Trade-off between two advertising strategies: coverage or penetration

Tian Wang and Ding Zhang

International Journal of Networking and Virtual Organisations, 2022, vol. 26, issue 3, 195-211

Abstract: There are two different basic advertising strategies, namely, enlarging the market coverage and improving the market penetration. Efforts in the first (coverage) strategy can be seen as handing out leaflets, advertising board and huge-crowd acquisition. Efforts in the second (penetration) strategy can be seen as improving product quality, service environment and positive word-of-mouth. Which one is more efficient, coverage or penetration? How do firm trade-off between the two advertising strategies? By establishing two-stage models, this paper explores the optimal advertising levels for the two strategies, respectively. After that, this paper compares the optimal profits under the two strategies in various market settings and finds the more efficient advertising strategy. Management insights are generated for decision-makings of firm managers.

Keywords: advertising; market coverage; market penetration. (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.inderscience.com/link.php?id=122853 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ids:ijnvor:v:26:y:2022:i:3:p:195-211

Access Statistics for this article

More articles in International Journal of Networking and Virtual Organisations from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().