Setting the Advertising Budget: Definition & Approaches


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question 1 of 3

_____ allows companies to communicate with consumers to promote a product or a service.

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1. Which of the following is included in the percentage method?

2. Which of the following determines a company's goal and allocates money accordingly?

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About This Quiz & Worksheet

This quiz and worksheet is offered as an assessment of what you know about the purpose of a advertising budget and the ways you can approach creating one. You'll be tested on the information needed to properly develop this type of budget.

Quiz & Worksheet Goals

This quiz and worksheet reviews what you know about:

  • What allows companies to communicate with customers about products and services
  • Understanding the different methods of creating an advertising budget
  • The percentage method

Skills Practiced

  • Information recall - see if you can remember what method focuses on a company's goal and budgets accordingly
  • Interpreting information - verify that you read about the method for budgeting that researches what other companies are doing and interpret it correctly
  • Knowledge application - review what you know to answer questions about how a company lets a consumer know about who they are and what they offer

Additional Learning

If you like to learn more about this topic, you can find a more comprehensive review in the lesson Setting the Advertising Budget: Definition & Approaches. This lesson covers more about:

  • What advertising does for a company
  • Comparing the focus of the different methods for developing advertising budgets
  • Which method is used most
  • Budget decision-making based on advertising tactics
  • The challenge for new businesses in competitive parity