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Marketing and Advertisers

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1. Why should marketers consider advertising as a long-term commitment?

2. Do you believe there is an over-focus on advertising and promotion? Is effective promotion more important than product price?

3. Vakratsas and Ambler suggest that advertising elasticities are small and decrease during the product life cycle but Lloyd states that advertising elasticities feed into shareholder value. Are these viewpoints contradictory?

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https://brainmass.com/business/the-product-lifecycle/marketing-advertisers-236086

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1. Why should marketers consider advertising as a long-term commitment?

This has two factors.

When advertising is seen as a long-term commitment by the public, the public will also commit. When a product is not promoted with a long-term commitment, the public could and most likely will forget about the product. Out of sight, out of mind.

Companies who have long term advertising commitments are

Budweiser
Coke
Pepsi
McDonalds

These businesses have excessive advertising budgets and promote their products daily worldwide. Their long term commitment to advertising has truly paid off significantly.

When marketers lock-in a long term advertising agreement, ...

Solution Summary

The solution addresses:

1. Why should marketers consider advertising as a long-term commitment?

2. Do you believe there is an over-focus on advertising and promotion? Is effective promotion more important than product price?

3. Vakratsas and Ambler suggest that advertising elasticities are small and decrease during the product life cycle but Lloyd states that advertising elasticities feed into shareholder value. Are these viewpoints contradictory?

$2.19