Advertising and Promotion Investment: What Is the Right Level?

Olan D. Forker

No 121547, Staff Papers from Cornell University, Department of Applied Economics and Management

Abstract: Agricultural economists in both the United States and Canada have been trying to answer this complicated question for over 12 years. Although there is no simple answer t researchers generally agree that the "right level" of advertising investment is a function of the promotion program's objective. The actual level of advertising investment in 1987 totaled $490 million in 22 dairyproducing countries. The United States t Canada t Australia t and the United Kingdom have similar levels of promotion investment per unit of milk production ($0.12 to $0.17 per hundredweight). A review of economic studies "indicates commodity advertising investment in the U.S. is probably less than optimum at its current level of around $145 million.

Keywords: Marketing (search for similar items in EconPapers)
Pages: 22
Date: 1990-12
References: View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:cudasp:121547

DOI: 10.22004/ag.econ.121547

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