Many Marketing Managers Prefer Sales-Oriented Objectives for Advertising Because They

question 16

Multiple Choice

Many marketing managers prefer sales-oriented objectives for advertising because they believe:

• A)the reason a company spends money on advertising and promotion is to sell its products or service
• B)money spent on advertising and promotion should show measurable results
• C)sales-oriented objectives help get everyone involved in the promotional program to think about how advertising and promotion will influence sales
• D)objectives should be based on the achievement of sales results
• E)all of the above are true

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Definitions:

SMB Beta

A measure used in the evaluation of stocks, indicating a stock's sensitivity to movements in the small minus big (SMB) factor, part of the Fama-French three-factor model.

HML Beta

A measure of sensitivity to the HML (High Minus Low) factor, part of the Fama-French three-factor model, indicating how much a stock's return is affected by the value premium.

Risk Premium

The additional return expected on an investment for taking on higher risk compared to a risk-free asset.

SMB Beta

A measure used in financial models to estimate the sensitivity of a stock’s return relative to the return of a small-minus-big (SMB) factor, part of the Fama-French three-factor model.