Last year, General Mills spent $3 million on advertising and observed a 5 percent increase in market share. This year, they spent $4 million and observed a 7 percent increase. These measures are considered the:

Question

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The sales response function measures the relationship between advertising expenditures and resulting sales. In this scenario, General Mills' different expenditures and resulting market share increases make it an example of a sales response function. Market-product ratio refers to sales revenue divided by the total market sales revenue, the sales ratio function is not a commonly recognized term in marketing, and marginal analysis refers to the analysis of the marginal cost and marginal revenue of a company's products, not advertising.

Last Year, General Mills Spent $3 Million on Advertising and Observed