The Usefulness of Marketing Strategies in a Regulated Market: Evidence from the Spanish Tobacco Market

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dc.contributor.authorAlmeida, Alejandro
dc.contributor.authorGaliano, Aida
dc.contributor.authorGolpe, Antonio A.
dc.contributor.authorMartín Álvarez, Juan Manuel
dc.contributor.otherEkonomická fakultacs
dc.date.accessioned2021-06-04T08:54:58Z
dc.date.available2021-06-04T08:54:58Z
dc.description.abstractThis paper outlines possible useful marketing strategies for companies to develop in a regulated market. The empirical analysis aims to highlight whether companies can use marketing strategies to create competitive advantages and scale positions in sales leadership once regulation policies are introduced. To this end, we apply two econometric approaches to sales variables for 138 best-selling cigarette brands: the Bass Model (1969) to estimate the parameters that determine the way clients adopt, and the methodology proposed by Hartigan and Wong (1979) for a further cluster analysis that groups brands. The empirical results suggest that restrictions on demand introduced to the Spanish tobacco market during the years 2005 and 2006, have generated a new scenario in which innovation parameters have no effect on the process of adoption. Therefore, the imitation coefficient is the parameter which makes discrimination between brands possible, which demonstrates the existence of heterogeneity among brands based only on recommendation. The results show the inability of direct marketing strategies to create advantages and scale positions in sales leadership after the introduction of regulation policies, however companies have other marketing options such as imitation among clients and these have proven to be effective since imitation shows heterogeneous behaviour among brands across the diffusion process. This has implications that should be taken into account in markets which are on the verge of being regulated, specifically the modification of marketing strategies if the intention is to lead and scale position in a regulated market. In particular, in the case of Spain, policymakers must acknowledge that the measures implemented in law 28/2005 have had an effect on marketing strategies by cancelling, in practical terms, the diffusion of brands based on innovation and homogenizing the diffusion process based on direct marketing.en
dc.formattext
dc.identifier.doi10.15240/tul/001/2021-2-011
dc.identifier.eissn2336-5604
dc.identifier.issn1212-3609
dc.identifier.urihttps://dspace.tul.cz/handle/15240/160026
dc.language.isoen
dc.publisherTechnická Univerzita v Libercics
dc.publisherTechnical university of Liberec, Czech Republicen
dc.publisher.abbreviationTUL
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dc.relation.ispartofEkonomie a Managementcs
dc.relation.ispartofEconomics and Managementen
dc.relation.isrefereedtrue
dc.rightsCC BY-NC
dc.subjectmarketing strategiesen
dc.subjecttobacco marketen
dc.subjectregulated marketen
dc.subjectdiffusion processen
dc.subjectSpainen
dc.subject.classificationL53
dc.subject.classificationL66
dc.subject.classificationM31
dc.subject.classificationM38
dc.titleThe Usefulness of Marketing Strategies in a Regulated Market: Evidence from the Spanish Tobacco Marketen
dc.typeArticleen
local.accessopen
local.citation.epage188
local.citation.spage171
local.facultyFaculty of Economics
local.fulltextyes
local.relation.abbreviationE+Mcs
local.relation.abbreviationE&Men
local.relation.issue2
local.relation.volume24
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