Marketing: An Introduction (13th Edition)
13th Edition
ISBN: 9780134149530
Author: Gary Armstrong, Philip Kotler
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 12, Problem 12.14MA
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.
Company G is the number 2 auto insurer with revenue of $17 billion 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 %.
Introduction:
An advertisement is an announcement made to capture the attention of the people and attract them to buy the goods. Advertisements are done through magazines, newspapers, television, online, and so on.
To determine: The budget of Company G based on advertising spending on industry advertising to sales ratio and Company G consistent with average industry advertisement spending
Expert Solution & Answer
Trending nowThis is a popular solution!
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)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, marketing and related others by exploring similar questions and additional content below.Similar questions
- Imagine that your team has been hired to create an Advertising strategy for the release of a new line of running shoes produced by athletic apparel maker Under Armour. The Maryland-based company has been rapid growth in recent years and is a globally recognized rival to Nike and Adidas. Beyond the central advertising campaign for the new shoe line, what tools would your team employ to achieve integrated brand promotion? Explain how you would coordinate your efforts to ensure maximum effectiveness.arrow_forwardFind an example of each type of consumer sales promotion tool. Explain how you obtained the promotion (that is, how did the marketer distribute it to consumers?) and what you think the marketer was trying to achieve withthe sales promotion tool.arrow_forwardChoose a consumer product with which you are familiar. Determine whether this product is new to the marketplace or an established product, and then decide upon a set of sales promotion objectives for this product. Finally, explain the sales promotion plan you create using three of the specific tools?arrow_forward
- Consider a new product is launched, and you are selected as an advertising expert to promote that product throughout its Life Cycle. Please explain the following question for all the stages of product life cycle: Q.How those objectives will guide you in formulation of advertising campaign for different Life Stages of that product?arrow_forwardThink of a product that you use regularly. Find several examples of how the manufacturer markets this product, such as ads in different media, sales promotions, and publicity. Assess each example for effectiveness in meeting one or more of the six promotional goals described in the chapter. Then analyze them for effectiveness in reaching you as a target consumer. Consider such factors as the media used, the style of the ad, and ad content?arrow_forwardChoose a company, brand or organization selling products, services, or ideas and create their next advertising campaign! * PART 1: CHOOSE THE COMPANY/BRAND/ORGANIZATION Introduce the company/brand/organization. Explain why you selected it. Who is the company/brand/organization targeting? How are they differentiating themselves in the market place? What kind of positioning strategy do they currently follow? Give a brief overview of their current marketing mix. Analyze their current advertising campaign(s) and other elements of their IMC strategy. Are they effective?arrow_forward
- Discuss the role of keywords in pay-per-click (PPC) advertising campaigns. How do advertisers select and optimize keywords to improve ad performance?arrow_forwardMarketing Mix consists of the 4 P's. One of those P's is Promotion List the two main promotion mix strategies and the marketing activities used for each strategyarrow_forwardchoose a consumer product with which you are familiar. Determine whether this product is new to the marketplace or an established product, and then decide upon a set of sales promotion objectives for this product. Next, develop a sales promotion plan for the product that employs three specific tools .arrow_forward
- The first step in developing an ad campaign is to identify the targetaudience. Why is this the starting point for effective advertising? Whatkind of information is used to identify target audiences?arrow_forwardUsing the percent of sales method, an advertiser sets its budget at a certain percentage of current or forecasted sales. However, determining what percentage to use is not always clear. Many marketers look at industry averages and competitor spending for comparisons. Websites and trade publications publish data regarding industry averages to guide marketers in setting the percentage to use. Find industry advertising-to-sales ratio data. Why do some industries have higher advertising-to-sales ratios than others? Determine the advertising-to-sales ratios for two competing companies and compare them to the industry advertising-to-sales ratio found above. Why do you think there is a difference between competitors and the industry average?arrow_forwardDirect Marketing is an interactive system that uses one or more promotion media to effect a measurable response at any location. You have just been appointed the first ever sales manager of a company selling a range of outdoor leisure clothing and equipment. These are at present only distributed through excusive retail outlets. Your priority is to increase sales by direct marketing techniques. Prepare a report setting our how you would do this in the next year.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
