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Unformatted text preview: Of course, marketing managers are likely to think positively about results that show the benefits from advertising extend past the current sales year. A skeptical view that is sometimes expressed by non-marketing managers is that the marketing department will spend any money it can get its hands on. Since it is hard to measure the effectiveness of advertising, firms spend more when it seems cheap because they have a lot of cash coming in from product sales, but cut back on advertising when times are tough and sales are down. From this perspective, high sales revenue is the cause of high advertising expenditures, not vice versa. Your assignment is to use the data in the Eviews workfile to analyze these competing views of the relation between sales and advertising for this company. In particular, provide an analysis of the efficacy of advertising for the companys owners....
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- Spring '10