AA065

65.

The following appeared in a memorandum from the vice president of Road Food, an international chain of fast-food restaurants.

“This past year, we spent almost as much on advertising as did our main competitor, Street Eats, which has fewer restaurants than we do. Although it appeared at first that our advertising agency had created a campaign along the lines we suggested, in fact our total profits were lower than those of Street Eats. In order to motivate our advertising agency to perform better, we should start basing the amount that we pay it on how much total profit we make each year.”

总利润低是因为广告商工作不好造成的。

竞争者盈利不是因为广告。

any more？

同意好小孩，练练手，写一下

As the vice president has mentioned, the Rood Food has more restaurants than its main competitor, Street Eats, but its expenses on advertising last year were as much as that of Street Eats. Thus, it is easy to conclude that Rood Food made a lower advertising investment per restaurant than does Street Eats.

The profitablility is determined not only by sales but also by the cost. The profitability can not be improved unless the sales outweigh the costs.

1。给的广告费一样多，不代表效果一样：店多分散效果，广告商水平不一样；

2。效果一样好，不代表收益一样多：收益取决与多方面，原料，员工工资；

3。比SE收益少，不代表经营不好，两者不完全类比。

4。与收益挂钩的广告费未必能刺激广告商，可能反效果。