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61) Which method of setting an advertising budget is based on analyzing competitors’ spending? A) the percentage-of-sales method B) the top-down method C) the bottom-up method D) the objective-task method E) the competitive-parity method 62) Which of the following statements about the competitive-parity method of budgeting is true? A) It is the most commonly used bottom-up method for budgeting. B) It works because it relies on dynamic market shares that change annually. C) It is the only top-down budgeting method used to determine promotional budgets. D) It is considered the most logical budgeting method. E) It mirrors the best thinking of others in the business. 63) The ________ method of promotional budgeting is based on determining spending necessary to accomplish specific promotion goals. A) percentage-of-sales B) competitive-parity C) top-down D) pull-push E) objective-task 64) Which of the following is an example of a bottom-up technique for developing promotional budgets? A) the competitive-parity method B) the objective-task method C) the percentage-of-sales method D) the pull-push method E) the AIDA method 65) Which promotional mix strategy directs marketing efforts toward final consumers? A) push B) pull C) flighting D) pulsing E) AIDA 66) Which promotional mix strategy directs marketing efforts toward market channel members? A) push B) pull C) flighting D) pulsing E) AIDA 67) Which of the following is typically true during the introduction stage of the product life cycle? A) Personal selling is the primary promotional tool in the consumer market. B) The pull strategy is implemented more frequently than the push strategy. C) Publicity is not effective. D) Sales promotion may be used to encourage trial. E) Sales promotion is more successful than advertising. 68) Which of the following is typically true during the growth stage of the product life cycle? A) The use of advertising decreases. B) Product benefits are the focus of promotions. C) The use of sales promotion to encourage trial increases. D) Spending on most aspects of promotion decreases. E) The tool of public relations is rarely used. 69) In the maturity phase of the product life cycle, the primary promotional objective is to ________. A) create product awareness B) encourage product trial C) build product credibility D) inform the public of product benefits E) persuade consumers to switch brands 70) Which of the following is typically true during the decline stage of the product life cycle? A) Advertising expenses increase. B) Sales promotion efforts are increased. C) Public relations efforts are the promotional focus. D) Personal selling costs are increased. E) Spending on all elements of the promotion mix is reduced.

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