Calculation Of The Efficiency Of The Advertising Company
Demand generation has been divided into four stages: familiarity with the goods and interest, recognition and destination of the goods, familiarity with the subjective characteristics of the supply and, finally, the procurement decision regime. The economic efficiency of the advertising campaign is calculated on the basis of the following assumptions: all potential consumers are at a zero stage of demand formation, i.e. product and company unknown to anyone; the Murphy Act is in force: " It is understandable that there will be no one who understands anything " .
- acquaintance when the consumer only finds out about the existence of a product, acquainted with its name and has an interest.
The second stage is to recognize when the consumer is familiar with the objective properties of the product, its purpose.
The third stage is confidence, knowledge of the subjective nature of the proposal. As we work on the concept of needs, where the main subjective properties are, final positioning is under way.
The fourth stage is the decision-making regime (PPP), where the procurement decision is taken.
Economic calculation efficiency of advertising The campaign will be conducted on the worst option based on the following assumptions:
- All potential consumers are at the zero stage of demand generation, i.e. product and company unknown to anyone;
Empirically, it is clear that, at each stage of demand generation, consumers ' peaks, which is a border on the economic efficiency of the advertising campaign, can be distinguished. I mean, if there's more to it, you're gonna have to spend more on advertising than you get.
Table 1. Loss consumers at the stages of demand generation.