Cost Benefit Analysis Definition.
When the alternatives are estimated to provide the same benefit, the alternative with the lowest cost should be selected.Cost benefit analysis is the analysis of an opportunity to demonstrate the benefits in cost saving in order to recieve management commitment and support to implement.

Cost Benefit Analysis Justification

1.Hard Dollar Savings

Hard Dollar Savings include reductions or eliminations of existing expenses . Example - In context of media marketing when the Ad Agency(Rediffusion) incharge for creative execution for a client(Airtel) has to send the advertisements for publication (E.g-TOI) in dailies and magazines , instead of sending the hard copy through courier /post can directly mail the creative to the media house for publication

2 .Soft Dollar Savings-Soft Dollar savings are qualitative and loss tangible to calculate.For Example-A media Planning and buying agency(Madison) for its client (Airtel) buys airtime known as free commercial time (FCT) from channel colors ( A mass reach channel in India) .The agency buys airtime in bulk , but in future channel colors is not willing to offer large airtime , because the channel (colors) has better contract with any other media planning and buying agency(Percept).The agency (Madison) now no longer has contract for buying airtime in bulk from the channel (colors). The qualitative aspect is that the agency (Madison) does not have a better dealings/negotiations to buy airtime in future. The agency may lose the account in near future.