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, which was a star performer last year but has seen 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 is Katie's decision most likely to entail?

Question

Quizplus · Accepted Answer

Katie's decision to implement discounting strategies and focus on short-term profits suggests that she is willing to cut advertisement budgets to fund price promotions. This is because offering discounts will have a direct impact on profits, while reducing advertising spend will free up funds to finance the discounting strategy. Therefore, option A is the most likely choice for Katie.

As One of the Marketing Managers of a Retail Firm