Marketing Strategy and Uncertainty

by Jagpal, Sharan

• ISBN13: 9780195125733
• ISBN10: 0195125738
• Format: Hardcover
• Copyright: 1998-12-31
• Publisher: Oxford University Press

Summary

This first-of-its-kind book develops a rigorous integrated theory of marketing under uncertainty. Cutting across traditional functional boundaries, the author develops behaviorally rich and empirically implementable solutions to fundamental but previously neglected strategic problemsincluding: coordinating marketing policy in a multiperiod framework under uncertainty choosing optimal policy when the data contain measurement error designing new products when consumers have heterogeneous attitudes to risk and uncertain perceptions selecting personnel and measuring performance in multiproduct firms when employees ability is unobservable designing optimal incentive schemes for decentralized multilevel organizations, multidivisional firms, and multinational corporations Marketing Strategy and Uncertainty is unique in content, form, and depth of coverage. It has been successfully class-tested in MBA and Executive Education programs at Columbia University, Rutgers University, and the International University of Japan and is ideal for courses in marketing management,strategy, sales force management, and advertising. The book's integrative approach to strategic decision making will appeal primarily to readers in marketing, but also in economics, finance, organization management, and industrial organization. Because of its unique presentation style, MarketingStrategy and Uncertainty is a must-read for students, executives, and researchers.

Table of Contents

Foreword	xi	(2)
Harry Markowitz
Preface	xiii
1 Strategic Pricing In a Dynamic Environment	1	(30)
1.1 Basic Pricing Concepts	1	(3)
1.2 Market Share and Strategic Pricing	4	(2)
1.3 Cost Dynamics	6	(4)
1.4 Demand Dynamics	10	(4)
1.5 Cost and Demand Dynamics	14	(2)
1.6 Model Extensions	16	(3)
1.7 Concluding Remarks	19	(4)
Appendix A: Comparison of Strategic and Myopic Pricing Plans in the Presence of Experience Effects	23	(3)
Appendix B: Comparison of Strategic and Myopic Pricing Plans in the Presence of Demand Dynamics	26	(3)
Appendix C: Comparison of Strategic and Myopic Pricing Plans: Cost Dynamics and Demand Dynamics	29	(2)
2 Pricing Under Uncertainty and Heterogeneity	31	(23)
2.1 Pricing under Uncertainty: Break-even Pricing	31	(3)
2.2 Pricing under Uncertainty: Some Refinements	34	(4)
2.3 Pricing under Uncertainty: The Multiperiod Case	38	(2)
2.4 Bundling	40	(3)
2.5 Pricing Using Coupons: A One-Period Model	43	(2)
2.6 Pricing Using Coupons: A Multiperiod Model	45	(3)
2.7 Price Skimming	48	(3)
2.8 Concluding Remarks	51	(3)
3 Consumer Behavior: A Theoretical Perspective	54	(24)
3.1 A Lancasterian Model: Homogeneous Perceptions	54	(4)
3.2 The Lancasterian Model: Some Refinements	58	(4)
3.3 Prospect Theory and a Hybrid Model of Consumer Behavior	62	(6)
3.4 The Effect of Uncertainty	68	(5)
3.5 Concluding Remarks	73	(5)
4 Consumer Behavior: An Empirical Perspective	78	(46)
4.1 Limited Information	78	(2)
4.2 Conjoint Analysis: Basic Methodology	80	(6)
4.3 Conjoint Analysis: A Review and Some Refinements	86	(10)
4.4 Conjoint Analysis: A Behavioral Perspective	96	(5)
4.5 The Measurement of Perceptions	101	(1)
4.6 An Integrated Preference Model	102	(7)
4.7 Concluding Remarks	109	(15)
5 Coordinating the Channel structure	124	(13)
5.1 The Manufacturer-Distributor Channel	124	(4)
5.2 Channel Heterogeneity	128	(2)
5.3 New Product Introduction: A Single-Period Model	130	(2)
5.4 New Product Introduction: A Multiperiod Model	132	(3)
5.5 Concluding Remarks	135	(2)
6 Advertising Budgeting in a Competitive and Uncertain Environment	137	(64)
6.1 Choosing Advertising Budgets Under Certainty	137	(2)
6.2 Choosing Price and Advertising Under Certainty	139	(5)
6.3 Choosing Price and Advertising Under Uncertainty: The Single-Period Case	144	(8)
6.4 Choosing Price and Advertising Under Uncertainty: The Multiperiod Case	152	(8)
6.5 Choosing Advertising Policy Under uncertainty: The Multiproduct Case	160	(3)
6.6 A Duopoly Model of Advertising Under Uncertainty	163	(2)
6.7 Determining Advertising Productivity: Empirical Issues	165	(11)
6.8 The Advertising Timing Decision: Pulsing	176	(3)
6.9 A Multiproduct Advertising Goodwill Model Under Uncertainty	179	(2)
6.10 Concluding Remarks	181	(20)
7 Media Planning In a Dynamic and Uncertain Environment	201	(27)
7.1 The Media Message Decision	201	(8)
7.2 The Media-Mix Decision	209	(7)
7.3 Uncertainty in Advertising Rates	216	(5)
7.4 Concluding Remarks	221	(7)
8 The Personal Selling Decision in a Dynamic and Uncertain Environment	228	(61)
8.1 The Certainty Case	228	(1)
8.2 The Uncertainty Case: Basic Model	229	(5)
8.3 The Uncertainty Model: Single-Period Extensions	234	(4)
8.4 The Hierarchy Problem in a Multiproduct Firm	238	(2)
8.5 Model Extensions: Multiperiod Effects	240	(2)
8.6 Satisfaction-Based Compensation Contracts	242	(3)
8.7 Sales Force Selection	245	(3)
8.8 Sales Force Training	248	(5)
8.9 The Sales Force Turnover Problem	253	(1)
8.10 Measuring Ability and Rewarding Performance	254	(6)
8.11 Model Extensions and Refinements	260	(2)
8.12 Concluding Remarks	262	(27)
9 Choosing Domestic and International Marketing Strategy in an Uncertain Environment	289	(23)
9.1 Domestic Marketing Strategy	289	(13)
9.2 International Marketing Strategy	302	(10)
10 Conclusion	312	(3)
References	315	(10)
Name Index	325	(3)
Subject Index	328