Dictionary of Advertising, Marketing, and PR Terms. Part 26. Learn the meaning of the words - Elasticity of Demand, Advertising Effectiveness.
Elasticity of Demand - in marketing, the degree of change in one variable resulting from a small relative change in another variable, such as changes in demand for exported industrial goods due to changes in currency exchange rates or changes in demand resulting from price changes. Goods are considered less elastic if changes in prices have little impact on the demand for them.
Advertising Effectiveness - the degree of impact of advertising means on consumers in the interest of the manufacturer or intermediary. It is determined before and after the transmission of advertising messages. Determining the impact of advertising on sales results (economic efficiency) is done by relatively comparing advertising costs and the volume of product sales based on past performance. The accuracy of the latter method is not high, as many other factors besides advertising affect sales results.
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