A satisfactory mixture of advertising and promotion expenditures can be formulated by considering the different purposes of each.A key strategic consideration is whether _____.
A) short- or long-term schemes are more important given a brand's life-cycle stage and in view of competitive realities
B) the budget would allow for the relatively larger expense of advertising
C) the organization has the expertise in its current staff to develop successful promotions
D) the majority of the target market is price sensitive
E) use of sales promotion is necessary given current economic conditions

Question

A satisfactory mixture of advertising and promotion expenditures can be formulated by considering the different purposes of each.A key strategic consideration is whether _____.
A) short- or long-term schemes are more important given a brand's life-cycle stage and in view of competitive realities 
B) the budget would allow for the relatively larger expense of advertising 
C) the organization has the expertise in its current staff to develop successful promotions 
D) the majority of the target market is price sensitive 
E) use of sales promotion is necessary given current economic conditions

Quizplus · Accepted Answer

The key strategic consideration is whether short- or long-term schemes are more important given a brand's life-cycle stage and in view of competitive realities. This will determine the balance between advertising and promotion expenditures. For example, a new brand in a highly competitive market may require more advertising initially to build brand awareness, whereas a mature brand may focus more on promotions to drive sales in the short-term.

A Satisfactory Mixture of Advertising and Promotion Expenditures Can Be