Principles Of Marketing
17th Edition
ISBN: 9780134492513
Author: Kotler, Philip, Armstrong, Gary (gary M.)
Publisher: Pearson Higher Education,
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 14, Problem 14.13AC
Summary Introduction
Case summary:
By using the percent of sales approach the advertisers can set their budget at a specific percentage on the forecasted and current sales. But there is no clear percentage to use. So marketers will look into the competitors spending and industry average for the purpose of comparison.
The details of these two will be available in the in websites to guide the marketers.
To classify: The reason for the some industries having higher advertising-to-sales ratio compared to others.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents 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.
Using 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?
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.
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
- Best Ad -- Worst Ad Describe your favorite advertisement, and why. Do you think it is effective in getting people to buy this product? Describe an advertisement that you think is bad for whatever reason, and why you think so. Is it offensive? Ineffective? Unethical? Who do you think this ad is aimed at? Why would a company use "bad" advertising? Do people buy the product anyway? Why?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_forwardWhen the term "Marketing" is mentioned, many people assume it is only advertising. The fact of the matter is that marketing encompasses many principles. One of those principles is Value Proposition". value proposition is the full mix of benefits upon which a brand is positioned. There are five possible value propositions. List and briefly explain and give an example on each one.arrow_forward
- Discuss the role of keywords in online advertising, particularly in pay-per-click (PPC) campaigns. How do advertisers select and optimize keywords for better ad performance?arrow_forwardDiscuss the role of keywords in pay-per-click (PPC) advertising campaigns. How do advertisers select and optimize keywords to improve ad performance?arrow_forwardDiscuss the role of keywords in pay-per-click (PPC) advertising. How do advertisers select and optimize keywords for effective PPC campaigns?arrow_forward
- How does the choice of keywords affect the effectiveness of pay-per-click (PPC) advertising campaigns?arrow_forwardWhy has measuring advertising effectiveness become so important? What types of advertising results do marketers measure and what are the issues related to this assessment?arrow_forwardChoose two companies, one a consumer products company and the other an on-line retailer. Conduct some research on these two companies in terms of their promotional practices; Describe some of the types of promotions that these companies have engaged in during the last year -- for example, ran television ads, sponsored an event, held a sweepstakes, etc. To the best of your abilities, determine the objective of each promotion in relation to the AIDA model. Also note if the companies' promotions are integrated or not.arrow_forward
- In order for an organization to produce a successful marketing plan, there are many elements to consider. Describe what it means by "advertising clutter" and how marketers can avoid content clutter.arrow_forwardMany people think that marketing is just about advertising and promotion. Why is this not accurate? Please Be specific in your response.arrow_forwardThe 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_forward
arrow_back_ios
arrow_forward_ios