• Asia Marketing Journal
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• v.15 no.3
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• pp.53-77
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• 2013

As advertising and promotions are categorized as operating expenses, managers tend to reduce marketing budget to improve their short term profitability. Gauging the value and accountability of marketing spending is therefore considered as a major research priority in marketing. To respond this call, recent studies have documented that financial market reacts positively to a firm's marketing activity or marketing related outcomes such as brand equity and customer satisfaction. However, prior studies focus on the relation of marketing variable and financial market variables. This study suggests a channel about how marketing activity increases firm valuation. Specifically, we propose that a firm's marketing activity increases the level of the firm's product market information and thereby the dispersion in financial analysts' earnings forecasts decreases. With less uncertainty about the firm's future prospect, the firm's managers and shareholders have less information asymmetry, which reduces the firm's cost of capital and thereby increases the valuation of the firm. To our knowledge, this is the first paper to examine how informational benefits can mediate the effect of marketing activity on firm value. To test whether marketing activity contributes to increase in firm value by mitigating information asymmetry, this study employs a longitudinal data which contains 12,824 firm-year observations with 2,337 distinct firms from 1981 to 2006. Firm value is measured by Tobin's Q and one-year-ahead buy-and-hold abnormal return (BHAR). Following prior literature, dispersion in analysts' earnings forecasts is used as a proxy for the information gap between management and shareholders. For model specification, to identify mediating effect, the three-step regression approach is adopted. All models are estimated using Markov chain Monte Carlo (MCMC) methods to test the statistical significance of the mediating effect. The analysis shows that marketing intensity has a significant negative relationship with dispersion in analysts' earnings forecasts. After including the mediator variable about analyst dispersion, the effect of marketing intensity on firm value drops from 1.199 (p < .01) to 1.130 (p < .01) in Tobin's Q model and the same effect drops from .192 (p < .01) to .188 (p < .01) in BHAR model. The results suggest that analysts' forecast dispersion partially accounts for the positive effect of marketing on firm valuation. Additionally, the same analysis was conducted with an alternative dependent variable (forecast accuracy) and a marketing metric (advertising intensity). The analysis supports the robustness of the main results. In sum, the results provide empirical evidence that marketing activity can increase shareholder value by mitigating problem of information asymmetry in the capital market. The findings have important implications for managers. First, managers should be cognizant of the role of marketing activity in providing information to the financial market as well as to the consumer market. Thus, managers should take into account investors' reaction when they design marketing communication messages for reducing the cost of capital. Second, this study shows a channel on how marketing creates shareholder value and highlights the accountability of marketing. In addition to the direct impact of marketing on firm value, an indirect channel by reducing information asymmetry should be considered. Potentially, marketing managers can justify their spending from the perspective of increasing long-term shareholder value.

• The Journal of Economics, Marketing and Management
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• v.6 no.4
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• pp.1-16
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• 2018

Purpose - This study will investigate and identify the relationship between brand image, brand attitude and intent to purchase based on subjects that have remembered or watched more than one storytelling marketing ad related to airlines. The purpose of the project is to secure market competitiveness by presenting the basis for and use of the marketing strategy using storytelling, which can capture the goodwill of the aerospace competition market in the future. Research, design, data, and methodology - Prior to the research model and hypothesis testing phase, a verification factor analysis was conducted to assess internal consistency among each measurement item and to ensure reliability and validity of the measurement tool. Further, the organization was assessed for validity by calculating the mean variance estimation (AVE) and the construction concept reliability (CCR) through a positive factor analysis. Hypothesis verification was analyzed through a structural equation model, and each concept set in the hypothesis was entered as a potential variable, and each measurement item was entered as an observation variable. Results - Airline's storytelling marketing has a significant impact on the brand image and two emotional and cognitive responses have been shown to influence the brand image. In addition, airline storytelling marketing has a significant impact on brand attitudes and airline storytelling marketing derived from factor analysis has shown two emotional and cognitive responses to brand attitudes. Conclusions - The parts derived based on the research results show that storytelling marketing has a strong influence on the airline's brand image and attitude, and that it is necessary for airlines to have a brand image and attitude. Also, forming a favorable brand image has a significant impact on brand attitudes. We believe that by presenting basic data to the aviation industry in future research on airline storytelling, we will be able to increase understanding and contribution to development of storytelling marketing in aviation.

• Journal of Global Scholars of Marketing Science
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• v.20 no.2
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• pp.173-178
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• 2010

A privately held, third generation family owned company, Boom Technologies, Inc. (BTI), a provider of products and services to the electric utility, telecommunications and contractor markets, continues to make progress in exporting. Although export sales only equaled 5% of total revenue in 2008, BTI has an entire export division. Their export division's Managing Director reveals the trial and errors of a privately held company and their quest for success overseas. From its inception, BTI has always believed its greatest asset is its employees. When export sales struggled due to lack of strategy and direction, BTI hired a Managing Director for its export division. With leadership and guidance from BTI's president and from the Managing Director, they utilized the department's skills and knowledge. Structural changes were made to expand their market presence abroad and increase export sales. As a result, export sales increased four-fold, area managers in new countries were added and distribution networks were successfully cultivated. At times, revenue generation was difficult to determine due to the structure of the company. Therefore, in 1996, the export division was restructured as a limited liability company. This allowed the company to improve the tracking of revenue and expenses. Originally, 80% of BTI's export sales came from two countries; therefore, the initial approach to selling overseas was not reaching their anticipated goals of expanding their foreign market presence. However, changes were made and now the company manages the details of selling to over 80 countries. There were three major export expansion challenges noted by the Managing Director: 1. Product and Shipping - The major obstacle for BTI was product assembly. Originally, the majority of the product was assembled in the United States, which increased shipping and packaging costs. With so many parts specified in the order, many times the order would arrive with parts missing. The missing parts could equate to tens of thousands of dollars. Shipping these missing parts separately in another shipment also cost tens of thousands of dollar, plus a delivery delay time of six to eight weeks; all of which came out of the BTI's pockets. 2. Product Adaptation - Safety and product standards varied widely for each of the 80 countries to which BTI exported. Weights, special licenses, product specification requirements, measurement systems, and truck stability can all differ from country to country and can serve as a type of barrier to entry, making it difficult to adapt products accordingly. Technical and safety standards are barriers that serve as a type of protection for the local industry and can stand in the way of successfully pursuing foreign markets. 3. Marketing Challenges - The importance of distribution creates many challenges for BTI as they attempt to determine how each country prefers to operate with regard to their distribution systems. Some countries have competition from a small competitor that only produces one competing product; whereas BTI manufactures over 100 products. Marketing material is another concern for BTI as they attempt to push marketing costs to the distributors. Adapting the marketing material can be costly in terms of translation and cultural differences. In addition, the size of paper in the United States differs from those in some countries, causing many problems when attempting to copy the same layout and With distribution being one of several challenges for BTI, the company claims their distribution network is one of their competitive advantages, as the location and names of their distributors are not revealed. In addition, BTI rotates two offerings yearly: training to their distributors one year and then the next is a distributor's meeting. With a focus on product and shipping, product adaptation, and marketing challenges, the intricacies of selling overseas takes time and patience. Another competitive advantage noted is BTI's cradle to grave strategy, where they follow the product from sale to its final resting place, whether the truck is leased or purchased new or used. They also offer service and maintenance plans with a detailed cost analysis provided to the company prior to purchasing or leasing the product. Expanding abroad will always create challenges for a company. As the Managing Director stated, "If you don't have patience (in the export business), you better do something else." Knowing how to adapt quickly provides BTI with the skills necessary to adjust to the changing needs of each country and its own unique challenges, allowing them to remain competitive.

• Journal of Korean Academy of Nursing Administration
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• v.1 no.1
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• pp.22-34
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• 1995

Health care marketing can be defined as a process of developing, promoting and administering health care services for the benefits of hospitals as well as consumers. Researchers have reported that one of the significant attributes in the selection of hospital is a client's perceived image of the hospitals. Especially the image of nursing services was one of the important factors of the hospital image. The main purposes of the study were 1) to define the positioning about 5 hospitals' image of nursing services. 2) to define the effects of image attributes to the iamage of hospital nursing services. Eighteen hundred questionnaires were distributed to the parents of middle schools and high schools in Seoul. Among them, 1340 cases were returned but 849 cases were turned out to be useful data and used in final analysis. In data analysis, $SPSS\;/PC^+$ and PC-MDS programs were used for descriptive statistics, multiple regression, and drawing perceptual maps. The image of hospital nursing services was measured developed by the author through literature review and content validation. Reliability coefficients was found to be statistically appropriate level of confidence(Cronbach's Alpha=.8617). The results were as follows : 3) The perceptual map shows that hospital A, B and C,D,E were divided into five groups(See Fig. 1). That is, hospital A, and B are located in a close position and hopital C & E are located at opposite position between X-axis, Hospital D was located in the middle area of the hospital C and:E. In conclusion, this research visiblely depicted perceptual maps using MDS of the consumer's image about hospital nursing services. Since hopital nursing services were differentiated by the image attributes in consumer's perception, the results of the study can help hospital managers plan marketing strategy according to their strong points or weak points. Because the necessity of marketing in recent health care was importantly recognized, this research which is adopting posititioning concept will contribute to the consumers and hospital organizations.

• Korean Institute of Interior Design Journal
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• v.19 no.5
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• pp.95-104
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• 2010

One of 21st century's main paradigms is a 'Culture', and people started to express their 'cultural desires and demands' regarding public environments. Accordingly central and local governments are paying attention to these demands from their citizens and trying to establish the policies to meet these needs. This research is done to suggest the strategy programming model to support the executions of culture-centered public designs which are based on the local resources and identities. The entire research contains three sub-topics. First topic is setting the prototype phases of strategy programming. Second topic is analyzing the associated indices for each prototype phase. Third topic is suggesting Matrix Model in which the prototype phases and their associated indices are linked. Among three topics, this paper deals with the first one - the prototype phases of strategy programming. It studies this subject in relation with Place Marketing which emphasizes the local resources and identities. The prototype phases are comprised of 3 steps for Place Strategy and 4 steps for Marketing Strategy. Place Strategy should be considered prior to Marketing Strategy because in culture-centered public design, locality has priority over other concerns. The phases for Place Strategy includes 'Resource_analyzing of local resources', 'Mission_setting a purpose', and 'Targeting_segmenting target groups'. The phases for Marketing Strategy involves 'Organization_instituting the main body and/or partnership', 'Image Positioning_setting an unique local image', 'Point_realizing the product', and 'Channel_deciding the sales promotion tools'.

• Journal of the Korean Society of Clothing and Textiles
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• v.28 no.2
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• pp.212-223
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• 2004

The purpose of this study is 1) to identify Chinese environment for investment and apparel market, 2) to analyze the current situations of Korean fashion brands＇entry to Chinese market, 3) to analyze the marketing strategies to China according to product category, and 4) to identify merits and problems of Chinese market. For data collection, secondary resources were collected, and the telephone interview with merchandisers were implemented with brand managers. Twenty-one fashion brands were included for the study. Results of the study were as followed： 1) China was a big potential apparel market due to its rapid economic growth. Apparel purchase behavior and clothing preference of Chinese consumers were various by regional groups. 2) The motives of entry to China were to competition in domestic markets, saving raw material cost. The entry modes to China were direct export, license and regional manufacturing system. 3) Marketing strategies were to pursue high quality branding, high pricing and placing strategies with high-class department stores. Also star marketing were used with ＂Han Rue＂. Also various promotion strategies were implemented such as fashion show and unique VMD. 4) The merits of Chinese market were high potential market for export, close proximity, cultural similarity and Han-Ryu syndrome. Problems of Chinese market for export were lack of experts on Chinese market, fierce competition in China, and unstable economic policies.

• Korean Institute of Interior Design Journal
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• v.17 no.2
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• pp.140-149
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• 2008

The purpose of this study is to consider the present situation and cases of culture marketing as brand identity shown in Window Display Area, focusing on department store and fashion brand, one of the recent cultural trends. Display in windows of existing department store and fashion brand has represented ultimate goal of sales by coordination of products, seasons and themes based on profits. However, display has recently become brand identity which department store and fashion brand create by correlating art and commercialism since the era of various lifestyles and emotional consumption. Through identity in department store and fashion brand, cultural marketing shown in show window display space cooperates with customers, corporations, artists and culture and art foundations. The result of this research is the following : First, corporations result in improvement in their image and brand perception with a distinctive marketing strategy. Second, as an agent of art customers form a positive relation with corporations and can feel emotional values and enjoy culture through cultural marketing contents, which are shown by department store and brand. Third, we can expect that artists, culture and art foundations form the best partnership by creative activities with department store and brand and cultural marketing activities make a great contribution towards society.

• Proceedings of the Korean Institute of Information and Commucation Sciences Conference
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• 2013.10a
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• pp.228-229
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• 2013

With the development of economy, people's self-interest about one's appearance has been increasing. Among them, especially interest in women's fashion is increasing very. By increasing interest of women's appearance, requirements of various women's fashion marketing ways are increasing and the women's fashion market is expanding as much as it is. Therefore, in this paper, we propose the strategies for marketing activation in women's fashion after consideration of general women's fashion marketing strategies. Through the activation of the marketing strategies, marketing in a women's fashion market is expected to be competitive.

• Journal of Distribution Science
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• v.13 no.5
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• pp.91-102
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• 2015

Purpose - This study aims to build a systematic frame for effective marketing performances by prioritizing product type and pertinent channel that are appropriate for digital channel characteristics. FCB grid model was used to define a product type, and Internet communication satisfaction index was considered as a marketing performance measuring tool for digital channel. Research design, data, and methodology - As systematic understanding for Digital marketing is still unfamiliar to even professional marketer, the hypothesis was established based on preliminary research by conducting a qualitative survey of marketing experts who already experienced digital marketing in the fields as well as existing related study literature. Through a preliminary research, the degree for understanding for digital marketing, current digital marketing (including product/channel mix) execution status, and difficulties for marketers who had experienced digital marketing were figured out. Based on preliminary research, the main part of survey was designed to examine which type of product would be effective for digital marketing and which digital channel would be effective to achieve marketing performance in line with marketing objectives. To collect data, the questionnaire survey was conducted for professional marketers who had experienced digital marketing in 10 different fields including FMCG, cosmetics, distribution industry for one month (July, 10, 2014~Aug, 10, 2014). A total of 90 questionnaire were distributed and 66 questionnaires were used for the analysis, excluding the unanswered and insincere questionnaires. The data were analysed using SPSS ver.18.0. Results - The analysis for product type which is pertinent to digital marketing and prioritization for digital channel per digital marketing performance type could be summarized as followings. First, high involvement buying decision type of product and rational purchasing decision type of product in FCB grid are more effective for digital marketing in terms of marketing performance. Therefore, marketers in field would prioritize considering product type before executing digital marketing. Second, factor for sales increase, potential consumer creation and brand awareness was represented respectively 31.25%, 21.9%, and 20.8% as a result of factor analysis in terms of digital marketing channel performance. Third, effective major digital channel per digital marketing performance factor was differently identified as each digital channel has its own peculiarity. For instance, search engine is more effective for increasing sales while social media such as facebook and Kakaotalk is more effective for encouraging consumer participation. Conclusions - As a result of this study, product type and peculiarity which were pertinently fit to digital marketing were identified by using FCB grid model, and also suggested framework for decision making of digital channel selection in line with marketing objectives for effective marketing performance. It also provided insight to professional marketer which type of product could be effective for digital marketing execution as well as which factors should be measured for digital marketing performance.

• Asia Marketing Journal
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• v.14 no.4
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• pp.95-116
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• 2013

AMOREPACIFIC has rapidly grown to become a successful global brand by persistently seeking and achieving success in foreign markets. In 2011, AMOREPACIFIC was ranked as one of the global top 20 cosmetics companies. What makes AMOREPACIFIC's global success noteworthy is that AMOREPACIFIC challenged the France and the US market, where competition level is the toughest. Lolita Lempicka, AMOREPACIFIC's perfume brand, was chosen as one of the top seven most popular brands in the women's perfume market in France. In addition, Amorepacific, AMOREPACIFIC's namesake skincare brand, is currently recognized as a top prestige brand in the USA. Their success played a significant role as a bridgehead for AMOREPACIFIC in becoming a global cosmetics company. The main object of this case study is to analyze how AMOREPACIFIC became a global cosmetic company through building key brands such as Lolita Lempicka and Amorepafic, among others. Therefore, this study reviewed AMOREPACIFIC's unconventional approach in launching Lolita Lempicka in France, and Amorepacific in the US by focusing on how they foresaw the future opportunities and employed innovative marketing strategies. Specifically, we focused on Amorepacific's marketing strategy under the critical period when AMOREPACIFIC achieved great success in France with Lolita Lempicka (between 1997 and 2004) and in US with the brand, Amorepacific (2003-2008). The case of AMOREPACIFIC's success in the global markets can give valuable lessons to companies that want to extend their businesses to foreign countries and ultimately become global. One such lesson is the importance of building a successful pioneer brand in a powerful bridgehead market. While domestic competitors first entered into less competitive markets such as those in South-East Asia, AMOREPACIFIC challenged the toughest markets such as the French and US markets where the incumbent companies waged the most intensive and severe battles against Lolita Lempick and Amorepacific. Through the success in France and US market, however, AMOREPACIFIC built a powerful base for its successful global expansion. Another valuable lesson is the importance of foresight in uncovering great opportunities hidden behind the trends without losing focus on the brand's core character and values. Lolita Lempicka and Amorepacific showed excellence in foresight competition, which led them to succeed against the intense competition from Goliath companies. If Lolita Lempicka and Amorepacific had just followed the popular market trend at the time, they would have never succeeded.