Give a brief description of the various factors that affect advertising budget decisions
What will be an ideal response?
1. Stage in the product life cycle — New products typically merit large advertising budgets to build awareness and to gain consumer trial. Established brands usually are supported with lower advertising budgets, measured as a ratio to sales.
2. Market share and consumer base — High-market-share brands usually require less advertising expenditure as a percentage of sales to maintain share. To build share by increasing market size requires larger expenditures.
3. Competition and clutter — In a market with a large number of competitors and high advertising spending, a brand must advertise more heavily to be heard. Even simple clutter from advertisements not directly competitive to the brand creates a
need for heavier advertising.
4. Advertising frequency — The number of repetitions needed to put the brand's message across to consumers has an obvious impact on the advertising budget.
5. Product substitutability — Brands in less-differentiated or commodity-like product classes (beer, soft drinks, banks, and airlines) require heavy advertising to establish a unique image.
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A. pragmatic. B. short term. C. medium term, except for family. D. long term.
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Answer the following statement true (T) or false (F)
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A. those actions or activities within a community that are unique or distinctly different from any other group. B. what would be considered unusual or unexpected, and even unacceptable, about the way people do things in a specific country. C. traditions among a group of people, a nation, or ethnicity that affect their purchase behaviors. D. actions or behaviors that are repeated over time and carry a specific meaning to a unique group, nationality, or ethnicity. E. what is considered normal and expected about the way people do things in a specific country.