Chapter Questions
How might Honda, as set out in the mini case at the beginning of this chapter, divide their annual budget across the media? What issues might arise in this process?
What problems might be encountered when setting communications budgets?
Write a brief paper outlining the essence of marginal analysis. What are the main drawbacks associated with this approach?
Why is the objective and task method gaining popularity?
What is a payout plan?
Discuss the view that if the $A / S$ ratio only measures average levels of spend across an industry then its relevance may be lost as individual organisations have to adjust levels of promotional spend to match particular niche market conditions.
How might the notion of SOV assist the appropriation-setting process?
What are 'profit-taking' and 'investment' brands?
Determining the level of spend for sales promotion is potentially difficult. Why?
How might understanding brand value assist in developing a communications budget?