Firm B aims to find out the optimal amount of advertising expense for the coming

Question

Firm B aims to find out the optimal amount of advertising expense for the coming selling season. To analyze the impact of its own advertising expense on the sales, the manager of firm B asked the marketing research team to collect the data of its own sales and advertising expense in the past. Note that in the market there are a few competitors. The sales manager of firm B also realize s that the competitors’ advertising strategy may also h ave an effect on firm B’s sales . To find out how firm B’s sales depend on the competitors’ advertising expenses, the marketing research team collects the data of these expenses and total sales in the market in the past. Please find all data in the excel f ile.

Can you find out the impacts of both advertising expenses from firm B itself and the competitors on firm B’s performance? How will firm B and other parties decide their optimal advertising strategies?

Explanation / Answer

From the market research, it is requiring to interacting with the customers to know about the different products that they are looking to meet their all needs. To do and maintain a better sales process it requires knowing about the customer's demand and requirements of the products that they are seeking for. The theory of competitiveness starts from here it basically makes the difference in the service and quality standards of the products items which are influencing the customers in almost a unique way.

The expense of advertising by firm B in the past were quite large and it needs to be minimized in a certain way that it become balance and it should patch up with the profit more than any sort of promotion for organizational needs. Advertising is obviously necessary to do marketing and to grab the potential customers. The strategies are required to be formulated for best advertising by the organizational side and the cost of promotions for the advertisements must be quite optimum as compared to past expense in advertisements. The strategies are needed to be fixed by firm B to keep an optimum flow of cost in the advertisement so that the company should not lose into its production and earn maximum by accepting the correct approaches of business perspectives in its process.   

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