Scenario 8-4
American Express is dissatisfied with the degree of penetration of its Gold Rewards Plus card in the U.S. market. Marketing managers at American Express feel that the firm needs to increase advertising to small entrepreneurial businesses to encourage more acceptance of the card for use in purchasing office supplies and durable goods like computers and office furniture. American Express feels that to accomplish the goal of increased penetration in this sector, the budget should be based on communications objectives aimed at certain target markets.
-(Scenario 8-4)American Express marketers say they do not use the ______ advertising budgeting method,because if sales begin to decrease in this segment,so will their budget.

Question

Scenario 8-4
American Express is dissatisfied with the degree of penetration of its Gold Rewards Plus card in the U.S. market. Marketing managers at American Express feel that the firm needs to increase advertising to small entrepreneurial businesses to encourage more acceptance of the card for use in purchasing office supplies and durable goods like computers and office furniture. American Express feels that to accomplish the goal of increased penetration in this sector, the budget should be based on communications objectives aimed at certain target markets.
-(Scenario 8-4)American Express marketers say they do not use the ______ advertising budgeting method,because if sales begin to decrease in this segment,so will their budget.

Quizplus · Accepted Answer

American Express is not using the percentage-of-sales advertising budgeting method because they do not want their advertising budget to decrease if sales decrease. The objective-and-task method, on the other hand, allows marketers to set specific objectives and then determine the necessary budget to achieve those objectives. Therefore, it is the most suitable method for American Express to use in this scenario.

Scenario 8-4 American Express Is Dissatisfied with the Degree of Penetration of Penetration