In this article we will discuss about the shape of the advertising cost curve. Incremental advertising costs if drawn as a curve will first decline, will be constant over some range of output and then will rise at an increasing rate. This is due to the operation of the economies of scale. Advertisement outlays may be in fixed proportions or [...]
In this article we will discuss about the effectiveness of advertisement and its evaluation. Advertisement is a costly affair, but very seldom serious attempts are made to judge how far it is effective, how many benefits the costs of advertisement yield, how the benefits, if any, are related to advertisement and so as. Till recently, the effectiveness of advertisement has [...]
The following points highlight the top five methods of determining an advertising budget listed by Joel Dean. The methods are: 1. The Percentage of Sales Approach 2. The All-You-Can Afford Approach 3. The Return on Investment Approach 4. The Objective and Task Approach 5. The Competitive Parity Approach. Method # 1. The Percentage of Sales Approach: In this method, the [...]