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§     The nine economic laws of advertising


In economically difficult times, companies are always in the context of cost
reduction and reduction in advertising budgets are discussed and decided.
There is no patent prescription for deciding how a company in stagnation
or decline phases should manage their market communications.

Some recommended uses the terms of quot;cyclicalquot; or quot;anti-cyclical quot; .
The advertising budget on the economic downturns and adapt. Or to do
the opposite - To go against and increase the marketing budget.

Economically most advantageous operation are companies which act
according the economic principles and laws of advertising.

    1. Advertising budgets are not spending, but investment in
       the market of a company.

    2. Advertising stimulates sales and stabilized; advertising
       reduction reduces these effects.

    3. Reduced advertising budgets usually save no money: The effect
       is the opposite: A competitive losses and therefore it is expensive.

    4. Advertising breaks are risky. They usually mark the beginning
       of the demolition of market share.

    5. The value of the media as an advertising medium depends on
       the business objectives.

    6. New products and brands without advertising have no chance.

    7. Price competition needs advertising competition.

    8. Advertising shrinkage also means shrinkage in customer relations.

    9. Reduction of advertising is mainly removal of market optimism
       and the lifeblood of entrepreneurs.


       Spokesman and author Mr Volker Nickel
       Central Association of German Advertising Industry (ZAW)
       10117 Berlin
       Germany

       www.zaw.de

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The Nine Economic Laws Of Advertising

  • 1. § The nine economic laws of advertising In economically difficult times, companies are always in the context of cost reduction and reduction in advertising budgets are discussed and decided. There is no patent prescription for deciding how a company in stagnation or decline phases should manage their market communications. Some recommended uses the terms of quot;cyclicalquot; or quot;anti-cyclical quot; . The advertising budget on the economic downturns and adapt. Or to do the opposite - To go against and increase the marketing budget. Economically most advantageous operation are companies which act according the economic principles and laws of advertising. 1. Advertising budgets are not spending, but investment in the market of a company. 2. Advertising stimulates sales and stabilized; advertising reduction reduces these effects. 3. Reduced advertising budgets usually save no money: The effect is the opposite: A competitive losses and therefore it is expensive. 4. Advertising breaks are risky. They usually mark the beginning of the demolition of market share. 5. The value of the media as an advertising medium depends on the business objectives. 6. New products and brands without advertising have no chance. 7. Price competition needs advertising competition. 8. Advertising shrinkage also means shrinkage in customer relations. 9. Reduction of advertising is mainly removal of market optimism and the lifeblood of entrepreneurs. Spokesman and author Mr Volker Nickel Central Association of German Advertising Industry (ZAW) 10117 Berlin Germany www.zaw.de