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Because, First off the product is new and not that popular. Ads will raise its popularity and then the customers keep buying, buying, buying which will heighten there income. Then they lower it too make it for affordable bringing in ever more customers cause now they can buy the product. and after they made alot of money, other people are gonna start buying it because they wanna follow others and fit in. They raise there prices so that when the friends go to buy it, they have no clue it costed less before and the people will buy the product. Then they cycle becomes. Bought - Broke - Brought - Broke because many people wanna stay in the moment rather than out of fashion and rejected by others. rarely it does lower sales cost if the salesman are generous and keep the prices low.
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How does advertising lower the cost of sales?
Obviously, advertising lowers the cost of sales by contributing to a global market that in turn can reduce the auxiliary number of post-consumer acquisitions.
Why company wants advertising?
Companies use advertising because it improves sales and through sales profit.
What is the average cost of an advertising campaign?
It cost on the lower higher average of £507 500, including billboards and all that stuff that is all i know now but i can get back to you.
Some critics contend that the use of the percentage-of-sales budgeting technique is illogical?
Sales is a function of advertising. Advertising should not be a function of sales. If a business has a bad quarter and the sales are lower, then according to this technique the amount of advertising/promo budget should drop as well. However, in reality the company might in fact need more advertising to raise brand awareness (or whatever the advertising goals are) to get the company out of the slump. The concept applies the other way as well. Studies have shown after a certain amount of advertising released the returns begin to diminish and have negative affects, even if the advertising campaign was successful initially. Therefore, a company should use an Objective and Task Approach (ideal method) or if need be a Competitive Parity Approach (match the competition).
Where can someone find more information about advertising sales for their company?
To find companies that provide advertising sales one could check their local phone book. The second option would be to check the internet to find companies that will do the advertising sales for your company.
How does advertising lower the cost of sales?
Obviously, advertising lowers the cost of sales by contributing to a global market that in turn can reduce the auxiliary number of post-consumer acquisitions.
What is McDonalds advertising cost?
In 2012 McDonalds advertising expenses were about $901 million.
Is Advertising fixed costs?
If advertising expense is fixed and has no concern with level of sales then it Is fixed but if it is changed with the change in level of sales then It is variable cost.
How is a benefit cost ratio computed?
divide the benefit by amount spent to achieve it. Take an ad campaign, for example. The cost is what is spent on the advertising. The benefit is the increase in sales due to the advertising.
Why are Lexus sales rising?
There are many reasons why Lexus sales are rising including their updated designs, lower prices, better deals, and increased advertising.
What is a selling expense?
A selling expense is an expenditure made in support of the sales effort. This might include advertising, cost of transportation for sales personnel, printing of sales and technical brochures, etc.
Why company wants advertising?
Companies use advertising because it improves sales and through sales profit.
What are the relationship between advertising and media?
Advertising is how companies promote their products and services. Without the media, the advertisements would not reach as many people, which would lead to lower sales for the majority of companies.
Which one of the following is a product cost indirect labor office salaries sales person's salaries or advertising costs?
Indirect labor
How does Nike affect the company's sales of its products?
promotion, ADVERTISING, mass advertising,
Why did reducing tariffs lead to an increase in trade?
Free trade leads to lower prices and greater sales.
What is the average cost of an advertising campaign?
It cost on the lower higher average of £507 500, including billboards and all that stuff that is all i know now but i can get back to you.
