Linear trend extrapolation is a form of trend extrapolation in which the
a. pattern changes from year to year.
b. pattern is always a straight line.
c. slope of the line is tied directly to profits.
d. shape of the pattern is a hyperbola.
e. pattern follows an S-shaped curve.
Answer: b. pattern is always a straight line.
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Marketing Chapter 7
- As a result of economies of scale, large advertisers:
- As a result of ____, large advertisers can maintain advertising expenditure shares that are smaller than their market shares because they get lower advertising rates and accrue the advantages of advertising several products jointly.
- As a tool for budget allocation, multiple regression analysis is most often employed in budget models using:
- During the first months of a new product introduction, a useful budgeting technique to determine a ballpark figure for setting feasible objectives is the _____ method.
- ____ is a method for allocating budgets designed to determine the investment value of the advertising appropriation.
- The objective and task method is most difficult to use when:
- Which of the following statements provides a good rule of thumb for setting the advertising budget for a new product?
- The first task in the objective and task method of budgeting is to:
- Which of the following is an example of a budgeting allocation method that uses a build-up approach?
- Defining the communications objectives to be accomplished and estimating the costs associated with the performance of the necessary strategies and activities are steps in the _____ method of budgeting.
- The task and objective method of budgeting as well as the payout plan are both examples of the _____ approach.
- Top-down budgeting methods are commonly used because of:
- In the _____ method of budget determination advertising is considered an investment, similar to plant and equipment.
- A disadvantage associated with the _____ method is its assumption that because firms have similar promotional expenditures their programs will be equally effective.
- Which of the following is an advantage of the competitive parity method?
- Which of the following methods of determining a budget requires a marketing department manager to use input from a clipping service?
- When using the competitive parity budgeting method, the firm:
- The _____ budgetary allocation method is designed to promote stability and minimize marketing warfare as well as take advantage of the collective wisdom of the industry.
- The major problem associated with the _____ budgeting method is that it reverses the cause and effect relationship between advertising and sales.
- The _____ method of budgeting uses advertising/sales ratio data.
- Which of the following budgeting procedures would be used if a firm wanted a method that is simple to understand and financially safe?
- To set an advertising budget, the marketer of filing cabinets examines advertising to sales ratios published in trade magazines, and then allocates a percentage of sales dollars to the advertising effort. Which two budgeting methods are being employed?
- In the _____ method to budgeting, sales are projected for the coming year based on the marketing manager's estimates.
- The _____ method of budgeting is being employed when expenditures are allocated by assigning a part of the cost of the product to be allocated to advertising. The total budget is based on units sold.
- The most commonly utilized method of budget determination by large firms is: