Advertising Budgeting And Geographic Allocation a Decision Calculus Approach
Advertising Budgeting And Geographic Allocation a Decision Calculus Approach
Glen L Urban
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) In order to allow for completeness, the two indices are included in the equation so that the manager can make changes to reflect future conditions that might be different from the past. EFFNAT is an index which can be used to change the Page 13 effectiveness of national media expenditure relative to past national media and RIMPCT is an index which can be used to change the impact of local expen- diture relative to national. The indices might also be used to reflect seasonal media characterist...ics. Weighted advertising is the independent variable in the model and is linked to the sales as shown in Figure One. In this structure, the sales that result from an advertising change are the original forecast times a response function index derived from Figure One. The function will have a value of one at the budget level corresponding to the reference sales forecast and other values for alternate weighted advertising levels. A general function is used to relate weighted advertising and sales.
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