Once the Design of Each of the Promotional Program Elements

question 166

Multiple Choice

Once the design of each of the promotional program elements is complete, it is important to determine the most effective timing of their use. The ________ describes the order in which each promotional tool is introduced and the frequency of its use during a campaign.

• A) perceptual map
• B) efficiency matrix
• C) sensitivity analysis
• D) promotion-to-sales ratio
• E) promotion schedule

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Definitions:

Capital Budgeting

The process of planning significant investments in projects that have long-term implications such as the purchase of new equipment or the introduction of a new product.

Internal Rate

Commonly identified as the internal rate of return (IRR), this is the discount rate that sets the net present value (NPV) of all cash flows associated with a specific project to zero.

Discounted Cash Flow

A valuation method used to estimate the value of an investment based on its expected future cash flows, adjusted for time value of money.

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term liquidity.