Question

Give opinion:

In this case, I do not think that putting more money in the advertisement would be the best idea for GE because of the profit they will get should Maytag enter the market. Maytag may probably not enter the market and invest 12 M in the advertisement to gain a profit of 1M and a relatively small market share. Even if Maytag enters the market, they would only have a small share of it, which means that GE will still be a major player. It is also important to consider the case of a false threat. GE's talk about increasing advertisement expenditure by 2M might be enough threat to keep Maytag out of the game. Initially, I thought it would be a good strategy to increase the advertisement expenditure by 2M to help increase market share. However, I realized that it would create a worst-case scenario for GE because of the additional profit loss. Increasing the advertisement cost might not deter Maytag from entering the market.

Answer 1

We do agree that increasing the advertisement cost might not deter Maytag from entering the market , however the GE must increasing its advertisement budget to retain the market share.

- As far as defending your marketing budget, it's imperative to characterize each new pattern you plan on subsidizing and precisely how it will profit the business. Feature the most recent trends, characterize how they will assist you with arriving at your intended interest group, and clarify how that will at that point mean more deals.

- Without this breakdown, you risk leaving your manager confounded concerning why and how this will function.

- It's anything but difficult to state something worked truly well, yet without the numbers to demonstrate it, you will struggle selling it. Probably the most effortless approaches to do so is by gathering and examining information from your key presentation markers (KPIs).

- Before you go through any cash, you'll have to characterize your KPIs. Ideally, this is something you've just been doing, as the information from your KPIs will help legitimize your current budget. KPIs ought to line up with business objectives, yet they do will in general contrast starting with one business then onto the next. Nonetheless, they ought to consistently give away from of additions, regardless of whether that be from deals, transformations, or client esteem. There are some standard KPIs that help you feature the marketing return on investment

- On the off chance that you attempt to persuade your supervisor this is the main budget that will work, it will be a hard sell. Individuals like to feel like things are open for conversation, can develop, and can be changed if things aren't working out.

- Thus, leaving the budget fairly open-finished can regularly work in support of yourself. In addition to the fact that this creates an open greeting for discourse, yet you may have the option to leave the gathering with more cash to play with. Be available to proposals, welcome inquiries and concerns, and be adaptable—you'll have a greatly improved possibility of getting your budget affirmed in the event that you hear everybody plainly than if you're stopped to thoughts.