A company has to decide on how to allocate its advertising budget over space as well as over time.A company makes "spot buys" when it buys TV time in just a few markets or in regional editions of magazines.These markets are called ________.
A) areas of dominant influence
B) trading areas
C) short-term marketing opportunities
D) SMSA
E) none of the above

Question

Quizplus · Accepted Answer

Areas of dominant influence (ADI) refers to geographic markets with a high concentration of TV households that receive the majority of their TV signals from the same source (usually a city or metropolitan area). These are the markets where spot buys are most effective, making them the best choice for allocating advertising budget over space targeting specific audiences. Trading areas (choice B) refer to the geographic boundaries around a city or town where the majority of people do their shopping and thus are more relevant for distribution and pricing strategies. Short-term marketing opportunities (choice C) are usually time-limited tactics such as sales promotions or product discounts, which can be applied in various markets and media channels. Standard metropolitan statistical areas (SMSA, choice D) are geographic regions defined by the US Census Bureau to identify urbanized areas and the surrounding regions with close economic and social ties. While they provide useful demographic data, they are not directly related to spot buying or advertising budget allocation.

A Company Has to Decide on How to Allocate Its