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Which of the Following Statements Is True of the Factors

Question 104

Multiple Choice

Which of the following statements is true of the factors that affect an advertising budget?


A) High-market-share brands usually require proportionately high advertising expenditure as a percentage of sales to maintain share.
B) Brands in less-differentiated or commodity-like product classes require less advertising to establish a unique image.
C) New products typically merit large advertising budgets to build awareness and to gain consumer trial.
D) In a market with few competitors and moderate advertising spending, a brand must advertise more heavily to be heard.
E) Established brands usually are supported with high advertising budgets, measured as a ratio to sales.

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