Co-op Advertising Analysis Within A Supply Chain Based On Product Life Cycle

The channel coordination question in supply chain is always the scholarly research hot topic, cooperative advertising as a coordinated mechanism is paid attention by researchers gradually. The cooperative advertising is a cost allocation mechanism, which is the manufacturer provides the advertisement support for retailer and shares the certain proportion the advertising cost.The cooperative advertising enables the retailer to broadcast and publish the product advertising related manufacturer, the fee of such advertising is provided by manufacturer and the retailer based on the cooperative agreement.Cooperative advertising is a market operational scheme model in essence, which is implemented by the manufacturer and the retailer. In the cooperative advertising plan the fee which shares of the retailer is huge.This article launches the research in view of the supply chain cooperative advertising question, adopts the cooperative advertising strategy whether can give the manufacturer and the retailer brings the anticipated income, whether the retailer does have the enough motives to support and the manufacturer cooperation advertisement strategy, is biggest under what kind of cooperation manner supply chain overall income, how designs the mechanism to cause bilateral the profit all to enhance and the increase entire supply chain system profit and so on. We used the quota method to analysis this questions. First, after analysis of the massive domestic and foreign literatures and combined the market environment the enterprise faced and the traditional advertising marketing model's flaw, we have introduce the topic——based on the product life cycle supply chain cooperative advertising research. We use game method research enterprise's cooperative advertising strategy, simultaneously introduces the product life cycle theory to study under the different quarters' cooperative advertising strategy question.Next, we have established a manufacturer and two retailer 'vertical cooperative advertising gambling model, discussed under two kind of policy-making orders two completely not to cooperate the model, from price, local advertising investment, marginal returns and all quarters profit compared two models the characteristics and each gambling partners' strategy choice and the efficiency question.Through compared to each target, in not completely cooperate condition, if the retailer is willing to carry on such as the cooperative advertising channel coordinates, then he will be able to obtain more profits compares the retailer does not coordinate the channel, thus increased the retailer's enthusiasm to coordinate the channel.Once more, introduced five structures of the cooperative manner, according to the cooperation manner all gambled quarters to establish seven complete information dynamic gambling models, and has carried on the solution and the analysis to these seven models, thus obtained in different cooperation function expression under the manner price, marginal returns, local advertisement investment and each gambling partners profit, through compared each variable under the different policy-making structure relations, then analyzed each gambling partner's strategy choice and the efficiency question.Finally, we have pointed out this paper's main research results, the innovation and the insufficiency as well as the topic which further may study in this domain.