Path: utzoo!attcan!uunet!cs.utexas.edu!sun-barr!rutgers!cunixf.cc.columbia.edu!cunixb.cc.columbia.edu!es1 From: es1@cunixb.cc.columbia.edu (Ethan Solomita) Newsgroups: comp.sys.amiga Subject: Re: For all you who want more advertizing Message-ID: <1990Oct20.055220.16833@cunixf.cc.columbia.edu> Date: 20 Oct 90 05:52:20 GMT References: <34005@nigel.ee.udel.edu> Sender: news@cunixf.cc.columbia.edu (The Daily News) Organization: Columbia University Lines: 45 In article <34005@nigel.ee.udel.edu> BARRETT@owl.ecil.iastate.edu (Marc Barrett) writes: > >In Message <1990Oct19.051510.15213@cunixf.cc.columbia.edu> Ethan Solomita > writes: > >> There is one thing which many people are either >>forgetting and not realizing. Every dollar which Commodore spends >>on their advertising budget is taking a dollar away from some >>other important division, such as improving the O/S, etc. Also, >>the advertising money could be not-spent and thus lower our >>prices. > > This is true, but very misleading. Advertizing is the very best form >of spending, because it directly results in increased sales, and thus >more revenues. If Commodore were to only spend money on R&D, support, >and manufacturing, their sales would go to zero, and they would not have >any more money to spend on R&D, support, and manufacturing. Whereas if >Commodore would spend more money on advertizing, they would get more >revenues, and thus have more money to spend on advertizing, R&D, support, >and manufacturing. > Not really misleading. You obviously can't spend everything on marketing nor nothing on marketing. There is some balance in the middle. I agree with your position that Commodore's past history of treating the Amiga like a game machine in terms of no R&D/ads is coming back to haunt them. This does not mean that Commodore should lag behind in R&D. Commodore, as you often state is being caught up with very rapidly in price/performance. If we cut R&D things get worse. Also, WHAT do you cut? A 32-bit chip set? Unix? WB3.0? Compugraphic fonts? How about cutting developer tool development? In the end it'll hurt no matter where it comes from. Commodore is spending about 2/3 of its expenditures (not including material) on marketing/ads. If Commodore spent as much as Apple spends on marketing, the impact on R&D would be MORE than enormous. > > -MB- -- Ethan Ethan Solomita: es1@cunixb.cc.columbia.edu GorbachevAwards++; free (SovietUnion); IndependentRepublics += 15;