Which of the Following Is True of Allocation of the Promotional

question 109

Multiple Choice

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

• A)In this stage, promotional dollars will be used only for distributing coupons to customers.
• B)In this stage, promotional dollars will be used only for distributing samples.
• C)In this stage, price-offs and bonus packs must be used intermittently to maintain consumer loyalty.
• D)In this stage, all the promotional support for the brand will be removed.
• E)In this stage, advertising is primarily a reminder to keep consumers aware of the brand.

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Definitions:

Activity Variance

The difference between budgeted and actual activity levels, impacting costs and operational efficiency.

Budgeting

Drafting a blueprint for budgeting your resources, specifying a company's fiscal and operational targets.

Planning Budget

A budget prepared for a particular level of activity that estimates revenues, expenses, and resources over a period.

Administrative Expenses

Costs related to the general operation of a business, such as salaries of executive officers, legal and accounting fees.