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Determining how much to Spend for Advertising

The following article will guide you about how will an advertising firm determine how much to spend for advertising. The purpose of advertising or selling cost is to shift the demand curve to the right, to increase demand for the product. In monopolistic competition the firm’s profits are not only a function of the level […]

Shape of the Advertising Cost Curve (With Diagram)

In this article we will discuss about the shape of the advertising cost curve. Incremental advertising costs if drawn as a curve will first decline, will be constant over some range of output and then will rise at an increasing rate. This is due to the operation of the economies of scale. Advertisement outlays may […]

Determining an Advertising Budget: 5 Methods

The following points highlight the top five methods of determining an advertising budget listed by Joel Dean. The methods are: 1. The Percentage of Sales Approach 2. The All-You-Can Afford Approach 3. The Return on Investment Approach 4. The Objective and Task Approach 5. The Competitive Parity Approach. Method # 1. The Percentage of Sales […]

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