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Your Marketing Investment
Part Eleven

by Mark Levit

Prior installments in the Partners & Levit Marketing Budget Library have included  establishing your marketing investment, the most common budgeting exercise, competitive position and market environment, new product activity, market growth, capacity utilization, budgeting for low ticket items, budgeting for the lower percentage of a customer’s total purchases, budgeting considerations and your brand’s characteristics, the price-performance relationship and pricing relative to your competitors’ pricing.

In this month’s installment, we’ll discuss “your pricing relative to your product’s quality.

BUDGET DICTUM 8: High quality products require higher marketing investments.

Partners & Levit research shows evidence of a strong relationship between relative product quality and levels of marketing. This is a difficult area to sort out in terms of cause and effect. Superior products typically carry a premium price; inferior ones, a discounted price. Further, market leaders typically enjoy a high perceived quality of their product lines. Hence it could be misleading to say that quality, by itself, drives marketing investments upwards.

If you’d like to discuss the budgeting cycle or how to plan for
it, contact our Managing Partner, Mark Levit, at 212.696.1200 now.

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