Cross-platform research will play an increasingly important role ...

[sheilaspns]

Cross-platform research will play an increasingly important role as researchers begin to harness the different sources of data (internal and external) that are becoming available.
 a. True
  b. False
 Indicate whether the statement is true or false

Question 2

Describe the overall trend in spending on advertising and sales promotion since the 1980s. Outline at least four reasons behind this trend.

[Melissahxx]

Answer to Question 1

True

Answer to Question 2

Today many marketers have shifted the emphasis of their promotional spending away from traditional advertising and toward consumer, trade and business sales promotions. Sales promotion expenditures have grown at an annual rate of about 4-8 percent, compared with about 3-5 percent for advertising. Currently, the budget allocation is about 17.5 percent for advertising, 54 percent for trade and business promotions and 28.5 percent for consumer promotions.7 Note: These percentages differ from the data in Exhibit 14.7 because a bigger pie that includes all incentives to the trade is being used in the calculation of total dollars spent.

There are several reasons why many marketers have been shifting funds
from mass media advertising to sales promotions including
1 . Managers demand for greater accountability for promotional spending
2 . An increasingly short-term orientation among managers
3 . Consumers positive response to sales promotions
4 . The proliferation of brands in many product categories - need to gain attention and differentiate a brand despite this
5 . The increased power of retailers who demand recompense in return for giving a brand favorable placement or other attention within their environments
6 . Advertising clutter in mass media that requires greater ingenuity in achieving breakthrough.