Question

Topic: Advertising/PR

Adequate Promotional Investment

Posted by Anonymous on 2/23/2005 at 12:40 PM ET 250 Points
While I have investigated some theoretical approaches towards promotional mix (advertising, BTL, PR, etc.) investment, I would like to know if there is a body of evidence that tells how much is usually invested per industrial sector and what is the usual pay back period expected. If there is information about domestic and foreign practices, much better.
Is there any documented difference addressing new products vs. existing products?
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RESPONSES

  • Posted by koen.h.pauwels on 2/23/2005 at 2:51 PM Accepted
    Let me take your first and last question (I am sure the others will get answered by colleagues):
    1) the major theoretical approach on allocation are the Dorfman-Steiner (1954) conditions, which have been applied to marketing by eg UCLA professor Mike Hanssens
    2) The difference between advertising effectiveness for new vs existing products is indeed strong and consistent (new products ad effectiveness is several times larger than that of existing products) Wharton professor Lodish and colleagues focused on this in their 1995 and other articles on single-source Behavior Scan experiments.
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