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Balance between costs and revenue for advertising

1. What is the balance between advertising costs and revenue gained for the advertising?
2. How do I analyze the impact of different forms of advertising or marketing strategies for a landscape business?
3. Why or why not conduct business internationally?

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MEASURING IMPACT OF ADVERTISING

Advertising is one form of marketing communication. It is used by a marketer to disseminate information about the company, its new products, changes in its existing products or other circumstances about the company and the brand. The bottom line is to either maintain existing customers, encourage existing customers to buy more of the company's products or to encourage others to purchase the company's products and services.

Balance between advertising costs and revenue gained for the advertising

Advertising requires cost or expenditure to the company. The company is willing to spend more in return to additional revenues and consequently, additional profits, increase in market share, and improvement in the company's marketing position in the industry.

There is said to be a balance between advertising cost and revenue gained for the advertising when the marginal or addition expenditure in advertisement is equal to the additional or marginal revenue obtained. What was spent as an additional expenditure due to advertisement must be compensated by at least the same level of increase in revenue or sales.

Analyzing the impact of different forms of advertising or marketing strategies for a landscape ...

Solution Summary

The balances between costs and revenue for advertising.

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