Using the percent of sales method, an advertiser sets its budget at a certain percentage of current or forecasted sales. However, determining what percentage to use is not always clear. Many marketers look at industry averages and competitor spending for comparisons. Websites and trade publications publish data regarding industry averages to guide marketers in setting the percentage to use. Find industry advertising-to-sales ratio data. Why do some industries have higher advertising-to-sales ratios than others? Determine the advertising-to-sales ratios for two competing companies and compare them to the industry advertising-to-sales ratio found above. Why do you think there is a difference between competitors and the industry average?
Selective Demand Advertising
Advertising includes communicating with people regarding a product or any service or an idea to sell or promote them. Advertising attracts the consumer towards a specific brand or to a product of a brand which enables them to buy products from that company and hence the company can prosper. Advertising is important both for the company which is in the industry for a longer period of time and even for those who are just starting up with their business. These days it is found that not only the transmission of the messages of a particular brand is done through television or radio but also it is done on the social media platform. Particularly for homegrown brands, social media has become one of the most important platforms which promote the advertising of their products and attract consumer to demand the same. The strategy to have a good advertising background is important for marketing a particular company or a brand.
Primary Demand Advertising
This topic is significant in the professional exams for both undergraduate and graduate courses, especially for
Using the percent of sales method, an advertiser sets its budget at a certain percentage of current or forecasted sales. However, determining what percentage to use is not always clear. Many marketers look at industry averages and competitor spending for comparisons. Websites and trade publications publish data regarding industry averages to guide marketers in setting the percentage to use.
Find industry advertising-to-sales ratio data. Why do some industries have higher advertising-to-sales ratios than others?
Determine the advertising-to-sales ratios for two competing companies and compare them to the industry advertising-to-sales ratio found above. Why do you think there is a difference between competitors and the industry average?
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