Marketing the new Tesla takes extensive research and time. Tesla has large teams of employees who focus primarily on their marketing efforts. Because the means of communication are transforming with the development of smartphones and other devices, marketing teams must constantly adapt their strategies to effectively market products to consumers. Marketing costs and budgets are outlined within Tesla’s financial statements and management must adhere to the guidelines described within the documents. Any costs associated with print ads, television ads, and social media marketing campaigns are categorized as marketing expenses.
Similarly, mutual funds are financial products that must be marketed to investors that have disposable income and desire to get into the market. Financial services companies and investment firms must strategically position their mutual funds in a way that is appealing to investors. Marketing expenses and fees associated with mutual funds are called 12b-1 fees. 12b-1 fees are just a unique way of saying marketing expenditures that are used to promote and sell mutual funds to the public. Depending on the marketing teams’ objectives, some mutual funds may have higher 12b-1 fees than others. The portfolio manager who manages the mutual fund is responsible for covering these expenses and ensuring that the fees aren’t out of control because the mutual fund incurs these costs.