Marketing: An Introduction (13th Edition)
13th Edition
ISBN: 9780134149530
Author: Gary Armstrong, Philip Kotler
Publisher: PEARSON
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Chapter 12, Problem 12.13MA
Summary Introduction
Case summary:
The advertiser using percent on sales method set his advertising budget on present or forecasted sales. But, percentage is not clear. Marketers view industry average and competitor spending for evaluation. Websites and other trade publications give data about the industries that help the marketer to set the percentage.
The Company G is the number 2 auto insurer with revenue of $17 billion the previous year. Company G spends $1.1 billion on advertisement at present and continues to spend the same percentage next year. The average advertising to sales rate for I Industry is 0.1 %.
Characters in case:
Company C
Industry I
Introduction:
Percentage of sales method helps to fix the percentage of the present sales or future sales. It is based on the availability of resources than opportunities.
To determine: The amount that the Company G will budget for advertisement on projected sales.
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Students have asked these similar questions
Consider a new product is launched, and you are selected as an advertising expert to promote thatproduct throughout its Life Cycle. Please explain the following questions separately for all the stages of product life cycle: a) What should be your objectives for advertisements of different stages of product’s LifeCycle.b) Debate on why you have selected an objective for advertisement during a specific stage. c) How those objectives will guide you in formulation of advertising campaign for different LifeStages of that product.
Visit the website of any organisation of your choice that has a link to Facebook, Google+, YouTube, Twitter and/or Instagram. Click on the links and discuss how that company is marketing its products by the use of social media.
Conduct an in-depth evaluation and write a report on the effectiveness of the use of social media by the selected organisation in creating customer engagement.
Advertising objectives can be classified by their primary purpose – to inform, persuade or remind. Locate one advertisement that primarily informs, one that persuades and one that reminds.
Explain how each ad meets the desired objective.
1. Name some of the challenges marketers encounter
when developing advertising and promotional
campaigns. How does the type of product affect
the promotional strategies?
2. You work for an ad agency that has a Super Bowl
sponsor as a client. What approach would you
recommend for your agency as it develops a
campaign-universal, customized for each
geographical region, or something else, and why?
3. What types of companies could benefit from
placing ads on the NFL website, and how can they
use the internet effectively to promote their
products? Consider the impact of technology and
topics of privacy for businesses and business
contracts in your answer.
4. Conclusion: Would you consider a career in
marketing? If yes, explain. If no, why not and what
other career path are you considering. What
workplace readiness skills would be most helpful
for your in your future career path.
Chapter 12 Solutions
Marketing: An Introduction (13th Edition)
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