Question

In: Economics

1. The affordable method in establishing a total promotional budget for a company is based on:


1. The affordable method in establishing a total promotional budget for a company is based on:

A. How much the company can afford to spend on the promotional mix.

B. How much customers can afford to spend on the company’s product.

C. How much money it takes to reach all of the customers in the target market.

D. How much money is spent in average per each customer who makes a purchase.


2. Which of the following is not a method of determining a promotional budget?

A. The affordable methods

B. The percentage of sales methods

C. The competitive parity method

D. The competitive advantage method


3. The mix of promotional tools changes as the product goes through different stages in its lifecycle. This is because:

A. customers should rely on more than one method of promotion at each stage to make promotion effective.

B. customers view of the product differently and different communication strategies are necessary to emphasize the various elements of a product in each stage of the life cycle.

C. customers need reinforcement by multiple methods.

D. customers are generally skeptical of advertising.


4. A major hotel chain has implemented a very easy to use kiosk for check in. A recent ad for the hotel shows a business customer arriving at the hotel and using one of the kiosks to check in and retrieve a room key in less than a minute. This advertising is most likely to be executed as:

A. Lifestyle

B. Personality

C. Slice of life

D. Fantasy

Solutions

Expert Solution

1.The answer is option A

The affordable method in establishing a total promotional budget for a company is based on:How much the company can afford to spend on the promotional mix.

Most of the companies use the affordable method for determining the promotion budget. The promotion budget will be set in a manner that the company can afford.

2.The answer is option D.

The different methods of determining a promotional budget are:

1.The affordable method

2. The percentage of sales method

3.The competitive parity method

4.Objective and task method

3.The answer is option B.

The mix of promotional tools changes as the product goes through different stages in its lifecycle because customers view of the product differently and different communication strategies are necessary to emphasize the various elements of a product in each stage of the life cycle.

4.The answer is option A;Lifestyle

The advertisement shows the customers ease and comfort for check in in an hotel.In his busy life, it may be a relief for him if all the procedures are done easily within less time.It may also be time consuming for him.So the ad is to be executed as Lifestyle ad.

Rahul Sunny answered 2 years ago
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