Author Topic: How important is Cumulative Advertising  (Read 6033 times)

halfstep

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How important is Cumulative Advertising
« on: January 21, 2011, 06:04:34 PM »
I read from glo-bus participant guide that the number of retailer carrying our brands also decides on CUMULATIVE advertising, how important is this number in gaining market share? when do i hit diminishing return?

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WinBusinessStrategyGameTips

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Re: How important is Cumulative Advertising
« Reply #1 on: January 21, 2011, 11:05:35 PM »
Quite important, cumulative advertising is only one part of # of retailers. The other is carrying a desirable brand. Every PQ level has it's own area to where retailers peak out.

AS for cumulative advertising specifically, a good healthy company will actually raise advertising year by year. Remember that the company's production should be getting bigger and thus more advertising is required. Not that there is diminishing returns exactly, as advertising may not grow retailers later on, but it keeps maintaining the number of retailers you already have.
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