Carryover Effects

Posted in Marketing and Strategy Terms, Total Reads: 1346
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Definition: Carryover Effects

The carryover effect of advertising states that time lag between the consumers being exposed to the advertisement and their response to the same advertisement. When a company launches a new product or service and advertises the same, there would be a pool of customers who would respond immediately but there would be another pool of potential customers who would notice the advertisement but purchase decision would take some time.


This is an example of carryover effect i.e. the impact of advertising on end sales would happen over a period of time. Due to this carryover effect, it is sometimes difficult for the business person to gauge the success of the marketing campaigns and its effect on the sales. If the company wait time is too long, then eventually the market forces, price levels etc. would have an impact on the sales which would further make the estimation of the success of marketing campaign more difficult.


The marketing quality reduces due to the carryover effect. It gives way to more carelessness. Also the changing market trends and emerging markets pose more difficulty n designing the advertising campaigns and give them timelines to create an impact in the minds of the target market.

 

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