5. What are the bad sides?

6. - Ignoring the role of competition

7. - Ignoring the role of competition - sparse empirical knowledge of advertising effectiveness in building awareness for mature products

8. - Ignoring the role of competition - sparse empirical knowledge of advertising effectiveness in building awareness for mature products - lack of guidelines to the optional strategies

9. - Ignoring the role of competition - sparse empirical knowledge of advertising effectiveness in building awareness for mature products - lack of guidelines to the optional strategies - no information about competitors awareness and strategies

10. Oligopoly Market’s Model

17. Lets test our model on real data

18. We will use data from five different car brands Fiat Punto Opel Corsa Ford Fiesta Peugeot 206 Renault Clio

19. First, we take phone interviews to calculate brand awareness data.

20. We add mathematical approaches to estimate model to the gathered data

21. You can see how oligopoly model fits the awareness data a w a r e n e s s

22. Now lets apply our model to find optimal ad strategy’s for the brand managers

23. We can find optimal amount of money that should be invested in media advertisement (in buying GRP’s)

24. This optimal strategy gives the best return in the terms of more brand awareness and less money spend on advertising

25. By watching after optimal strategy we can reveal inverse allocation principal …

26. The greater (smaller) awareness level , the smaller (greater) advertisement spending .

27. Small brands should spend more on advertising, whereas mature brands may “fly on automatic pilot” without advertising heavily and relying more on brand purchase and consumption experience to maintain awareness

28. When all brand’s are using optimal strategy’s the market soon comes to equilibrium state

29. We can calculate exact share of market for each brand in the equilibrium state

30. Using our model we can mathematically prove that in mature market, the category ad spending increases as the number of brands increases

31. We can count that mature product category can sustain three or more brands

32. Also we reveal that managers can reduce the category size to three brands by increasing ad effectiveness

33. - We build model of brand awareness in dynamic oligopoly markets REVIEW:

34. - Managers can use this model to assess ad effectiveness and predict competitors awareness - We build model of brand awareness in dynamic oligopoly markets REVIEW:

35. - Managers can use this model to assess ad effectiveness and predict competitors awareness - We build model of brand awareness in dynamic oligopoly markets - We build optimal strategy REVIEW:

36. - Managers can use this model to assess ad effectiveness and predict competitors awareness - We build model of brand awareness in dynamic oligopoly markets - We build optimal strategy - We can predict the equilibrium market state REVIEW:

37. - Managers can use this model to assess ad effectiveness and predict competitors awareness - We build model of brand awareness in dynamic oligopoly markets - We build optimal strategy - We can predict the equilibrium market state - We reveal inverse allocation principle REVIEW:

38. Presentation based on article: “ Building Brand Awareness in Dynamic Oligopoly Markets” Authors: Prasad A.Naik, [email_address] Ashutosh Prasad, [email_address] Suresh P.Sethi, [email_address] Made by Ivan Petrov, i.petrov.msu@gmail.com