Sunday, July 29, 2012

ADVERTISING DOES NOT INFLUENCE PRICE HIKES

ALTHOUGH ADVERTISING FOR LONG HAS BEEN THE FAVOURITE WHIPPING BOY OF ALL AND SUNDRY WHENEVER PRICES ARE RAISED, THERE IS NO SCIENTIFIC RELATION EVIDENCE IN THE PRICE AND ADVERTISING-SALES RATIO. ADVERTISING COSTS ARE NOT NET. IF THESE ARE ELIMINATED, OTHER MARKETING COSTS WOULD BE INCURRED TO REACH THAT NUMBER OF PEOPLE AND TO SELL TO SO MANY PEOPLE TO SO MANY MARKETS. IN MANY INSTANCES, THE SELLING JOB WOULD LESS EFFICIENT AT A MUCH HIGHER COST.

IMAGINE SELLING A TOOTHPASTE TO ENTIRE INDIA WITHOU TV, NEWSPAPERS OR RADIO. WHAT KIND OF NUMBERS WOULD WE BE LOOKING AT IN TERMS OF EMPLOYING SALESMEN TO REACH EVEN 10 MILLION PEOPLE ACROSS LENGHT AND BREADTH OF INDIA?

IMAGINE THE TIME IT WOULD TAKE, THE MONEY ONE WOULD REQUIRE TO TRAVEL TO THESE PEOPLE FOR REPEATED VISITS UNTIL SALES TAKE PLACE? WHEW!

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