Advertising; Its Place in Political and Managerial Economics by W. Duncan. Reekie

By W. Duncan. Reekie

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On the assumption that the relevant data can be obtained, the method has the advantage of simplicity. However, with the differing degrees and directions of corporate diversification, it seems unlikely that any one firm can identify itself completely with a group of firms all of whom are allegedly competing in precisely the same market. For example, a paint manufacturer mainly selling to the painting trade will require differing levels and styles of advertising from another firm selling primarily to the do-it-yourself market.

Four of the more common ones are described by joel Dean. {3) These are: (i) (ii} (iii) {iv} The percentage-of-sales approach. All-you-can-afford approach. Competitive-parity approach Objective-and-task approach. (i) The Percentage-of-Sales Approach Ease of decision taking is a major advantage of this approach. The advertising budget is set at a level equal to some predetermined percentage of past or anticipated sales. The added attraction of apparent safety is present in that sales receipts and advertising outlays tend to coincide.

1 shows a breakdown of total British advertising expenditure by medium. 2 per cent of total expenditure. Newspapers, both regional and national, were however, only slightly less important than TV. 0 per cent of the total. 1 will now be examined in a little more detail. Newspapers The principal characteristic of the newspaper is its ubiquity. Everyone has access to the press, and almost everyone will read, or at least see, a newspaper each day. This enables the advertiser to get widespread coverage of his product instantaneously.

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