Before Setting Objectives for Advertising and Promotion, an Organization Should

question 58

Multiple Choice

Before setting objectives for advertising and promotion, an organization should:

• A)conduct a situation analysis to identify marketing and promotional issues facing the firm.
• B)develop its media plan and allocate the budget to each media.
• C)evaluate the effectiveness of the advertising and promotional strategies.
• D)conduct test marketing to check the effectiveness of the marketing strategies developed for the current products and services.
• E)set its advertising and promotional budgets.

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Definitions:

Tax

A compulsory financial charge or levy imposed by a government on individuals or entities to fund public expenditure.

Consumer Surplus

The difference between the aggregate willingness to pay by consumers for a good or service and the aggregate actual payment.

Deadweight Loss

An economic inefficiency caused by a disruption in market equilibrium, leading to a loss of societal welfare.

Consumer Surplus

The disparity between the ideal total expenditure consumers are willing to make on a good or service and the real expenditure.