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71) Though the ________ method of setting an advertising budget

Question : 71) Though the ________ method of setting an advertising budget : 1408440

 

71) Though the ________ method of setting an advertising budget is simple to use and helps management think about the relationships among promotion spending, selling price, and profit per unit, it wrongly views sales as the cause of promotion rather than the result.

A) percentage-of-sales

B) integrated

C) competitive-parity

D) objective-and-task

E) regression

72) Which of the following methods is used by companies to set their advertising budgets based on the industry average?

A) percentage-of-sales method

B) affordable method

C) competitive-parity method

D) objective-and-task method

E) regression method

73) Sam, the owner of a small company, learned that a competitor was planning to spend $150,000 on promotion in the next financial year. As soon as he learned this, Sam called his finance manager and said, "I want to spend $150,000 on promotion next year." In this case, which method of promotional budgeting is used by Sam?

A) the objective-and-task method

B) the percentage-of-sales method

C) the competitive-parity method

D) the bottom-up method

E) the pull-push method

74) Which of the following statements is most likely true regarding the competitive-parity method?

A) This method involves starting with total revenues, deducting operating expenses and capital outlays, and then devoting some portion of the remaining funds to advertising.

B) It is based on the availability of funds rather than on opportunities.

C) It wrongly views sales as the cause of promotion rather than as the result.

D) In this method, promotion budgets are set to match competitors' outlays.

E) This method involves setting the promotion budget at a certain percentage of current or forecasted sales.

75) Which of the following is the most logical budget-setting method?

A) percentage-of-sales method

B) affordable method

C) competitive-parity method

D) objective-and-task method

E) exponential smoothing method

76) Which budgeting method entails defining specific promotion goals, determining the necessary tasks, and estimating the costs to determine a promotion budget?

A) percentage-of-sales method

B) objective-and-task method

C) affordable method

D) exponential task method

E) competitive-parity method

77) Which of the following statements is most likely true regarding the objective-and-task method of budget-setting?

A) It forces management to spell out its assumptions about the relationship between the money spent and promotion results.

B) It is the simplest and least time consuming method to use.

C) It is the least logical budget-setting method.

D) It involves setting the promotion budget to match competitors' outlays.

E) It wrongly views sales as the cause of promotion rather than as the result.

78) Which of the following is most likely a shortcoming of advertising?

A) It is the most expensive promotion tool.

B) It cannot reach masses of geographically dispersed buyers.

C) It is impersonal and lacks the direct persuasiveness of company salespeople.

D) It cannot trigger quick sales.

E) It cannot be used to build up a long-term image for a product.

79) In most cases, what is the most expensive promotion tool?

A) advertising

B) personal selling

C) mass media

D) public relations

E) publicity

80) Which of the following promotional tools is the most effective in building up buyers' preferences, convictions, and actions?

A) mass-market advertising

B) personal selling

C) segmented advertising

D) sales promotion

E) public relations

 

 

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