MANAGERIAL MARKETING ABSTRACTS

"Concentration Levels in the U.S. Advertising and Marketing Services Industry: Myth vs. Reality" Free Download
Harvard Business School Marketing Unit Working Paper No. 09-044

ALVIN J. SILK, Harvard Business School
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CHARLES KING, Greylock McKinnon Associates, Pleiades Consulting Group, Inc.
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This paper analyzes changes in concentration levels in the U.S. Advertising and Marketing Services (A&MS) industry using publicly released data that have been largely ignored in past discussions of the industrial organization of this industry, namely those available from the U.S. Census Bureau's quinquennial Economic Census and the Service Annual Survey. We define the A&MS industry in terms of nine sectors, each of which is represented by a separate 5 digit NAICS category. In so doing, we have sought to redress some of the measurement problems surrounding estimates found in the existing literature. Our main findings are threefold.

First, in the case of the core and largest sector, Advertising Agencies, firm level concentration as measured by Herfindahl-Hirschman Index (HHI) increased slightly but remained relatively low from 1977 to 2002. All of the HHI estimates readily satisfied the standard widely used to characterize an industry as "unconcentrated." We find mixed support for the hypotheses that the ranks of mid-sized agencies were depleted by ongoing waves of mergers and acquisitions and resulted in a polarized size structure. The size distributions of agency revenue have become more polarized in the sense that over time they appear more skewed, more dispersed, and exhibit greater inequality. The share of total receipts realized by small agencies fell while that of large agencies rose. However, the position of mid-sized agencies appears to have changed little over the period 1977-2002, as measured by the shares of agencies and receipts they represent.

Second, concentration levels in 1997 and 2002 varied across the nine sectors comprising the A&MS industry, but all were within the range generally considered as indicative of a competitive industry.

Third, we developed concentration ratios at the level of holding companies (HC's) and find that the four largest HC's captured between a fifth and a quarter of total revenue from the A&MS industry, a share that remained quite stable over the period, 2002-2006. These estimates are lower by an order of magnitude than estimates often cited in the trade press. Reasons for the discrepancy are discussed.

"How a New Market Emerges from a New Radical Product Innovation" Free Download
Private Capital Market Working Paper Series No. 2008-02-01

THOMAS E. VASS, The Private Capital Market, IEA
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Our interest in writing this article is to create a bridge between the scholarly and academic research on technological innovation and a private sector, for-profit business model that implements the ideas on innovation and entrepreneurship, primarily in metro regional economies.

In this article we explain how radical innovations create new future markets, and how investments can be targeted to those new innovative firms.

We conclude that technology innovation is a market event, not a technological event. The first key indicator of a potential investment opportunity would be the news announcements about the formation of tiny new high tech ventures, who had obtained their first round of investment capital from local angels. What the investor is looking for is a very small and very obscure market event whose significance is not at all obvious, at first glance. The important point is that the investor is searching for the emergence of a new market, and not the introduction of a new technology.

"Strategic Allocation of Marketing Resources: Methods and Managerial Insights" Free Download

VENKATESH SHANKAR, Mays Business School, Texas A&M University
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This article discusses how firms strategically allocate their resources between marketing and non-marketing variables, across products, markets, channels, customers and over the product life cycle. It presents resource allocation processes, models and insights with examples drawn from different companies and industries. It highlights emerging methods and research directions in strategic resource allocation and planning for both executives and researchers.

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Solicitation of Abstracts

This journal is now accepting submissions of abstracts and working papers (as well as abstracts of papers accepted for publication) in various areas of marketing management research, including conceptual and empirical studies providing insights and implications for the management of marketing activities. In general this journal will include papers that would be appropriate for the Journal of Marketing and substantive research in the Journal of Marketing Research. The typical papers would be either conceptual frameworks for examining marketing issues or empirical research testing hypotheses. The primary contribution of the research would be providing conceptual or empirical results to improve the understanding of issues confronting marketing managers or public policy makers. Relevant topics are listed below.

- Branding and Brand Management
- Customer Relationship Management

Customer Service
- New Product Development
- Product Line Management
- Sales Promotion
- Selling and Sales Management

Organizational Buying
- Advertising
- Pricing
- Marketing Strategy and Planning
- Internet Marketing and E-Commerce
- International Marketing
- Channel Management and Retailing
- Services Marketing

Nonprofit Marketing
- Business-to-Business Marketing

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MKTG SUBJECT MATTER EJOURNALS

MICHAEL C. JENSEN
Harvard Business School, The Monitor Company, Social Science Electronic Publishing (SSEP), Inc.
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ALVIN J. SILK
Harvard Business School
Email: asilk@hbs.edu

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Advisory Board

Managerial Marketing

ERIN ANDERSON
The John H. Loudon Chaired Professor of International Management/Professor of Marketing, INSEAD - Marketing

MARY JO BITNER
AT&T Professor of Services Marketing & Management, Research Director, Center for Services Leadership, Arizona State University - Marketing Department

STEVEN P. BROWN
Bauer Professor of Marketing, University of Houston - C.T. Bauer College of Business

GEORGE S. DAY
Professor, University of Pennsylvania - The Wharton School

SUSAN DOUGLAS
Paganelli-Bull Professor of Marketing and International Business, New York University - Department of Marketing

JOHN R. HAUSER
Kirin Professor of Marketing Co-director, MIT Sloan School of Management

JAN B. HEIDE
Irwin Maier Chair in Marketing, Churchill Professor of Marketing, University of Wisconsin - Madison - School of Business

DONNA L. HOFFMAN
Professor of Management and Co-Director - eLab, Vanderbilt University - Owen Graduate School of Management, University of California, Riverside - Department of Management and Marketing

KEVIN LANE KELLER
Osbourne Professor of Marketing, Tuck School of Business at Dartmouth

DAWN LACOBUCCI
Vanderbilt University

SCOTT NESLIN
Albert Wesley Frey Professor of Marketing, Tuck School of Business at Dartmouth

A. (PARSU) PARASURAMAN
Professor and Holder of the James W. McLamore Chair in Marketing, University of Miami - School of Business Administration

ROLAND T. RUST
David Bruce Smith Chair in Marketing, University of Maryland - Robert H. Smith School of Business

DAVID W. STEWART
Deputy Dean Robert E. Brooker Professor of Marketing, University of Southern California - Marshall School of Business

GERARD J. TELLIS
Jerry & Nancy Neely Chair in American Enterprise, Professor of Marketing, University of Southern California - Marshall School of Business, Department of Marketing

ROBIN WENSLEY
Professor of Marketing and Strategy, University of Warwick - Warwick Business School

RUSSELL WINER
Professor of Marketing, New York University - Department of Marketing

FLORIAN ZETTELMEYER
Assistant Professor, University of California, Berkeley - Marketing Group, National Bureau of Economic Research (NBER)

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