they generally sell in large numbers and so the cumulative profit on such products can be large. !amples of FMCG generally include a wide range of frequently purchased consumer products such as toiletries! soap! cosmetics! teeth cleaning products! shaving products and detergents! as well as other non;durables such as glassware! bulbs! batteries and paper products. FMCG also include pharmaceuticals! food products and drinks"#Coulthart, $%%&'. (n our analysis we use a case study made in )lovakia in $%*%. +e used this case,study for some important reasons like, The )lovakian FMCG market is similar to the .omanian FMCG market , The type of FMCG Companies present in )lovakia, are similar with "brand/ names present into the .omanian Market in $%*% , The )upermarket 0rands in )lovakia are likely to be found also on the .omanian market0illa, 1aufland, 2idl, Carrefour , )lovakia is an e! communist country, now member of the uropean 3nion The case,study deals with the measurement of advertising activities in 2lovak fast moving consumer goods companies. The work presents results of the primary field research concerning on these issues. The main aim of the research was to find out if and to what extent fast moving consumer goods companies in 2lovak 1epublic measure results of their advertising activities! to identif the methods the know and use and to reveal the problems that companies have with evaluation of advertising effectiveness and efficienc . The research was quantitative in nature and a method of questioning with the e,mail form questionnaire has been selected. The research as !uantitative in nature. For collecting of primary data the authors used questionnaires. They distributed the questionnaires through e,mails to 45% FMCG enterprises in )lovakia. 6n e,mail questionnaire has been sent to the persons from marketing department as they are the best specialist from companies to answer the questions. They have chosen these companies so that we went to the supermarkets Tesco" #illa" $aufland" %idl and &'pernova.They were looking there among products for names of producers and suppliers of FMCG. They received back 4$ completed questionnaires. The rate of returned completed questionnaires was only 7.$8. )ome companies wrote them, that they do not fill in the questionnaire, because they assume such information as internal and too private. The authors considered that the respond rate not to be sufficient to develop general statements about all FMCG enterprises in 2lovakia! but we are sure that the can reflect certain realit . Conclusion of the stud' on the Slovakian FMCG market 97.78 of the companies do not measure their campaigns according to their effectiveness in comparison with :*.$8 companies that conduct it. More than two thirds of companies #7*.%8' assess advertising campaigns after the campaign. 0efore the campaigns only &.48 of the companies evaluate and during the campaign *$.;8 of them. This percentage is not satisfying since if they conduct the measurement before and during advertising campaigns they could reveal and avoid possible problems and mistakes before they happen. They further e!amined the ways in which companies evaluate their advertising performance. They wanted to know which of them companies know and use in their practice. (n this question there was not limited amount of possibilities, which companies could select. The best known from the methods of measurement of advertising effectiveness are consumer =uries #9%.&8 know it and 4*.48 use it'. The second best known method is Tracking print> broadcast ads! which is known by 4;.:8 companies and it is used by $*.*8 companies. The ne!t well known #49.98' and used methods #$7.*8 of respondents' are 1eadabilit tests. The <hysiological measures are known by 49, 98 companies but nobody uses them. =ther methods are not very known and used. They are known ma!imally by $7, *8 of respondents and used ma!imally by *:.&8 of respondents. There are many methods not known and not used.

1320

Challenges of the Knowledge Society. Economy

.egarding efficiency the most of the respondents #;$.$8' kno the method of (eturn on advertising investment) This method is used by :%8 of the companies which carry out the evaluation of their advertising campaigns. The method (ncrease in profit is quite a lot well known and used too. &*8 companies know it and ::.&8 of respondents use this method of measurement of advertising efficiency. 6ll companies which carry out the evaluation of advertising performance e!ecute the evaluation themselves. The reasons for it can be that small and medium si>ed enterprises do not have enough financial resources to pay outsourcing companies for such services or that they do not want to pay for such services to e!ternal companies. Control and measurement of advertising is a very important activity to ensure that the money were spent but not wasted. Advertising should *e effective and efficient. (t does not mean that efficient advertising is automatically effective or vice versa. 6nd therefore it is not enough to evaluate only effectiveness or only efficiency? both of them should be controlled and measured. From the research only +,)-. of fast moving consumer goods enterprises control and measure their advertising performance. This share is as very small and it has been suggested changing the current state. )ome companies do not have enough financial resources for control and measurement of advertising or they do not want to spend money on this activity. The companies which do not want to spend money on such issues should change their opinions. The study also suggested that 94.78 of companies in the research do not assessed their advertising because of lack of information. The ma@or conclusion of the )lovakian study was the fact that - advertising spending is related to changes in market share" changes in product plans and changes in the num*er of competitors modified *' the num*er of customers" their concentration and the si/e of the advertising *udget) 0n other ords1 Advertising makes Sales go up)

2) Conclusions
The main outcomes of this .esearch may be found in the presentation of the marketing paradigm of today Marketing Mi! )trategy and the 9<s. From a management point of view the Four <s may have been helpful at one time, at least for marketers of consumer packaged goods. The use of various means of competition became more organi>ed. Aowever, the Four <s was never applicable to all markets and to all types of marketing situations. Marketing mi! management with its four <s is reaching the end of the road as a universal marketing approach. Bewest studies have shown the importance of the ;<s analysis and of the relationship marketing at one of the pillars of a globali>ed market economy and the importance of brand awareness and analysis on the corporate market that impact strategies regarding FMCG industry. Most certainly soon the relationship marketing will develop into such a new approach to managing marketing problems, to organi>ing the firm for marketing and to other areas as well. The research results indicate that different marketing mi! elements impact also the creation of brand equity with different levels of intensity, as well as that some elements of marketing mi! can negatively affect the creation of brand equity. The case,study made on )lovakian FMCG market found similarities with the .omanian FMCG market and also showed that for the FMCG companies the 6dvertising )trategy occupies a key position in order to reach brand effectiveness and awareness and increase general sales. 6lso, related to the way of analy>ing the )lovakian market (nquiry tests can be made which are really ob@ective and not complicated method of measurement of advertising performance.

1321
From methods of measurement of efficiency for companies is recommended the method Return on advertising investments which is not difficult and also not very time-consuming. With change of attitude of companies to control and measurement of advertising we can expect increase of economic development of the companies. Also, this research paper can be useful background for a future market analysis on the Romanian F !" industry, based on #uestionnaires, #uantitative but also #ualitative methods. (eferences
Aaker, $avid A. %&&%. Managing 0rand 3quit . 'ew (ork) Free *ress. %&&+. , easuring -rand .#uity across *roducts and /liver, Richard 0. %&&1. 2atisfaction$ # 0ehavioral %erspective on the Consumer. 'ew (ork) c"raw-2ill. Ackerman, 0. 3%&&45, 6ecrets of the corporate brand, #cross the 0oard, 7ol. 89 'o. %, pp. 88-+. -almer, :. .;. 3%&&95, !orporate branding and connoisseurship, 5ournal of General Management, 7ol. <% 'o. %. -einhocker, ..$. and =aplan, 6. 3<>><5, ,;ired of 6trategic *lanning?@ The Mc+inse ?uarterl , nr <. -ennet, *.$. 3%&&95, 8ictionar of Marketing Terms, !hicago) American arketing Association. -oonghee (oo, 'aveen $onthu and 6ungho 0ee, An .xamination of 6elected arketing ix .lements and -rand .#uity, 5ournal of the #cadem of Marketing 2cience <>>>A <4A %&9 -orden, '.2. 3%&+B5, ,;he concept of the arketing ix@, 5ournal of #dvertising 1esearch, :une, pp <-1. -rown, 6. and .isenhardt, = 3%&&45, Competing on the edge$ 2trateg and 2tructured Chaos! -oston, A) 2arvard -usiness 6chool *ress. -rown, ;.:. and $acin, *.A. 3%&&15, ;he !ompany and the product) corporate associations and !onsumer *roduct Responses, :ournal of arketing, 7ol. +%, no %, :an %&&1 !apon, '., 2ulbert, :. . 3<>>>5, Marketing in the '-st Centur , *earson .ducation. !hristian "rCnroos, From arketing ix to Relationship arketing) ;owards a *aradigm 6hift in arketing, anagement $ecision, 7ol. 8< 'o. <, %&&B, pp. B-<> !hristopher, . 3%&4&5, ,;he .xistential !onsumer@, 3uropean 5ournal of Marketing, 7ol. 3- ' 4, pp. 4>4B. !oulthart, :. Fast oving !onsumer "oods. <>>+. D6 $epartment of !ommerce. Retrieved on <>>1->1->& available online) http)EEwww nationmaster.comEencyclopediaEFast- oving-!onsumer- "oods, seen %<.>9.<>>& !owell, $.W. 3%&4B5, The Marketing of 2ervices, Fnstitute of arketing and the !A Foundation, 2eineman *rofessional *ublishing. $e !hernatony, 0. 3%&&&5, -rand management through narrowing the gap between brand identity and brand reputationG, :ournal of arketing anagement, 7ol. %9 pp.%91-1& $e !hernatony, 0. 3<>>%5, From 0rand @ision to 0rand 3valuation, -utterworth H 2einemann, Identit ! 1eputation! and the Corporate 0rand, /xford Dniversity *ress, /xford $ixon, $.F. and -lois, =.:. 3%&485, ,6ome 0imitations of the B *Is as a *aradigm for arketing,@ =eith :. -lois, in 0ack to 0asics, *roceedings of the arketing .ducation "roup, !ranfield 6chool of anagement %&48, pp. &<-%>1. $odds, William -., =ent -. onroe, and $hruv "rewal. %&&%. ,.ffects of *rice, -rand, and 6tore Fnformation on -uyersI *roduct .valuation.@ 5ournal of Marketing 1esearch <4 3August5) 8>1-8%&. .. !onstantinides, ;he arketing ix Revisited) ;owards the <%st !entury arketing, 5ournal of Marketing Management <>>+, <<, B>1-B84 .do RaJh, ;he .ffects of arketing ix .lements on -rand .#uity, This paper was originall published in *rivredna kretanJa i eknomska politika &3conomic Trends and 3conomic %olic * 7o. -('! '((<! pp. A(;9.. Ferris, *aul, :ames /liver, and !ornelis de =luyver. %&4&. ,;he Relationship -etween $istribution and arket 6hare.@ Marketing 2cience 4 3<5) %>1-%<1. "ary l. 0ilien, Advisor <) modeling the marketing mix decision for industrial products, anagement science, vol. <9, no. <, February %&1& "upta, 6unil. %&44. ,Fmpact of 6ales *romotions on When, What, and 2ow uch to -uy.@ 5ournal of Marketing 1esearch <9 3'ovember5) 8B<-899. 2elsen, =ristiaan and $avid 6chmittlein. %&&B. ,Dnderstanding *rice .ffects for 'ew 'ondurables) 2ow *rice Responsiveness 7aries Across $epth-of-Repeat !lasses and ;ypes of !onsumers.@ 3uropean 5ournal of Bperational 1esearch 1+ 3:uly5) 89&-81B.

1322

Challenges of the Knowledge Society. Economy

Janka Petrovi ov, Advertising performance of the fast moving consumer goods companies, Studia Universitatis Vasile Goldis Arad, Stiinte conomice,!"#!"$" %irst part Jo&&er, '( )!""$* %rinciples and %ractice of Marketing, +hird edition, ,cGra- .ill( /aufman, A(S( )$001*, +echnolog2 and volution3 scaping the 4ed 5ueen ffect, The Mc+inse ?uarterl , nr 4, pp $$67$!0( /no8, S( and ,aklan, S( )$006*, Competing on @alue, %(+( Pitman, 9ondon( /otler P(, Armstrong, G( $00:( Principles of ,arketing( ;e- Jerse23 Prentice 7 .all, <nc(, $00:( <S=; "7$>7 ?$60167>( /otler, P( )$0@?*, Marketing Management, ngle-ood Aliffs, ;e- Jerse2B Prentice7.all, $st edition( /otler, P( )$06:*, Marketing Management3 Anal2sis, planning and Aontrol, %ifth edition, Prentice7.all, ngle-ood Aliffs, ;e- Jerse2( /otler, P( )!"">*, Marketing Management, $$th dition, Prentice .all <nternational ditions( 9auter&orn, =( )$00"*, ;e- marketing litan23 four Ps passC3 A7-ords take over( #dvertising #ge( ,4 ):$*, Dcto&er, p!@( 9e-is, '( and =ridger, '( )!"""*, +he soul of the ne- consumer3 authenticit2 7 -hat -e &u2 and -h2 in the ne- econom2( 9ondon3 =reale2( ,ar2 Jo .atch, ,aEken SchultF, =ringing the corporation into corporate &randing, uropean Journal of ,arketing, Vol( >? ;o( ?#6, !"">, pp( $":$7$"@: ,cAarth2, (J( )$0@:*, 0asic Marketing! a Managerial #pproach, .ome-ood, <ll(, 4ichard '( <r-in, <nc( ,cdonald, ,(, de Ahernaton2, 9( and .arris, %( )!""$*, Aorporate marketing and service &rands3 moving &e2ond the fast7moving consumer goods model, 3uropean 5ournal of Marketing, Vol( >1, pp( >>171>( ,eer, 'avid( $001( S2stem =eaters, =rand 9o2als, and 'eal Shoppers3 ;e- <nsights <nto the 4ole of =rand and Price( 5ournal of #dvertising 1esearch >1 ),a2#June*3 4A!74A?( ,ulhern, %(J( )$00?*, 4etail ,arketing3 from 'istri&ution to <ntegration, International 5ournal of 1esearch in Marketing, Vol( 45, pp( $">7$!:( ; <9 .( =D4' ;, .arvard =usiness School, Journal of Advertising 4esearch, Classics! @olume II! 2eptember -.:)! D8ford( Pride, G(,(, %errel, D(A( $000( ,arketing Aoncepts and Strategies( =oston3 .oughton ,ifflin Aompan2, !"""( <S=;3 "7>0170?:6>7@( Proceedings of the ,arketing ducation Group Aonference, Salford, :>0 71$( 4afiH, ,( and Ahmed, P(/( )$00!*, +he ,arketing ,i8 4econsidered, +he ,arketing ,i8 4evisited :>? 4afiH, ,( and Ahmed, P(/( )$001*( Using the ?Ps as a generic marketing mi8, an e8plorator2 surve2 of U/ and uropean marketing academics Sha-( 4(, ,errick '( !""1( ,arketing Pa2&ack( .arlo-3 Pearson ducation, !""1( <S=; " !?> @666: ?( Soltani ( and col(3 Ghat does )process* control meanI !""?( <n3 ,anagers vie-, !""?( <SS; $?:67 ?101( Sheth, J(;(, Gardner, '(,(, Garett, '(,( )$066*( Marketing Theor $ 3volution and 3valuation, ;e- Jork3 John Gile2 K Sons, <nc( Simon, Aarol J( and ,ar2 G( Sullivan( $00>( +he ,easurement and 'eterminants of =rand Huit23 A %inancial Approach( Marketing 2cience $! )Ginter*3 !671!( Sirg2, ,( Joseph and A( Aoskun Samli( $061( A Path Anal2tic ,odel of Store 9o2alt2 <nvolving Self7 Aoncept, Store <mage, Geographic 9o2alt2, and Socioeconomic Status( 5ournal of the #cadem of Marketing 2cience $> )Summer*3 !@17!0$( Sriram, V( and SapienFa, .(J( )$00$*( An empirical investigation of the role of marketing for small e8porters( 5ournal of 2mall 0usiness Management, Vol( 36):*3 >>7:> Srivastava, 4aEendra and Allan '( Shocker( $00$( =rand Huit23 A Perspective on <ts ,eaning and ,easurement( Marketing 2cience Institute 9orking %aper 2eries( 4eport ;o( 0$7$!:( Aam&ridge, ,A3 ,arketing Science <nstitute( Gang, %(, .ead, ,( and Archer, ;( )!"""*, A relationship7&uilding model for the Ge& retail marketplace, Internet 1esearch$ 3lectronic 7etworking #pplications and %olic , Vol( 47, nr 1, pp( >?:7>6:( Golf, '(=(, )$006*, 'evelopmental relationship marketing )connecting messages -ith mind3 an empathetic marketing s2stem*( 5ournal of Consumer Marketing, Vol( 4+, nr 1 $006, pp( ::07:@?( Judelson, J( )$000*, Adapting ,cAarth2Ls %our PLs for the +-ent27first Aentur2, 5ournal of Marketing 3ducation, Apr 00, Vol( 34, issue $, p @"( Meithaml, Valarie A( $066( Aonsumer Perceptions of Price, 5ualit2, and Value3 A ,eans7 nd ,odel and S2nthesis of vidence( 5ournal of Marketing 1! )Jul2*3 !7!!(