文档介绍：Fang Wang & Xiao-Ping (Steven) Zhang
Reasons for Market Evolution and
Budgeting Implications
Identifying market evolution is a necessary step in persistence analysis of marketing input–output relationships.
Using the advertising–sales relationship to represent general marketing input–output dynamics, the authors
theoretically distinguish two types of market evolution: (1) intrinsic evolution, in which sales evolve independent of
advertising and temporary advertising can generate persistent effects, and (2) induced evolution, in which sales
evolution is supported by sustained advertising budgets in an intrinsic-stationary market and there are no real
persistent effects of temporary advertising. The proposed intrinsic market evolution test can identify intrinsic-
evolving and intrinsic-stationary markets. The authors analyze five major budgeting implications and provide
methods to quantify temporary and sustained budgeting. In general, in an intrinsic-evolving market, budgeting can
be short-term focused, whereas in an intrinsic-stationary market, the focus should be on sustained budgeting.
Percentage budgeting at a sufficient level can create induced evolution. Contrary to conventional wisdom,
temporary, intensive advertising campaigns are often not necessary. Empirical illustrations demonstrate the two
types of evolutions and the relationships between budgeting methods and sales performance.
Keywords: intrinsic market evolution, induced evolution, budgeting, time-series methods, persistent effects
onsider the following scenario: After an intensive market performance (., Is a temporary, intensive market-
store promotion and exposure on the Oprah Winfrey ing campaign necessary?), and (3) how to design budgeting
Cshow, Slim-Fast experienced a sudden sales strategies to attain and sustain market performance. For
increase. By closely monitoring daily store data, brand example, many marketing managers want to follow certain
managers wanted to det