To determine how much money to spend on advertising, marketers for a new brand of caffeinated energy drink decided that they wanted the advertising to create awareness of the new flavor in 80% of the energy drink market within one month of introduction. The marketers then determined how much it would cost to reach this goal. This is an example of which one of the following approaches to determining advertising budgets?

Question

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The approach described is objective-and-task, which involves setting specific objectives for advertising and then determining the tasks and costs necessary to achieve those objectives. This is in contrast to other approaches such as percent of sales (which is based on a percentage of past or projected sales) or arbitrary allocation (which is based on subjective judgments or historical precedent).

To Determine How Much Money to Spend on Advertising, Marketers