The Value of Various Advertising in the Business Market

  The Importance of Effective Information Governance in the Digital Age Summary: The Value of Various Advertising in the Business Market The article by Yan (2010) explores the relationship between cooperative advertising, pricing strategy, and firm performance in the e-marketing age. Cooperative advertising involves a partnership between manufacturers and retailers where both parties share the costs of advertising. The study suggests that cooperative advertising can positively impact firm performance, particularly when combined with effective pricing strategies. This essay will summarize the main findings of the article and provide specific business examples to illustrate the value of various advertising in the business market. The research conducted by Yan (2010) reveals that cooperative advertising can significantly contribute to firm performance in the e-marketing age. By collaborating with retailers, manufacturers can leverage their joint resources to create more impactful advertising campaigns. This has been particularly relevant in the digital era, where online marketing channels allow for more targeted and cost-effective advertising efforts. One example of the value of cooperative advertising is seen in the partnership between Nike and Foot Locker. Nike collaborates with Foot Locker to promote its latest shoe releases through joint advertising campaigns. By sharing the costs and resources, both Nike and Foot Locker benefit from increased brand exposure and foot traffic to their retail stores. This cooperative advertising strategy helps both companies reach a wider audience and drive sales, ultimately contributing to their overall performance in the business market. Furthermore, the study suggests that the effectiveness of cooperative advertising is further enhanced when combined with appropriate pricing strategies. For example, in the fashion industry, luxury brands often collaborate with high-end retailers to advertise their products. These collaborations not only create a sense of exclusivity but also help justify the premium pricing associated with luxury goods. By showcasing their products in joint advertising campaigns, luxury brands reinforce their brand image and attract consumers willing to pay a premium for their products. On the other hand, discount retailers like Walmart or Target often partner with manufacturers to promote lower-priced products through cooperative advertising. This strategy helps these retailers communicate value and affordability to their target market, driving foot traffic to their stores and increasing sales volume. In conclusion, cooperative advertising has proven to be valuable in the business market, particularly in the e-marketing age. By collaborating with retailers, manufacturers can leverage joint resources, create more impactful advertising campaigns, and enhance firm performance. Business examples such as Nike and Foot Locker, as well as luxury brands partnering with high-end retailers or discount retailers promoting lower-priced products, illustrate the value of various advertising strategies in driving brand exposure, sales, and overall success in the business market.  

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