Which of the Following Is True of Allocation of the Promotional

question 16

Multiple Choice

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

• A)In this stage, promotional dollars will be used only for bait-and-switch marketing.
• B)In this stage, promotional dollars will be used only for rebate advertising.
• C)In this stage, price-offs and bonus packs must be used intermittently to induce product trial.
• D)In this stage, promotional dollars must be used primarily for advertising to stress brand differences.
• E)In this stage, advertising is primarily a reminder to keep consumers aware of the brand.

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Definitions:

Identifiable Net Assets

These are assets of an acquired entity that can be clearly identified and valued at the time of acquisition.

Fair Value

An estimate of the price at which an asset would trade in a fair market.

Price Paid

The total amount of money exchanged for a good or service at the time of purchase or transaction.

Goodwill

An intangible asset that arises when a company acquires another business for more than the fair value of its net assets, capturing items such as brand reputation, customer relationships, and intellectual property.