Path: utzoo!attcan!uunet!cs.utexas.edu!swrinde!zaphod.mps.ohio-state.edu!wuarchive!udel!mmdf
From: BARRETT@owl.ecil.iastate.edu (Marc Barrett)
Newsgroups: comp.sys.amiga
Subject: Commodore & Advertizing
Message-ID: <13629@baldrick.udel.EDU>
Date: 12 Mar 90 13:48:13 GMT
Sender: mmdf@udel.EDU
Lines: 50


   I guess I am going to have to post this message again.  I
posted it once, but the message did not get across.  After you
have read this message, please feel free to frame away to your
heart's content.

   Commodore does not spend enough on advertizing.  This has
been clearly established.  The general oppinion is that Commodore
cannot afford to advertize.  This is totally wrong.  If Commodore
cannot afford to advertize, Commodore cannot afford to be in
business.  Period.

   To say that Commodore cannot afford to advertize is like saying
that Commodore cannot afford to sell a product because they cannot
afford to make it.  Advertizing is as much a part of any product as
the product itself.  Advertizing is an expense, but if it is done
correctly it can result in an increase in revenues many times more
than the cost of the advertizing itself.

   Take a case study of the Gilette company.  Overall, this company is
like Commodore, getting most of it's revenues overseas.  Gilette takes
in less than 1/5 of the total word-wide revenues that Commodore takes
in, yet they advertize about 100 times more than Commodore advertizes.
Gilette spends over 1/3 of their TOTAL REVENUES (not total profits!)
on advertizing.  Commodore spends less than 2% of their total revenues
on advertizing.  Something is obviously wrong here, and I don't
think it is with the Gilette company.  

   Commodore is fully capable of spending $100 Million (or more) a
year on advertizing, even in the U.S. alone.  If they did, they would
go into debt for a very short time, but the debt would be made-up for
very quickly by drastically increased revenues.  Advertizing
is cyclical, and any money spent on advertizing comes right back
again -- if the advertizing is done well.

   Commodore has never had a serious long-term advertizing campaign
for the Amiga.  They have wasted several years in not advertizing.
In order to make up for this, Commodore must spend a lot of money
on advertizing, to make up for all those wasted years when they did
not advertize.  This will require a lot of money, but it shouldn't
be viewed as money down the drain.  The money will come back again
in the form of increased revenues if the advertizing was done well.

   Like I said, go ahead and turn your flamers to FULL!!  Try your
best to disprove all this, I am waiting.  The theory is sound, and
anyone who thinks not shows that they know absolutely nothing about
business.