In the arbitrary allocation method of establishing advertising budget, management decides
the budget on the basis of what is felt to be necessary
The degree to which media objectives and communication objectives are achieved is based
on the size of the media budget
Identify some reasons indicating that the logic of the marginal analysis model is weak.
Multiple select question.
• the assumption that advertising expenditures have a direct correlation to sales
• it is generally believed that sales result from the successful attainment of behaviour
and communication objective relevant to the target audience
• the assumption that advertising and promotion are solely responsible for sales
ignores the remaining elements of the marketing mix
In the percentage-of-sales method, used only 10 percent of the time, sales of a product is
the basis for the advertising and promotions budget.
Identify a true statement about the factors that influence a media plan.
Information about actual audience figures is inadequate as some data cannot be measured
A part of projected future sales is used as a base for budgeting in the percentage-of-sales
