Which of the following is not a deciding factor for the Advertising Budget out of the given options?
Competitor’s Advertising Policy
The advertising (promotion) budget is set by one of a small number of standard methods, so the question asks us to spot the factor that is not a basis for deciding it.
The recognised methods of setting the advertising budget are the affordable method (spend what the firm can afford), the percentage-of-sales method (a fixed percentage of turnover), the competitive-parity method (match what competitors spend) and the objective-and-task method (budget the amount needed to achieve defined communication objectives). Each of these ties the budget to sales, competitors or communication goals.
The number of employees in the firm is not a basis for the advertising budget. How much to spend on advertising is driven by the market - by sales, rivals' spending and the objectives to be achieved - and has no logical connection to the size of the workforce. A firm does not raise its ad budget simply because it employs more people.
So competitive parity, a fixed percentage of turnover and the objective-and-task approach are all genuine deciding factors, while the number of employees is not.
Hence the factor that is not a deciding factor for the advertising budget is the number of employees in the firm.
Similar Questions
The major advantage of the direct mail marketing is :
On which one of the following, the corporate advertising concentrates ?
For the following two statements indicate the correct code :
Statement - I : Advertising is any paid form of personal presentation and promotion of ideas, goods, or services by an identified sponsor.
Statement - II : Sales promotion consists of most long-term incentive tools, designed to stimulate greater purchase of particular products or services by consumers or the trade.
Code :
Match the items of List - I with the items of List - II and select the correct code of matching :
List - I (Advertising Agencies) List - II (Clients) (a) Ogilvy and Mather Ltd (i) HDFC (b) JWT Hindustan Thompson Associates (ii) Coca-Cola (c) Mudra Communications (iii) Vodafone (d) McCann- Erikson India Ltd (iv) Nestle Code :
The major advantage of the direct mail marketing is:
Statement-I: In developing advertising programme marketing managers must always start by identifying the target market and buyer motives.
Statement-II: A company may run multiple ad campaigns at the same time, each emphasizing different aspects of its brand and service.
Indicate the correct code matching the items in List - I with those in List - II as follows:
List - I List - II a. Competitive parity in advertising i. Variations in advertising b. Promotional elasticity of product ii. Advertising scheduling c. Optimal promotion mix iii. Advertising expenditure d. Pulsing advertising iv. Marginal equivalence of advertising media outlay Use of mail, telephone and other non-personal contact tools to communicate with, or solicit a response from, specific customers and prospects is called:
According to the ‘two-step flow’ concept, messages should be targeted to
The attempt to build and/or maintain a good “corporate image” is referred to as
Important Questions from Promotion decisions
Which of the following will fall under the grievances relating to promotion category?
A. Supersession
B. Increments
C. Acting promotions
D. Seniority
E. Pay fixation
Choose the most appropriate answer from the options given below:
- ________ is a marketing term for any design to prompt an immediate response or encourage an immediate sale.
- Emotional appeal is one of the types of advertising appeals, based on three ideas, namely
A. Rational appeals generally go unnoticed
B. Consumers watch all ads
C. It can capture attention and foster an attachment
D. Consumers ignore most ads
E. Rational appeal generally gets noticed
Choose the correct answer from the options given below - Assertion (A): Movie stars and sporting heroes are popularly used as Brand ambassadors.
Reason (R) : Attractive communicators (sources) are more effective in persuading for change than unattractive ones.
Codes : Advertising method in which a commercial is broadcast simultaneously on several radio stations and/or television channels is known as
