According to James O

Multiple Choice

According to James O. Peckham, which of the following statements provides a good rule of thumb for a company setting the advertising budget for a new product?

A) Its advertising budget should be twice the desired market share.
B) Its advertising budget should be equal to that of the largest market shareholder in the product category.
C) Its advertising budget should be as much as the firm can afford.
D) Its advertising budget should be ten percent greater than the average budget planned for the entire payout period.
E) Its advertising budget should be less than that needed to maintain the desired market sharE.After studying more than 40 years of Nielsen figures, James O.Peckham estimated that the average share of advertising to sales ratio necessary to launch a new product successfully is approximately 1.5:2.0.This means that a new entry should be spending at approximately twice the desired market share.