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Based on over 260 estimates, the mean elasticity of sales or market share to advertising is 0.1 percent. Another 450 field experiments suggest that changes in media, product, target segments, advertising scheduling, and advertising content are more likely to yield changes in sales than do changes in advertising weight. Numerous other studies suggest that advertising wear-in does not exist or occurs quite rapidly while advertising wear-out occurs more slowly. Details of and differences in these results by condition are discussed in this article. OVERVIEW “Advertising effectiveness in markets ” refers to market response to a firm’s (or a brand’s) advertising. I define “market response ” as the firm’s (or brand’s) choices, sales, or market share in real market contexts. Researchers have also examined the effects of advertising on consumer awareness, attitudes, beliefs, and intentions. These effects typically

The authors are listed in reverse alphabetical order. They gratefully acknowledge the support of IRI/Europanel, who provided the data on which this study is based. They thank the participants at the MSI Conference on Competitive Reaction for constructive comments on an earlier draft of this work. Financial support by the Flemish Science Foundation (F.W.O) under grant G.0145.97 and the Research Council of the Catholic University of Leuven under grant OT.96.4 is greatly How do competitors react to each other’s price-promotion and advertising actions? How do these reactions influence the net sales impact we observe? We answer these questions by performing a large-scale empirical study of the short-run and long-run reactions to promotion and advertising shocks in over 400 consumer product categories, over a four-year time span. Competitive reaction can be passive, accommodating or retaliatory. We first develop a series of expectations on the type and intensity of reaction behavior, and on the moderators of this behavior. These expectations are assessed in two ways. First, vector-autoregressive models quantify the short-run and long-run effect of a promotion or advertising action on competitive sales and on competitive reactions. By cataloging the numerical results, we are able to formulate

Abstract. The aim of the paper is to evaluate important marketing dimensions of global advertising through analysis and synthesis of certain theoretical knowledge in areas such as: the nature of advertising messages on global markets, modifying messages to necessities of local markets and influence of advertising on the choice the brand of the product. An insight into the marketing mix and analysis of above mentioned advertising (the aim of the paper) are focused on upgrading the image of the product as well as on the rise of sale and profit in global terms. Advertising is (aside from personal sale, promotion sale and publicity) a critical instrument of mix promotion. As a form of a company's communication with its environment and as a means of advancement of sale, advertising should point out utility and value advantages offered by the product to existing and potential customers. The power of successful transfer of promotion campaign around the globe is a considerable advantage of a globally oriented company in term of competitiveness. To expand globally it must find markets for its products worldwide. Locating more precisely target markets and lifting the level of detailed analysts of customer's buying motives in these markets the management of the company enchants successful implementation of its global advertising strategy. 1. THE NATURE OF A ADVERTISING MESSAGE TO GLOBAL MARKET Advertising message is of certain content, which is to be conveyed to a recipient. It is a part of mass public communication and a specific message in the process of mass communication characterized by: 1) its commercial character (it is created and published to initiate and guide the behavior of potential consumers at buying certain products and

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