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© Copyright 2002-2003. All rights reserved.
Page 62
How To Investigate Any Business Opportunity
ing expenditures went to each medium?
·
Newspapers?
·
Trade papers?
·
Magazines - kinds of magazines?
·
Broadcast media - radio, television?
·
Other forms of advertising?
The question is whether the media being used are a reasonable choice considering the amount that can
be spent.
3. What changes have been made in the use of advertising media? Is the company relying more
on one form of advertising than in the past? If so, why the change?
No one advertising medium is best for all types of businesses. There is sometimes a tendency, however,
to switch media too often, without giving any medium enough time to show its real value.
4. How does the cycle of advertising vary in relation to seasonal sales fluctuations? As sales in-
crease, do advertising costs increase in about the same proportion? What is the pattern?
Dollar advertising expenditures usually rise as sales volume rises but not as fast percentage-wise. When
sales drop, there is a tendency to spend either too much or too little in relation to normal seasonal
changes, depending on the urgency felt by the advertiser.
5. If advertising allowances are available from vendors or sources of supply, is the company tak-
ing advantage of them? What kinds are available?
Advertising allowances, if properly used, make it possible to do more advertising with less money. An
alert advertiser will take advantage of all advertising allowances he feels to be reasonable and useful to
his business.
6. Is the company taking advantage of other available promotional services such as newspaper
mats and so on?
Many suppliers offer advertising services that help improve the quality of the advertising, reduce the
cost, or perhaps both. The company's use of all advertising and promotional helps should be analyzed.
7. What percent of sales was spent on advertising last year? For the past 10 years? Is this in-
creasing? Decreasing?
It is important to know not only changes in the pattern of advertising expenditures, but the relation be-
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