DEFINITION of 'Incremental Marketing'

A gradual increase in advertising expenditures and product exposure over time. Incremental marketing requires a company to break up a long-term marketing plan into smaller components and assign milestones to each component that have to be met before further marketing funds are committed. The success of each of the components determines if the marketing campaign continues or is halted.

BREAKING DOWN 'Incremental Marketing'

Incremental marketing as an overall strategy is helpful for companies that are not ready to jump into a large scale marketing campaign. It allows smaller companies to deploy funds as they become available and only if the company sees results from each step. It also is a useful strategy when promoting a product or service that is unfamliar to the consumer because of the greater risk of consumers rejecting the good.

RELATED TERMS
  1. Incremental Cost

    The encompassing change that a company experiences within its ...
  2. Incremental Tax

    A tax that increases in increments based on income levels. Incremental ...
  3. Incremental Cost Of Capital

    A term used in capital budgeting, the incremental cost of capital ...
  4. Incremental Cash Flow

    The additional operating cash flow that an organization receives ...
  5. Long Run Incremental Cost - LRIC

    Forward-looking incremental costs that can be accounted for by ...
  6. Incremental Analysis

    A decision-making technique used in business to determine the ...
Related Articles
  1. Investing

    Understanding Incremental Cash Flow

    Incremental cash flow is the additional operating cash flow an organization expects to generate from a new project.
  2. Investing

    What is Incremental Cost?

    Incremental cost is the added cost of manufacturing one more unit.
  3. Insights

    Tracking Money Flow In The DJ Industrial Average (AAPL, MSFT)

    Tracking Dow money flow allows market players to identify the index components most likely to produce reliable profits.
  4. Small Business

    Why Direct Marketing Is Used

    Businesses of all sizes can practice direct marketing. Companies with less brand recognition and smaller marketing budgets use it most.
  5. Small Business

    Bye, Mad Men: How the Net Is Changing Advertising (FB, TWTR)

    The Internet and digital media are changing the way companies advertise and market themselves. More targeted, varied and faster advertising is possible.
  6. Small Business

    Advertising, Crocodiles And Moats

    Memorable advertising is a brick in the fortress that keeps competitors at bay.
  7. Investing

    Analyst Ratings Report: Breaking Down the S&P 500 Index (SWN, WFM)

    Learn about Wall Street analysts' 2015 forecasts for the S&P 500 Index, as well as the effects of individual components and sectors on the benchmark's performance.
  8. Small Business

    Understanding Marketing

    Marketing includes all of the activities of a company associated with buying and selling a product or service.
  9. Small Business

    Trends And Growth In The Digital Advertising Industry

    The rapidly expanding digital advertising industry is leading a shift towards content and demanding forced innovation.
  10. Small Business

    5 Steps To A Small Business Marketing Plan

    Here are some tips for marketing your small business.
RELATED FAQS
  1. What are the key differences between marketing and advertising?

    Understanding the role advertising plays in the marketing mix will help business owners define their promotional strategies ... Read Answer >>
  2. Are Social Security payments included in the US GDP calculation?

    Understand how gross domestic product is calculated and whether or not transfer payments such as Social Security are included ... Read Answer >>
  3. How should a company budget for capital expenditures?

    Learn the difference between capital expenditures and operational expenses, and discover the importance of budgeting for ... Read Answer >>
  4. What is the difference between capital investment decision and current asset decision?

    Learn how capital investment decisions are long-term funding decisions, while current asset decisions are short-term funding ... Read Answer >>
  5. What is the difference between a capital expenditure and a revenue expenditure?

    Understand the difference between a company's capital expenditures and revenue expenditures, and how each expense appears ... Read Answer >>
  6. What is evergreen funding?

    Evergreen funding is a term used to describe the incremental addition of money into a business. Before a business is started ... Read Answer >>
Hot Definitions
  1. Magna Cum Laude

    An academic level of distinction used by educational institutions to signify an academic degree which was received "with ...
  2. Cover Letter

    A written document submitted with a job application explaining the applicant's credentials and interest in the open position. ...
  3. 403(b) Plan

    A retirement plan for certain employees of public schools, tax-exempt organizations and certain ministers. Generally, retirement ...
  4. Master Of Business Administration - MBA

    A graduate degree achieved at a university or college that provides theoretical and practical training to help graduates ...
  5. Liquidity Event

    An event that allows initial investors in a company to cash out some or all of their ownership shares and is considered an ...
  6. Job Market

    A market in which employers search for employees and employees search for jobs. The job market is not a physical place as ...
Trading Center