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Your Marketing Investment
Part Twelve

by Mark Levit

Earlier in this series, we’ve addresses 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, pricing relative to your competitors’ pricing, high quality products and premium product positioning..

This month we’ll cover “budgeting related to high pricing and high value.

BUDGET DICTUM 10: Businesses with high relative product quality, which provide high value to the customer through low relative prices can invest less on marketing.

There is obviously a trade-off between pricing and marketing investment. We see that marketers that pursue a high value strategy can invest less on marketing than a business, which has a goal of maximum price realization. Which strategy is best? That depends on the long-term objectives of the business and the price elasticity, which exists in a particular market.

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.

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