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Fusion for ProfitHow Marketing and Finance Can Work Together to Create Value$
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Sharan Jagpal and Shireen Jagpal

Print publication date: 2008

Print ISBN-13: 9780195371055

Published to Oxford Scholarship Online: September 2008

DOI: 10.1093/acprof:oso/9780195371055.001.0001

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Determining the Advertising Budget

Determining the Advertising Budget

Chapter:
(p.265) 13 Determining the Advertising Budget
Source:
Fusion for Profit
Author(s):

Sharan Jagpal (Contributor Webpage)

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780195371055.003.0013

This chapter shows how the firm should coordinate its advertising decisions with the other elements of the marketing mix such as price and promotion, especially when demand is uncertain. It shows how the firm should vary its advertising spending over the product life cycle and the business cycle. In particular, it shows how marketing-finance fusion allows the firm to maximize its long-run performance under uncertainty.

Keywords:   certainty-equivalent demand, certainty-equivalent profit, demand uncertainty, demand-pull strategy, demand-push strategy, long-run profit, marketing-finance fusion, marketing mix coordination, promotion elasticity, risk-adjusted elasticity

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