Encyclopedia of Business & Finance, Second Edition (2 Volume by Burton S. Kaliski

By Burton S. Kaliski

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Extra info for Encyclopedia of Business & Finance, Second Edition (2 Volume Set)

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A customersustaining activity supports an individual or a particular grouping of customers, such as mailings or customer service. A product-sustaining activity supports an individual product or product line, such as product (re)design or (re)engineering. These last two types of activities are sometimes referred to as service-sustaining activities. Last, a facility-sustaining activity supports an entire facility, such as the actions of the manager of an entire plant, with an associated cost equal to the manager’s compensation package.

At this time, advertising agents were largely space brokers agents who solicited ads from businesses and then sold them to newspapers that had difficulty getting out-of-town advertising (Lane, King, & Russell, 2005).

ADVERTISING BUDGET Once an advertising objective has been selected, companies must then set an advertising budget for each product. Developing such a budget can be a difficult process because brand managers want to receive a large resource allocation to promote their products. Overall, the advertising budget should be established so as to be congruent with overall company objectives. Before establishing an advertising budget, companies must take into consideration other market factors, such as advertising frequency, competition and clutter, market share, product differentiation, and stage in the product life cycle.

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