As one of the marketing managers of a retail firm,Katie has to decide the size of the advertising budget for a hair care product.Although the product performed well the previous year,there was a considerable fall in its market shares recently.To address this problem,Katie decides to implement discounting strategies and focus on short-term profits.Which of the following measures is Katie most likely to implement?

Question

Quizplus · Accepted Answer

Katie's decision to implement discounting strategies and focus on short-term profits suggests that she is willing to sacrifice long-term gains for immediate results. Cutting advertisement budgets to fund price promotions is a common tactic for firms looking to boost short-term sales. Therefore, this is the option Katie is most likely to implement. Option B, minimizing quarterly earnings, would not be a desirable outcome for any company. Option C, viewing advertising as a nondiscretionary cost, does not align with Katie's current goal of increasing short-term profits. Finally, option D, abstaining from raiding advertisement budgets to increase earnings, would be counterproductive to her current strategy.

As One of the Marketing Managers of a Retail Firm,Katie