ANALYSIS OF THE INFLUENCE OF ADVERTISING COSTS ON COMPANY INCOME

Abstract

The creation of business activities based on the concept of marketing represents the construction of an appropriate relationship between the effort invested and the achieved result. This means that the ability to achieve positive business activities is related to the management system of the company, the response of the target public and the achieved results. For this reason managers are constantly faced with the need to compare the achieved business results and the contribution of marketing activities. By obtaining and processing primary and secondary data, the impact of marketing itself is determined, that is, the justification of the marketing concept is checked. The importance and contribution of the marketing concept or individual marketing activities can be determined by analyzing the relationship between realized costs and key business performances. The research of marketing costs and effects expressed in selected parameters is a reliable basis for evaluating the level of acceptability of the marketing concept in the company's operations. The subject of research in this paper is the statistical-financial analysis of the impact of advertising costs on the total revenue of the company. Advertising costs represent costs incurred on the basis of a strategic plan in order to promote a company, that is, a specific product. How marketing costs affects total revenue is shown through the interdependence of costs and total revenue.