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 :
Match the items of the List-I with that of the List-II and suggest the correct code from the following:
List-I List-II i. Competitive Parity a. Variations in Advertising ii. Promotional Elasticity of Market b. Level advertising iii. Optimal promotional mix c. Advertising expenditure decision iv. Contra-cycle advertising d. Marginal equivalency of media outlay Codes:
Match the items of List-I with the items of List-II and select the code of correct matching:
List-I (Medium of Mass Communication) List-II (Limitations) a. Outdoor i. Relative high cost; increasing consumer resistance b. Yellow pages ii. Over production could lead to runaway costs c. Brochures iii. High competition; long ad purchase lead time; creative limitations d. Telephone iv. Limited audience selectivity; creative limitations Codes:
Statement-I: Direct marketing is a non-interactive marketing system.
Statement-II: Direct marketing uses one or more media to effect a measurable response or transaction at any location.
Select the correct code:
Use of mail, telephone and other non-personal contact tools to communicate with, or solicit a response from, specific customers and prospects is called:
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 Given below are two statements : one is labelled as Assertion (A) and the other is labelled as Reason (R).
Assertion (A) : Generally, the customers consider the sales force as the representative of the company.
Reason (R) : Often, the company’s sale force works directly with the customers.
In the light of the above statements, choose the most appropriate answer from the options given below :
Identify the correct sequence of stages in the sales process :
A. Initial contact
B. Gather the sales Lead
C. Meeting objections and concerns
D. Qualifying the Lead
E. Sales presentation
Choose the correct answer from the options given below :
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
The assumptions of rational decision making are:
(A) Preferences are not clear
(B) Preferences are not constant and stable
(C) Problem is clear and unambiguous
(D) No time or cost constraint exist
(E) Final choice will maximize pay off
Choose the correct answer from the options below:
Which one of the following is closest to the nature of decision making?
Match List - I with List - II :
List – I
(Decision making Bias)
List – II
(Explanation)
a
Anchoring Bias
i
Represents a case of selective perception
b
Escalation of commitment
ii
Refers to our staying with a decision even if there is clear evidence it’s wrong
c
Confirmation Bias
iii
Tendency to believe falsely, after the outcome is known
d
Hindsight Bias
iv
Tendency to fixate on initial information and fail to adequately adjust for subsequent information
Choose the correct option from those given below:
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.
