Specifying the Saturation Point of Advertising Budget Using Ideal Planning Model

Subject Areas : policy making

Fatemeh Khanzadi ¹ , Fereydoun Ohadi ²

1 - Master of Industrial Management, Islamic Azad University, Science and Research Branch, Tehran, Iran
2 - Assistant Professor, Department of Industrial Engineering, Faculty of Engineering, Islamic Azad University of Karaj, Alborz, Iran

Received: 2016-10-03 Accepted : 2016-10-03 Published : 2016-08-01

Keywords: Media, optimal, budget, costs, advertising,

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.