Getting the Most Out of Advertisement and Promotion

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1.What is the case study about, and is it a good idea to test market?
The case study “Getting the Most out of Advertising and Promotion”, is about testing the outcome of an advertisement and promotion. Before advertisements and promotions were not something one would be able collect statistics on television promotions or the effect of advertisement, all was only a matter of faith. Marketing departments might have collected voluminous statistics on television show and coupon redemption, and once they collected that information, they measure everything to compare the costs of marketing with total sales. This procedure did not take care of the most important measurement. What a business owner wants to know, what is most important to them is the incremental sales of the product over and above those that would have happened without the advertisement and promotion. This case study is about the new kind of marketing data. It is data correlated information on actual consumer purchases. This information is, “available from universal product code scanners used in supermarkets and drugstores”. (Magid, M. Abraham & Leonard M. Lodish , 1990 p. 12) This information is linked to the information on the kind of television advertising those consumers receive or the frequency and type of promotion events they see. With this source of data, managers began to notice the potential it has to create great opportunities for new marketing productivity. In order for the managers to take advantage of this, they needed to develop new strategic marketing plans. Before all of this was available to marketers, there was no true measurement for advertisement and promotion. Without having a true measurement, “marketing managers had to rely on many false assumptions”. (Magid, M. Abraham & Leonard M. Lodish, 1990 p. 13) they were assumptions that were unexamined, for example, “those who believed advertising works also tend to assume that in all cases, more of it is better than less.” (p. 13)...
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