When Using the Percentage-Of-Sales Approach for Determining the Advertising Appropriation

question 130

Multiple Choice

When using the percentage-of-sales approach for determining the advertising appropriation, marketers:

• A) base their funding on a percentage of the competitors' sales.
• B) multiply the firm's past sales by a set percentage they want to spend.
• C) set sales objectives for the upcoming period and base appropriations on these goals.
• D) multiply the firm's past sales, plus a factor for expected changes in sales by a standard percentage.
• E) use an industry standard to determine what percentage of their profits they want to allocate to advertising.

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Definitions:

Cholesterol Levels

The measure of cholesterol in the blood, which can indicate risk for heart disease; includes measurements of LDL (bad) and HDL (good) cholesterol.

Stroke

A medical condition occurring when the blood supply to part of the brain is interrupted or reduced, causing brain cells to die due to a lack of oxygen.

Heart Disease

A range of conditions affecting the heart, including coronary artery disease, heart rhythm problems, and heart defects.

Emphysema

A chronic lung disease characterized by overdistension of the alveolar sacs and inability to exchange oxygen and carbon dioxide.