Introduction Advertising is often referred to as above the line expenditure, a term which is

1700 WordsApr 23, 20197 Pages
Introduction Advertising is often referred to as above the line expenditure, a term which is derived from the historical way where advertising expenditure was treated in marketing budgets. Main media expenditure was shown above the line because it represented actual expenditure, as opposed to sales promotion which was shown below the line because much of the cost of such items came from a reduction in revenue, e.g price cuts. Most advertisements run on behalf of a commercial organization will be placed by the agency, who buys the space and pay the media owners. The agency then receives a commission from the media owners, but charges the full cost to the advertiser (Robbin, 2003). Advertisement as a promotion mix tool covers more than…show more content…
Faulu envisions to be a market leader through diversified products, wider distribution networks, strategic partnerships and affordable pricing due to reduced costs and cheap deposits from its banking business (Faulu Kenya web link). Much of the achievements of Faulu Kenya can be attributed to the intensive advertising campaigns undertaken by the company through different advertising media which will be dealt with in details.e.g television, National newspapers, consumer magazines, social media and other media outlets. Advertising has been important to the organization as it has created awareness of the existence of Faulu’s product and also a sense of urgency to consumers by informing them on sales and offers available. Advertising also helps businesses in keeping up with the competition in the market and acts as a form of sales promotion method (Faulu Kenya web link). Literature Review: Identification of the key aspects of the business literature (e.g. service quality) to be underpins the study. This review should briefly cover the main ideas and business practice that will be considered. It should locate a sample of the some of the main sources and identify key critical issues that might arise. – Word Guide 750 – 1000. Introduction

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