Reminded Enterprise- Do not ignore the ads of the diminishing marginal benefit.doc

 PAGE \* MERGEFORMAT 10 Reminded Enterprise: Do not ignore the ads of the diminishing marginal benefit Where is the waste of advertising? No one seems to give a complete answer, but diminishing marginal benefit of advertising is certainly one of the reasons, and this point is often overlooked. Marginal benefit, is an economic concept. Refers to items that people need each additional unit of time can bring a sense of satisfaction! Marginal benefits are decreasing, that is required for each additional unit of goods, can bring satisfaction decrease. As people hungry to eat bread, if eaten steamed bread to eat 7, then the first one eat bread to the hunger mitigation effect is the largest, followed by decreasing effect of the first seven bread is the worst, there are already eight Sub-eat, and eat and eat at the borderline. Rather than talking about that joke: ‘Article 7 1 eat, eat bread, and Zaozhidaojiu eat it in front of the 6. ‘ The marginal effectiveness of advertising is diminishing. Perhaps accustomed to advertising effectiveness is to look more and more poor, many people think it is a ‘law’, have gradually accepted that a ‘law’. However, such ‘laws’ acceptance, stifle or prevent a number of people could make better sense of advertising effectiveness. Although, from a macroeconomic point of view, we have no way to change this ‘law’, but we can make the ads within a certain period of time, rebound or slow down the decline. In fact, there is diminishing marginal benefit of advertising are many cases, each case characteristics, performance, because there are different ad to ascertain the circumstances of diminishing marginal benefit, can play a greater advertising effect. Otherwise, the inevitable result should not be wasted. So under what circumstances the existence of such advertising effect of the diminishing marginal benefit it? In the author’s analysis, mainly in the following areas: 1, similar product advertising. In an emerging industry, advertising m