When Gillette Introduced Its Venus Razor for Women Several Years

question 144

Multiple Choice

When Gillette introduced its Venus razor for women several years ago,it spent $100 million on advertising and other promotions and successfully boosted its market share.As an advertising consultant,you would advise Gillette to now:

• A) double its advertising budget in order to double its market share
• B) maintain the current advertising budget and continue to focus on brand awareness and market share gains
• C) slowly increase the amount spent on advertising and promotion to offset competitive advertisements
• D) shift the budget dollars from advertising to sales promotion and personal selling due to a change in the product life cycle stage
• E) focus on maintaining market share and spend proportionately less on advertising because additional expenditures would reap diminishing benefits

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Definitions:

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenue, indicating the company's bottom line.

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity, typically including the balance sheet, income statement, and cash flow statement.

Dividends Paid

Payments made by a corporation to its shareholder members, usually derived from the company's earnings.

Retained Earnings

The portion of a company's profits not distributed to shareholders as dividends but kept within the company to reinvest in business operations or pay down debt.