Originally posted by RGlasel In the 24 years that I've been a sales rep for one large manufacturer or another, I've heard lots of retailers and wholesalers tell this canard; in fact, I might have used it myself once or twice. If you are big enough to have millions invested in a product line, your pricing strategy isn't determined by the amount of advertising you buy. Sometimes there is an inverse relationship, because the customer perceives that advertising is used to convey more value than there really is, and the customer subconsciously discounts heavily advertised goods. One example is BMW which spends less than average on advertising, to support the perception of exclusivity.
A trade show targeted at consumers is an excuse for a sales event, where multiple vendors pool their resources to create publicity. Very few camera manufacturers sell directly to consumers, and Pentax has a very small presence with camera retailers in the U.S. It shouldn't be surprising that Pentax is not visible at this show.
Well, thank you so much for talking some sense on the subject of advertising. I created and ran an in house advertising agency for the leading U.S. manufacturer of specialty coiled aluminum sheet for manufacturing, so I speak with some authority. We were clients of an East Side Manhatten advertising agency previously.
How much insight does it really take to comprehend that your advertising budget is not a cost factor, as in: money lost you have to make up elsewhere. It is a PROFIT GENERATING investment... and product pricing depends on market demand, considered in light of one's production capacity, economies of scale, etc.
Local retailers, for instance, have said to me, "I tried advertising, and it didn't work." My response: "Advertising ALWAYS works -- If it didn't work for you, you were doing it wrong!" Not exactly surprising, since these are invariably people who didn't have any genuine plan in place and effectively lacked the intelligence and critical thinking skills to have a meaningful comprehension of their own state of ignorance. There is a reason you have pros. I have been flamed here a couple of times on economic matters by people plainly ignorant of fundamentals you'd get in any decent Economics 101 course as a freshman in college. I find the mixed emotions evoked by such needlessly hostile, aggressive, and incomprehending criticism (including what humor I can draw) a bit disconcerting, personally. It's a sign of the times, I guess: "Internet Expertise".
There's a reason that a company which sells... well, "soap"... spends billions on advertising. Notorious "sure things": Death... taxes... advertising (done competently). -- Fred