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

question 13

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 times 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:

Psychotropic Medication

Drugs that affect a person's mental state and are used to treat mental health conditions.

Mood Disorder

A mental health class that health professionals use to broadly describe all types of depression and bipolar disorders.

Confused Thinking

A state where an individual experiences difficulty in understanding, concentrating, and making decisions, often reflective of underlying mental health issues.

Antipsychotics

Antipsychotics are medications primarily used to manage psychosis, including hallucinations, delusions, or disordered thought.