Investigation the Effect of using Different form of Advertising on Success of Companies for Increasing Market Share (A Case Study: Manufacturer of Smart Homes and Offices of Tehran)

Abstract

An empirical investigation of the relationship between advertising, market share and firm profitability was carried out. Cross section analysis was used over 13 companies that produce smart homes and offices, for the year 2008 - 2012. Using the panel data and pooled models, this paper analyses the effect of different form of advertising on success of companies at increasing market share in manufacturer of smart homes and offices of Tehran. Most of the studies in this area indicate that in developed countries, this technology has a positive and meaningful effect on productivity and market power. For this reason, Author discussed and examined the relationship between different form of advertising and market share in manufacturer of smart homes and offices industries in Tehran. This paper finds that market share has a positive impact on firm profitability and market share. The results show the meaningful relationship between different form of advertising and market share and also the relationship between different form of advertising and decrease in marginal cost in these firms at the period.

Keywords: Advertising, Market share, Manufacturer of smart homes and offices, Panel data.