Advertising and Promotions Questions

  • How large are the differences in our company’s A&P investments, as a percentage of sales, for each brand, market segment, and region or country?
  • Is there a clearly defined strategic rationale for these differences (or for the lack of differences)?
  • Are the differences in intensity and sensitivity of advertising and promotions among the various market segments and countries adequately acknowledged?
  • Are the differences in our competitive position (relative market share) properly translated into a maintenance level for the brand?
  • Have we made a clear choice among maintenance, harvest and growth approaches for each brand, segment, and region or country? Does this choice reflect the level of A&P investments?
  • How does our company decide on its total A&P budget for each brand, segment, region or country? Is the decision based on sound logic or does the process of negotiation result in incremental adjustments to the previous year’s budget?

To Spend or Not to Spend: A New Approach to Advertising and Promotions
by Emile Gostelie
Boston Consulting Group

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