Price impact: The advertising premium
Charles YoungAmeritest
Marketing mix models treat price as a variable, independent of advertising when, in fact, high-quality advertising supports premium prices.
Price is at the centre of the concept of brand. “If you can't charge a premium price for your product,” wrote the late management guru Peter Drucker, “then you don't have a brand!” The ability to charge premium prices is the reason why businesses that own brands are generally more profitable than businesses that do not.
In the Wild West days of capitalism, the first brands were created as markers of quality to...