07 Advertising and Promotion - thousands of dollars, but...

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Purpose of promotion - increase demand - change elasticity (loyalty): determines whether sales revenue will grow or shrink if you change prices; you want to make it more inelastic if you increase price (therefore a higher price won't lead to an decrease quantity demanded), which leads to increased sales revenue Procter and Gamble spend the most on advertising Promotional mix - see graphic in book, covers all aspects of promotional mix - advertising: 30 second ads during peak times in television shows can cost hundreds of
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Unformatted text preview: thousands of dollars, but many people watch it during this time (i.e. grey's anatomy and superbowl: 2.5 million dollars for 30 second spot) TV advertising: prime time television declines, but charged more for advertising spots Newspaper readers are dropping in general as well, not good for newspaper advertisers Magazine sales are dropping too Internet use is growing, although only a small portion of the revenue Digital use in general is growing as well: cell phones, computers, high speed internet, mp3 player, PDA...
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