Refer to the Following Scenario to Answer the Questions Below

question 94

Multiple Choice

Refer to the following scenario to answer the questions below.
Susan is working on the advertising plan for her company's shampoo named Silkience. She has conducted a SWOT analysis and learned that her company enjoyed a strong financial position and has good working relations with the resellers of its brands. The primary target customers for this brand are women between the ages of 35 and 50, and demographic analysis indicates that this age demographic will grow in double digits over the next 10 years. Silkience targets women who may be having concerns about graying hair. It is a gentle shampoo that will not wash out color, especially semi-permanent color that women of this age tend to use. However, Susan also learned that the target customers do not perceive her company's brand of shampoo as a brand for them but rather for a younger consumer because previous ads tended to use younger-looking models. There was also nothing in the previous advertising campaigns that really explained the benefits of the brand, such as suggesting that it was gentler for semi-permanent-colored hair.
-To determine the advertising budget, Susan divided last year's advertising expenditures by last year's sales and then multiplied that by this year's sales forecast. Which advertising budgeting method did Susan use?

• A)historical method
• B)objective-task method
• C)percentage-of-sales method
• D)all-you-can-afford method
• E)competitive budgeting method

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Definitions:

Sanctions

Positive or negative reactions to the ways that people follow or disobey norms, including rewards for conformity and punishment for violations.

Norms

Social rules or standards that dictate expected behaviors within a group or society.

Sapir-Whorf Hypothesis

A theory suggesting that the structure of a language influences its speakers' perception and categorization of the world, potentially affecting their thought processes and worldview.

Indigenous People

Ethnic groups who are the original inhabitants of a given region, having preserved traditional customs, cultural and legal distinctiveness from colonizing or dominating societies.