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Advertising is an investment which generates sales revenue over time. The duration and amount of the revenue depends on the loyalty of customers, the frequency of purchase and competitive products. Companies often regard advertising costs as expenses incurred in a short-term context, although advertising has a cumulative effect. The distributed lag model can measure this cumulative effect. This method, based on an analysis of a company's past performance, can forecast advertising induced sales.

Although the product life cycle (PLC) concept has been the mainstay of marketing strategy for many years, its accuracy and empirical basis are both questionable. In many cases, products do not develop along the traditional stages. The possible variations are so unpredictable that the most effective system employs unique information systems for each product. Product class, product form, and brand are the three stages of PLC, however, the model has little validity for brand life cycles. An effective model predicts sales drops and rises, and it serves as an indicator of the short-term success of strategy. Market-communication models greatly improve product life code models because they quantitatively measure the influences on sales, evaluate different opinions, and provide advance warning signals.