A Study on Advertising Strategy based on the Impact of a Business Reputation on the Market

Abstract

With the development of internet technology, the consumer market has also changed, and the company's sales model has also been updated with the individual needs of customers. The dual-channel dynamic control model based on the influence of business reputation studied in this paper is more complete and closer to reality than the traditional hybrid dual-channel model. This article discusses the problem of advertising investment in the dual-channel supply chain consisting of traditional retail channels and online electronic direct sales channels, and the influence of brand business reputation on market competition. It is concluded that both market competition and business reputation exist at the same time. Under the optimal advertising investment, further analysis of the changes in advertising investment is under the influence of different factors. The research results show that in a dual-channel supply chain, in addition to advertising, business reputation also has an impact on market competition. When the business reputation has a greater impact on the market share, the advertising investment on the brand should be increased, thereby increasing the brand's business reputation in a specific market and promoting the retailer's ability to occupy the market, and vice versa. The research results of this paper can provide a reference for the dynamic advertising investment decision of the dual-channel supply chain under the influence of business reputation. the advertising investment and influencing factors under competitive conditions. The research results show that: First of all, in the dual-channel supply chain, the optimal differentiation strategy of advertising is not only affected by market competition but also related to the intensity of the influence of business reputation on market competition. Secondly, when the retailer's market share in a certain market is smaller, its sales volume will be restricted. It should increase advertising investment in this market, increase the retailer's market share in this market, and increase the margin of the market. Benefits should be reduced on the contrary. Finally, when a brand's commercial reputation has a greater impact on the market's market share, the advertising investment for the brand should be increased, thereby increasing the brand's commercial reputation in a specific market and promoting the retailer's market share. Possession ability, on the contrary, should be reduced. The research results of this paper can provide a reference for the dynamic advertising investment decision of the dual-channel supply chain under the influence of business reputation.