Which of the Following Statements Regarding the Relationship Between Advertising

question 45

Multiple Choice

Which of the following statements regarding the relationship between advertising and promotion,and sales performance is true?

• A)In mature markets where other marketing mix variables are stable,it is impossible to determine the relationship between advertising and/or sales promotion and sales.
• B)The repositioning of brands is often done with a goal of improving sales or market share.
• C)When sales expectations are not being met,experienced managers are not very likely to consider changes in their advertising and sales promotion programs.
• D)Marketing and brand managers are often under pressure to show sales results and thus may take long-term perspective in evaluating advertising and promotion programs.
• E)All of the above statements regarding the relationship between advertising and promotion and sales performance are true.

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Definitions:

Perfectly Competitive Firm

A company that cannot control market prices and must therefore accept the prevailing market price for its products or services.

Short-run

A period in economics during which some factors of production or inputs are fixed, unable to be changed to respond to market conditions.

Marginal Revenue Curve

A graphical representation that shows how much additional revenue a firm will make by selling one more unit of a product.

Perfectly Competitive Firm

A company operating in a market where there are many sellers and buyers, the product is homogeneous, and there are no barriers to entry or exit.