When using the payout planning method of developing a marketing communications budget, the larger amounts of dollars would be spent on marketing communications:
A)in the early years to build brand awareness and brand equity.
B)in the middle years to build brand equity and brand preference.
C)in the later years to maintain market share.
D)when the market share is the lowest.

Question

Quizplus · Accepted Answer

The payout planning method of developing a marketing communications budget suggests that the larger amounts of dollars should be spent in the early years to build brand awareness and brand equity. This is because the marketing communications investments made in the initial years will help establish the brand and create a strong position in the market, which will pay off in terms of sales and profitability in the later years. As the brand becomes more established and gains market share, the need for spending large amounts on marketing communications decreases, and the focus shifts to maintaining the existing market share. Therefore, option A is the best choice.

When Using the Payout Planning Method of Developing a Marketing