The True Value of A&P Spend

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    This Unit brought up, among other points, the costs related to Advertising and Promotions. One of the points raised was that advertising on tv, newspaper and radio could be comparatively less expensive than using other media. In my work in Exports, I have found that this is a traditional statement that examines the reach (cost per thousand or other measure) versus the cost of the ad. This was argued in the companies I worked at where the the focus was on advertising to the target market, which meant using specific rather than mass tools, unless we were trying to strategically increase our market share.

    The arguments centered around how to calculate the ROI, and using the ROI as the measure for whether the particular campaign spend was expensive or comparatively less expensive than using other media. So the mass media were used for advertising a promotion once we were trying to increase market share, but generally we tended to be specific and tailored our efforts to using media that proved to be the preferred media of our current users or our typical customers.

    SO we never looked at mass media as relatively less expensive if we could not gauge the effectiveness of the ad in reaping the desired results.

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