Research On Advertising Strategies Of Enterprises

It is the main purpose on advertising management for an enterprise to determine suitable advertising budget plan, to put it in practice, and then to control the activities about sales promotion in markets according to the plan. The advertising function must be determined so that the advertising strategies are researched. First, the advertising function principle is analyzed systematically in terms of the micro and macro approach by this dissertation.1. The advertising is one of the components in the sales and marketing communication activities of an enterprise. The advertising affects the consumer's purchasing behavior and psychology and it brings about that the sales quantities will be increased. In general processes of purchasing decision making, there are five stages: giving rise to the requirement, needs and demands; intelligent; alternatives design and generation and evaluation; make the decision to buy; and post purchase action. The advertising has important impacts on consumer's purchasing behavior in all the processes above mentioned. From view of the decision factors on purchasing actions, there are two types of the decision factors. One type of factors is the products' information structure in the consumer mind, the other is the consumer emotion factors about the brand. The final goals of the enterprise advertising are not only to impact the information weight of its product in the consumer mind, but also to promote its brand loyalty degree. The factors of two aspects are supplementary each other, and it is not imperfect as short of any one. Summing up above mentioned, the enterprise advertising is be divided into two categories: product information advertising and brand loyalty advertising, and which are be measured respectively by the product cognition population and the degree of brand loyalty.2. Considering from the economics point, the advertising will affect the consumers' utility function, and then will affect the shape and/or position of the product demand curve. In this situation, at a given price level, the enterprises can increase their sales by advertising.On the basis of the analysis about consumers' behavior and the principle of advertising function, the new models are built by using the optimal control theory and the game theory, and focus on the following problems which are solved:(l)When the price is regarded as a variant of measuring sales promotion, the thesis obtains the formulation of optimal product price level;(2) The optimal investment ratio of two kinds of advertising is given with running the math model and the conclusion is 1. This means that when an enterprise determines the advertising investment, his optimal strategy is to keep the same ratio of the two kinds of advertising at a fix level. The formulation on optimal advertising expenditure is determined;(3)According to the calculation and deduction by running the models, the conclusions are as follows. If there are only two enterprises in the markets and theadvertising just persuades the consumers to buy their products to repulse rivals and the advertising can not expand the whole market demand, then the following results can be obtained. If the rival does not advertise, then the suitable strategy of the firm is to advertise and pursue the goal of profit maximizing. If an enterprise advertises to pursue the maximized profits, it is possible that the other enterprise will not advertise or also do to pursue the maximized profits. If the two enterprises both advertise to pursue the maximized profits, the market equilibrium profits will be decreased. When there are n enterprises in the market, the model's results are that the optimal advertising investment is relevant with the quantity of enterprises in the market, the more enterprises in the competitive market, the less the optimal advertising investment. Increasing the quantity of enterprises in the market, the optimal advertising investment, the product demand and the profit for each enterprise will be decreased...