Generally Accepted Accounting Principles and Net Income

As Kodak is introducing Funtime to target the fast-growing Economy brands market and since it will be available only in off-seasons and in limited quantity, it should be supported by advertising. Kodak Gold Plus being the flagship brand will receive 60% of the dollar advertisement support. As Royal Gold has a larger profit margin ($0.96 per unit), it will receive 30% of the dollar advertisement support. The remaining (10%) of the dollar advertisement will be used for supporting Funtime. The distribution of the marketing budget can be justified from the break–even analysis given in next section.

The following allocation of advertising campaign budget was used to estimate number of new policies sold:

In this case we will determine the optimal budget for Blue Mountain Coffee. Their current advertising budget is 8m a year. However, by using the adbudg model we will see if this is the appropriate amount to spend on a yearly basis or if there should be an increased budget.

The biggest challenge that they face as a company is they do not have the room the increase expenditure by such a vast amount. Currently there is $3,675,000 in promotional dollars allocated as follows; sales and administration expense (995,000), cooperative advertising programs with retailers (1,650,000), consumer advertising (562,000) and trade promotion (467,000). adding the $225,000 increase in consumer advertising will not allow the 5% of expected sales for total promo expenditures. John Bott, the vice president of sales disagreed with the budget allocation and noted that sales expenses and administration cost were projected to be $65,000 in 2008. This led him to believe that an additional sales representative would be needed to service company accounts because 50 were being added. Therefore he estimated this addition would cost at least $70,000 including salary and expenses in 2008. Bott also stated that “That's about $135,000 in additional sales expense that have to be added to our promotional budget for 2008”

Beginning with advertising, promotional, and selling expenses, these have totaled to be $250,696, $273,629, and $244,213 in 2014, 2015, and 2016, in thousands respectively. There are many components included within this genre of expenses. The fixed costs would encompass media advertising, sales and marketing expenses, as well as salary and benefit expenses. When it comes to directly categorizing advertising, knowing which stage the company is in regards to budgeting or accruing the expense throughout the year depends on whether it is fixed or variable. Having a

Total Sales Dollars (for covering each incremental dollar of advertising) = Absolute increase in dollar sales / Advertising expense = $500,000 / $150,000 = $3.33

I would put Porsche Winter Equipment sale promotion advertisement on three different newspapers for a 12-week campaign so that to make more people watching Porsche advertisement every week. Then, 24,000 direct mails will be sent to the current Porsche owners. As drivers usually have a habit of listening to the radio, I plan to choose 14 rotators to play Porsche’s advertisement. Because the mid-high income people are the Porsche’s target users, who would have the habit of reading magazines, such as luxury car, real estate, tourism, the economist and business management, I decide to put Porsche’s advertisement on five different magazines. In addition, outdoor wallboard and online advertisement would be effective to attract more potential buyer. Therefore, the total advertisement fee is $379,940; and I think this marketing plan and strategy is acceptable and reasonable.

The $15,000 allocated marketing budget allows for a one week run in the business section, and a one week run in the entertainment section, with $971 remaining. Advertising in newspapers is the best way to reach the older demographic as they are less likely to be involved in social networks.

Spends 3% of net sales on advertising and sales promotion efforts. 55% of advertising and sales promotion dollars are allocated to cooperative advertising programs with retail accounts.

1. The VP of Advertising Alex, believes that a direct infusion of $350,000 into advertising efforts will increase awareness by 30% in the do-it-yourselfers market. He also would like to reach 15 of the surrounding counties with television commercials.

According to Forbes magazine, 31.1% of Oscars viewers were more likely to buy a brand after seeing a commercial during the program, as opposed to just 6.9% of super bowl viewers. When describing why, Forbes explains that the larger female audience is the main cause. Last February, ABC charged $1.95 million and boasted the largest number of viewers since 2000 with 43.7 million people. That adds up to about 22.6 viewers per advertising dollar. While the viewers per advertising daughter is less than that of the super bowl, the rate is more affordable for smaller companies who are not as well established as

The company can improve its profits by cutting down its overhead costs and administrative expenses.

Our base price for a 30 second spot is £549. This price is cheaper than almost any other production company out there. For this low cost you will get the following: A digital commercial with a film look that separates it from the majority of local advertising, Scripting, Editing, Storyboarding, and Directing are all included. We handle everything, eliminating headaches.

1. The advertising cost is high for this new strategy. The business need to spend money and efforts on promoting the kid-focus facilities by using TV, radio, brochure, etc., these advertising tools are all need high capital investment.