Re: Running Further with Internal Funds

["Anthony D'Costa" <dcosta@xxxxxxxxxxxxxxxx>]

But then is there a norm as to what the advertising budget should be?
Should there be a norm?  Is this not the classical unproductive
activity?  Just asking.

Anthony D'Costa
U of Washington

On Wed, 2 Mar 1994, Nathan Newman wrote:

>
>
> On Wed, 2 Mar 1994, Heather.L.Grob.1 wrote:
>
> > In response to Tom's question,
> >
> > I have no explanation for why shoe industries may need to generate internal
> > funds.  Maybe some pen-ller has?    Perhaps, if so, its for r and d, to
> > meet Nike's advertising strategy, to build plants in other countries,
>
> Nike doesn't build plants in other countries. They basically don't make
> shoes at all; they hire subcontractors and buy shoes from them.
>
> Nike is basically a marketing and distribution company, not a
> manufacturing company.  Advertising is mainly what they do, so it's
> hardly surprising that is a large part of their costs.
>
> > to meet demand for running shoes in other parts of the world (making up
> > transaction costs in order to gain a greater market share in other
> > countries?)?  Since I don't know the shoe industry it's all speculation
> > based on the assumption that these are homogenous goods.
> >
> > Gotta run!
> > In running pen-ller solidarity,
> > Heather Grob (Heather.L.Grob.1@xxxxxx).
>