Which of the following statements is true of the factors that affect an advertising budget?
A) New products typically merit large advertising budgets to build awareness and to gain consumer trial.
B) High-market-share brands usually require proportionately high advertising expenditure as a percentage of sales to maintain share.
C) Brands in less-differentiated or commodity-like product classes require very less advertising to establish a unique image.
D) In a market with few competitors and moderate advertising spending, a brand must advertise more heavily to be heard.
E) Established brands usually are supported with high advertising budgets, measured as a ratio to sales.
Correct Answer:
Verified
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