Scenario 8-4 American Express Is Dissatisfied with the Degree of Penetration of Penetration

question 55

Multiple Choice

Scenario 8-4
American Express is dissatisfied with the degree of penetration of its Gold Rewards Plus card in the U.S. market. Marketing managers at American Express feel that the firm needs to increase advertising to small entrepreneurial businesses to encourage more acceptance of the card for use in purchasing office supplies and durable goods like computers and office furniture. American Express feels that to accomplish the goal of increased penetration in this sector, the budget should be based on communications objectives aimed at certain target markets.
-(Scenario 8-4) American Express marketers say they do not use the ______ advertising budgeting method,because if sales begin to decrease in this segment,so will their budget.

• A) share-of-market 
• B) percentage-of-sales 
• C) share-of-voice 
• D) objective-and-task

---

Definitions:

Feedback on Performance

Information provided about one's actions or work output, intended to reinforce strengths or identify areas for improvement.

Positive Reinforcement

A strategy in management and training where positive behavior is encouraged and rewarded, increasing the likelihood of its recurrence.

Behavior Modification

An effective way to improve human performance, established in the 1950s and used in a wide variety of business, government, and nonprofit organizations. Elements include goal setting, feedback on performance, and positive reinforcement.

Discipline

The practice of training oneself to obey rules or a code of behavior, using punishment to correct disobedience.