Abstract:
The goal of the current study is to determine the optimal level of advertising beyond which advertising expenditure will not be justified by revenues. To achieve the goal first different types of media were rated by experts as to the degree of their importance. Then data ware collected by interviewing the managers and reviewing different media resources. The collected data were then analyzed using the ideal planning model. The results indicated that the best media for advertising is TV and that companies should consider the target market characteristics, product type and life cycle, analysis of advertising costs, available budget and finally, after summing up all these factors, select the best media for advertising. Considering all the above-mentioned factors will enable companies to increase their profit by means of ads.
Machine summary:
409- 418 Journal of Industrial Strategic Management Aug. 2016, Vol. 1, No. 2, 43-50 Islamic Azad University, Firoozkooh Branch Specifying the Saturation Point of Advertising Budget Using Ideal Planning Model Fatemeh Khanzadi Master of Industrial Management, Islamic Azad University, Science and Research Branch, Tehran, Iran Dr. Fereydoun Ohadi Assistant Professor, Department of Industrial Engineering, Faculty of Engineering, Islamic Azad University of Karaj, Alborz, Iran Email: tiva_66@yahoo.
The results indicated that the best media for advertising is TV and that companies should consider the target market characteristics, product type and life cycle, analysis of advertising costs, available budget and finally, after summing up all these factors, select the best media for advertising.
Keywords: budget, advertising, media, optimal, costs Introduction Today, because of increased consumer demand and due to the advances in technology various solutions have been created to increase consumers' awareness about the product they need.
Saturation point means the point up to which increase in the ad budget will generate results; but once the market for a product or service is saturated, no matter how much a company spends on advertising, it will not produce enough added sales to justify the cost.
The results of their research indicated that advertising on the one hand is important way to promote sales and increase customer awareness and on the other hand, it requires huge costs.
Then, using the ideal planning model the optimal level of advertising was determined.
Second, the optimal level of advertising for each product was analyzed and determined using three approaches: optimistic, realistic, and pessimistic.