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.

Understand cumulative cultural evolution and its mechanisms.

Discuss the transmission of culture through explicit instruction and other means.

Understand the interplay between biological, cultural, and environmental factors in human development.

Understand the development of emotion regulation and its significance during adolescence.

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Definitions:

Differentiated

In a market, it refers to products that are distinguished from each other through variations in quality, features, branding, or customer service.

Oligopoly

A market structure in which a few firms sell either a standardized or differentiated product, into which entry is difficult, in which the firm has limited control over product price because of mutual interdependence (except when there is collusion among firms), and in which there is typically nonprice competition.

Homogeneous Product

A product that cannot be distinguished from competing products from different suppliers.

Differentiated Product

A product that is made distinct from similar products offered by competitors through unique features, quality, branding, or other attributes.