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

Task of management team responsible for marketing, Task of management team ...

Task of management team responsible for marketing communications Main task facing the management team responsible for marketing communications is to decide following: 1.  w

Evaluate the concept of the product life cycle, Question 1: Evaluate th...

Question 1: Evaluate the concept of the "product life cycle" (PLC) as a strategic management tool. Use examples to show how components of the marketing mix alter and change in

Explain the Cognitive response - marketing communications, Definition conce...

Definition concerns the cognitive response This refers to outcomes of the communication process, and is a measure of whether a communication event has been successful. Audience

Caselet, Should video game companies continue to alter their products to in...

Should video game companies continue to alter their products to include other functions, such as e-mail

Compute average stock, The following ratios have been compiled relating to ...

The following ratios have been compiled relating to Prince Corporation for the year ended 31st December 2009 together with comparative figures of the average industry. Addi

Explain about the consumer movement in marketing activities, Explain about ...

Explain about the consumer movement in marketing activities. Consumer movement: Avarious collection of independent peoples, groups and organizations seeking to defend the

Case study, #Should video game companies continue to alter their products t...

#Should video game companies continue to alter their products to include other functions such as email? Shouldvideo_game_companies_continue_to_alter_their_products_to_include_othe

Price and promotion, Price       The big sales will come from the ice c...

Price       The big sales will come from the ice creams and the diet cake following the representatives prices RM2 for a single scoop of ice cream, RM3 for a double scoop( excl

New product development, New Product Development Organizations have to...

New Product Development Organizations have to develop new services and products. A company must be good at making new products. It also ought to manage them in the face of mod

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