What are pros and cons of eliminating the advertising budget

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Reference no: EM13830429

"Looking ahead to next year, the future looks very bleak indeed." The speaker was Sonia Rice, president of Consumer Goods, Inc. "Revenues are projected to be down by 7.3% and our costs (especially fuel and raw materials) are increasing monthly. Achieving break-even is going to be a real challenge. We're definitely going to have to cut our costs."

One suggestion, made by a member of the board, was that the company eliminate its television and print advertising for the coming year. "That would save us about $14 million and would probably keep us in the black," he said.

What are the pros and cons of eliminating the advertising budget next year in the hope of restoring it the following year?

Reference no: EM13830429

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