A brand's advertising and promotion allocation strategy: The role of the manufacturer's relationship with distributors as moderated by relative market share

Results of this study suggest that the type of exchange relationship between a packaged-goods manufacturer and its distributors influences a manufacturer's brand allocation between the frequently opposing strategies of advertising and promotion. As exchange relationships become move relational, manufacturers increase their allocation to advertising. Conversely, as relationships become more discrete, manufacturers increase their allocation to promotion. Additionally, study results suggest that a brand's relative market share moderates the influence qi the exchange relationship type. Brands with low relative market share may experience greater opportunity for advertising in relational exchange and increased pressure for promotion indiscrete exchange. (C) 2000 Elsevier Science Inc. All rights reserved.