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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.

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Q: How does advertising lower the cost of sales?
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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 the effectiveness of advertising is measured?

Effectiveness of advertising can be measured in terms of sales volume of that product advertised.

Related questions

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.


Net Cost when purchasing a vehicle?

Car dealers must list "Plus sales tax" when advertising a lease. When advertising a sale they can write "Net Cost" but this is a dishonest use of the phrase. The definition of net cost is gross cost minus income received. There are still other costs such as tax, setup fees, destination, etc.