W. Duncan. Reekie's Advertising: Its Place in Political and Managerial Economics PDF

By W. Duncan. Reekie

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Additional info for Advertising: Its Place in Political and Managerial Economics

Example text

People's wants, both material and emotional, run far ahead of their basic needs for survival. The question takes on a more serious air if it implies that manufacturers rna ke consumers buy what they, the producers, want them to, and not what the consumers themselves really want. This is the stance taken, for example, by Packard. In The Hidden Persuaders, he writes: ... a good many of the people-manipulating activities of the persuaders raise profoundly disturbing questions about the kind of society they are seeking to build for us.

Synergy, a greater total response than the sum ofthe individual responses could come about if the strengths of one medium could be transferred to the other, and vice versa. For example, a person who normally ignores press advertising may be encouraged to study a press advert in detail if he had seen the same product advertised on TV the previous evening. A priori, there is no reason why this complementarity may not work in a negative direction also. In so far as the interaction is positive it wi II increase the convexity of the isoquants, thus a given budget line would be tangential to a higher isoquant than it would be without the interaction.

5. We will adapt this diagram specifically for marketing purposes. The isoquants represent the same level of sales response obtainable not only with differing media combinations, but also with different message designs. 0 1 ,0 2 and 0 3 represent three different design types. * *The isoquants in Fig. 4 are all implicitly 'envelope' isoquants for the relevant sales responses. 46 Advertising With a given budget Iine AA, the profit-maximising advertiser would select message design D 1 , and would combine his media in the proportions indicated at the point of tangency A 1 • If the costs of TV and press advertising altered, say, press became cheaper and TV more expensive, then the same budget could possibly buy the input combinations indicated by 88.

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