How should a theory of the firm incorporate advertising? : (thinking about the economic role of advertising in the firm)

Lah, Marko (author)

This article discusses the role of advertising expenses within the economic theory of the firm. In marketing and advertising textbooks advertising expenses are, from the perspective of the economic theory of the firm, viewed too narrowly. In contrast, standard economics textbooks start with the unrealistic perfect competition firm where advertising is not needed, while for the imperfect competition firm they extend the profit maximisation motive and concentrate on the optimisation of advertising expenses. The paper favours a more realistic, investment approach to advertising expenses which highlights problems such as the determination of advertising budgets in different firms in the network depending of their position, and the role marketing/advertising managers play within the chain of principal-agent relations in the firm. These topics are fundaments of the transaction cost theory of the firm which does not (sufficiently) explore advertising as an important tool for reducing transaction costs. The investment and transaction cost approach to the role of the firmʼs advertising are complementary.

• Language: English
• Work type: Not categorized
• Typology: 1.01 - Original Scientific Article
• Organization: FDV - Faculty of Social Sciences
• Year: 2011
• Number of pages: Str. 1584-1597, 1711
• Numbering: Letn. 48, št. 6
• PID: 20.500.12556/RUL-74543
• UDC: 659.1:330.821.5
• ISSN on article: 0040-3598
• COBISS.SI-ID: 30885725
• Publication date in RUL: 21.12.2015

Record is a part of a journal

• Title: Teorija in praksa : revija za družbena vprašanja
• Shortened title: Teor. praksa
• Publisher: Fakulteta za družbene vede
• ISSN: 0040-3598
• COBISS.SI-ID: 763652

Secondary language

• Language: Slovenian

Abstract

Prispevek se ukvarja z vlogo oglaševalskih izdatkov v ekonomski teoriji podjetja. V učbenikih trženja in oglaševanja so oglaševalski izdatki, izhajajoč iz ekonomske teorije podjetja, obravnavani (pre)ozko. Po drugi strani pa standardni učbeniki ekonomije začenjajo obravnavo oglaševanja z nerealnim modelom popolno konkurenčnega podjetja, kjer oglaševanje sploh ni potrebno, nato pa razširi motiv maksimizacije dobička na določitev (optimizacijo) oglaševalskih izdatkov. V prispevku zagovarjamo investicijski pristop k izdatkom za oglaševanje kot realističen, ki pa nadalje odpira vprašanja določanja oglaševalskega proračuna posameznih podjetij znotraj omrežja podjetij glede na njihov položaj, vlogo marketinških in oglaševalskih menedžerjev v verigi odnosov med principali in agenti. Prav to pa so osrednje točke teorije transakcijskih stroškov, ki pa ne obravnava v zadostni meri oglaševanje kot način zniževanja transakcijskih stroškov. Slednji, transakcijski pristop k oglaševanju je komplementaren investicijskemu videnju oglaševanja.

• Keywords: podjetja