firm performance in e marketing age and spending on advertising

In e commerce over past 2 decades businesses provide an unpredictable marketing opportunities, the network comscore online sales of U.S products in 2007 reached $136.4 billion, 20% increase over the 2006 and in 2010 the sale increase to $176.9 billion. The European online sales reached to 323 billion Euros in 2011. In the new business world the e marketing has become the prevalent channels. To increase its importance the channel coordination through cooperative advertising between the retailer and its manufacturers. Co operational advertising plays important role in promotion of manufacturers retailers and retailer customers. The expenditure for cooperative advertising in U.S was $50 billion more recently. The increase in spending in cooperative, advertising has motivates us to explore more research. Advertising campaign create product attitude and to influence the potential consumers to purchase its product.

Advertising spending and firm value

It is suggested by all the SBUs that advertising spending have direct and indirect affect of firm’s sales and financial value. Advertising may generate favorable responses such as greater market awareness, quality competitiveness, customer preferences and brand image. To gain customer attention and bestow value to brands advertising may build creativity, firms increase the ads when the brand is under pressure to perform and gain customer equity and brand value. brand awareness, brand value and advertising in turn boost future sales and profits of the firm. Advertising faster penetrate the market and accelerate the velocity of consumer response, for the new product advertising develop instant awareness that may leads to more and faster cash flows. Advertising create a barrier to competition, provide bargaining power vis-à-vis, all of these benefits of advertising enable the firms to enjoy higher financial value. Advertising may decrease the investors search cost and signals firms specific competitiveness regarding its existing products and new projects.

The outcome expectancy path  
Advertising perception and expectancies it is easier to sell someone who has favorable impression of the brand offered, sale representative are more concern about the attitude of the customer towards brands that they are selling. Sale persons are concerned with and from the judgments about the quality and quantity of advertising in the market. The perceived size of the media schedule. To signaling the company’s commitment behind the brand, strong level of advertising and appealing message are important to the salesperson because this increase In chance that customer will aware about the brand favorably predisposed toward it. their are two type of consumer one who is the retailer, the retailer determine whether and how the brand is made available and represented to the customer at the point of purchase. The failure success of brand is the ultimate response of the final user of the product as they demonstrated through buying behavior.