Which of the Following Is True of Allocation of the Promotional

question 101

Multiple Choice

Which of the following is true of allocation of the promotional budget when a brand enters the introductory stage?

• A)In this stage, promotional dollars will not be allocated for activities such as sampling and couponing.
• B)In this stage, a large portion of the budget will be allocated to sales promotion techniques.
• C)In this stage, promotional dollars must be used to eliminate brand differences.
• D)In this stage, all the promotional support for the brand will be removed.
• E)In this stage, promotional dollars will be used only for word-of-mouth marketing.

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Definitions:

Equipment

Tangible assets used in operations, such as machinery and computers, that have a useful life beyond one year.

Owner's Equity

The residual interest in the assets of an entity after deducting liabilities, representing the ownership interest of shareholders or owners.

Balance Sheet

A balance sheet is a financial statement that reports a company’s assets, liabilities, and shareholders' equity at a specific point in time, offering a basis for computing rates of return and evaluating its capital structure.

Assets

Resources owned or controlled by a business or an individual that are expected to produce future economic value.