Learning and implication of advertising elasticity of demand

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A relatively small law firm in Birmingham had averaged revenues of $75,000 per month and had spent $2,000 per month on television advertising. For 3 months, the firm conducted an experiment by spending $5,000 per month to determine if the increased promotion would lead to higher revenues that could justify that even of ongoing promotional effort. Monthly sales revenues rose to $85,000. The lawyers and marketing consultant consider that no other factor caused any increase in revenue.

Suppose that you are a marketing manager for the law firm referred to in the previous question. Five a one paragraph explanation to the law firm's partners of the learning and implications of the advertising elasticity of demand calculated in the previous question.

Reference no: EM132298342

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