There are instances where business people wonder whether the advertising that they have employed in their firms is enough to attain the expected change and result in the target market. For most experts, the campaign adopted for the promotion of a particular product is not always effective for them to see the desired outcome. According to Adams (2015), marketing campaigns are repetitive and continuous, and in most instances, the work is mainly guessed. As such, ascertaining the amount of advertising needed is sometimes difficult.
Figure 1: The S-Shaped Curve
Adams (2015), explains that the curve reveals the spending trend and the rate at which the effectiveness of the campaign increases or reduces. The other method of determining if the marketing will be efficient is the application of the Return on marketing investment, also referred to as ROMI. This technique includes some calculations that involve considerations of rebates, promotions as well as phone calls made. The output is then determined by also considering the number of new clients, traffic to the company website and the overall growth in sales after the campaign.
After reviewing these methods of assessing the efficiency of the advertisements, the company should be able to determine whether they can save more money by reducing the total amount spent on the campaigns since the excess is not providing any positive response. On the other hand, it can opt to increase its spending of the analysis reveals that there is a need. By adding the amount to be spent on the advertising campaigns, the firm can reach its threshold.
References
Adams, I. (2015). Am I Spending Enough on Advertising? OptimizationGroup. Retrieved from http://blog.optimizationgroup.com/am-i-spending-enough-on-advertising
