You are correct in that bigger market share is going to mean larger advertising budgets but it is also true that price can also be driven by a larger percent of budget by advertising if that is successful in driving up the perceived value or coolness factor. Since I'm familiar with the shoe industry I'll use Nike for an example. They spend a larger percent, compared to their cost of goods, then some of the other brands, they also have created a brand that allows them to sell at a higher margin to cover this cost. In the case of camera for Pentax to offer all these added features for a comparable price means. Over advertising if done correctly can also increase the perceived value and as a result allow you to create a higher margin; Applel would be the poster boy for this.
1) Pentax must be more efficient in production than Nikon and Canon and as a result have a lower cost of good sold. Not likely because because larger sales (i.e. Canon) most often results in lower production costs. OR
2) Pentax must have similar production costs but less advertising & sales cost per unit and that is passed on to the consumer.
I would suggest it is the later in this case. If Pentax gears up to expand their distribution channel in hopes that the cost of that will increase market share then their prices my creep up for some period of time.
In any case your comment about the trade shows is spot on. There is no need to have a big presence there is you don't have any customers at the show.
Originally posted by RGlasel In the 24 years that I've been a sales rep for one large manufacturer or another, I've heard lots of retailers and wholesalers tell this canard; in fact, I might have used it myself once or twice. If you are big enough to have millions invested in a product line, your pricing strategy isn't determined by the amount of advertising you buy. Sometimes there is an inverse relationship, because the customer perceives that advertising is used to convey more value than there really is, and the customer subconsciously discounts heavily advertised goods. One example is BMW which spends less than average on advertising, to support the perception of exclusivity.
A trade show targeted at consumers is an excuse for a sales event, where multiple vendors pool their resources to create publicity. Very few camera manufacturers sell directly to consumers, and Pentax has a very small presence with camera retailers in the U.S. It shouldn't be surprising that Pentax is not visible at this show.