In Using the Payout Planning Method of Developing a Marketing

question 145

Multiple Choice

In using the payout planning method of developing a marketing communications budget, the larger amounts of dollars would be spent on marketing communications:

• A) in the early years to build brand awareness and brand equity.
• B) in the middle years to build brand equity and brand preference.
• C) in the later years to maintain market share.
• D) when the market share is the lowest.

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Definitions:

Credit Sales

Sales for which payment is not received at the time of purchase, allowing customers to pay at a later date, thereby creating receivables for the seller.

Cash Sales

Transactions where payment is made in cash at the time of purchase, without the extension of credit.

Inventory

The goods and materials that a business holds for the ultimate purpose of resale or production.

Accounts Payable

Refers to the amounts due by a company to its creditors for goods or services received that have not yet been paid for.