New PDF release: Advertising: Its Place in Political and Managerial Economics

By W. Duncan. Reekie

ISBN-10: 1349020842

ISBN-13: 9781349020843

ISBN-10: 1349020869

ISBN-13: 9781349020867

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Extra resources for Advertising: Its Place in Political and Managerial Economics

Sample text

Probably the truth is that advertising can, and does, do both. Certainly advertisements influence consumers. Nevertheless it could be argued that if a product proves unsatisfactory it will not be purchased again, no matter how appealing is its advertising. In the final analysis, advertising can only sell goods which at least approach what the consumer 'really wants'. Then again it could be argued that advertising encourages consumption of goods which in the short run the consumer 'wants' but which in the long term may be positively harmful.

It has the obvious advantages of sight, sound and colour right in the living-rooms of potential customers. The Independent TV networks are regionally based, which enables the advertiser to be geographically selective if he wishes. Flexibility by time of presentation is also possible. The advertiser can aim at the mass market between the hours of 8 and 10 in the evening; he can aim at teenagers during the broadcast hours of pop music programmes; or at men during the Saturday afternoon sports shows.

4. An isoquont mop showing differences in soles response from differing media combinations Any sales-response isoquant which lies above and to the right of another has a higher value than that isoquant. This reflects the assumption that if expenditure on, say, TV is held steady, then an increase in press expenditure will result in an increased, not a decreased sales response. The isoquants slope down from left to right, reflecting the fact that if advertising in one medium is reduced, then to maintain an identical overall sales response, all other things equal, expenditure on the other medium must be increased.

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Advertising: Its Place in Political and Managerial Economics by W. Duncan. Reekie


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