Evaluating the Role of Advertising

Abstract

This paper presents a procedure useful in assessing the probability of an individual marketer profitably employing advertising to stimulate demand for products or services. The procedure is based on the classic factors which affect the ability of advertising to stimulate demand originally identified by Neil Borden (The Economics Effects of Advertising). This managerial approach provides strategic insights into the extent to which an individual firm should invest in advertising. In addition, the results of the procedure — an advertising opportunity score — provide the strategist with guidance in establishing advertising objectives and determining the portion of the total selling task which should be assigned to advertising.

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