Does Markerting over price goods?
Many people hold that marketing is expensive and causes products to be overpriced. Do u agree or disagree with the statement
- NCLv 71 decade agoFavorite Answer
It depends. Marketing definitely costs money. Good marketing, however, makes it possible to sell (and thus produce) in large quantities, taking full advantage of economies of scale. The combined effect of marketing costs and economies of scale on the cost and price of the finished good could be either upward or downward...
- Matt MLv 51 decade ago
Marketing is an expense of any business just like salaries, raw materials, etc. in almost all cases the marketing expenses are so small compared to the other expenses that by marketing the product you are probably not going to affect the price. Bear in mind that prices and costs/expenses are 2 different things. Prices are determined by the market while costs are based on the producers decisions and transactions. If you didn't have marketing for your product then no one would ever buy it so to say all marketing is expensive is completely false.Source(s): I am an accountant with an MBA
- CLv 71 decade ago
You can't sell what people don't see.
How you budget your advertising with a new product will make it or break it.