Explain marginal approach to ad-budget, Marketing Management

Assignment Help:

Marginal Approach to Ad-budget: - In this schema advertisement budget is decided on the basis of marginal costs and marginal revenue of advertising. Marginal cost here signifies increment in advertising spending. Marginal revenue signifies increment revenue because of increase in advertising spending. Acc to this approach the firm must increase advertising spending if marginal revenue is more than marginal cost. The marginal cost and marginal revenue must be equal be equal in determining the optimum level of advertising. Any further spending subsequent to the level at which incremental revenue will be unprofitable.


Related Discussions:- Explain marginal approach to ad-budget

Define branding and state its objectives, Question: "One of the key obj...

Question: "One of the key objectives of destination branding is to evoke such type of instant recognition that demarcates the destination from a crowded marketplace offering t

Case let, How are Indian customers visiting Shoppers’ stop any different fr...

How are Indian customers visiting Shoppers’ stop any different from customers of developed western countries?

Draw a supply curve, Suppose the US and Mexico both produce semiconductors ...

Suppose the US and Mexico both produce semiconductors and auto parts and the US has a comparative advantage in semiconductors while Mexico has a comparative advantage in auto parts

Steps involved in designing a channel system, Steps involved in designing a...

Steps involved in designing a channel system: Formulating the channel objective: Formulating the channel objectives is the first step in designing a channel system. The objecti

Basic of making effective presentations, Question 1: "A crisis can hit ...

Question 1: "A crisis can hit an institution anytime. It is essential therefore to plan and manage a crisis intelligently and forthrightly." Discuss this statement from a PR pe

Case of the quality crusader, Q: What types of common cause variation and ...

Q: What types of common cause variation and special cause variation are evident in this case? Q: Of Deming's "5 Deadly Diseases," please describe how each of the following di

Define the strategy development phase in brief, Define the Strategy Develop...

Define the Strategy Development Phase in brief. Phase Strategy Development Phase: If you already know your competitors and target market, you are capable to start creatin

Test marketing - new product development, Test Marketing The  seventh ...

Test Marketing The  seventh  step  is  test  marketing that  is the  stage  at  which  the  manufacture  and  marketing programs are introduced into more accurate marketing se

Jum jack flash, Do you think Jack is equipped with the managerial skills ne...

Do you think Jack is equipped with the managerial skills needed to head up a team that develops strategies for adapting existing company products into new products for sales in d

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd