Question

Suppose that Ogden Publications is interested in closely aligning its advertising expenditures with efforts to attain it key corporate goals. With this orientation, Ogden would most likely use which one of the following methods to determine the dollar amount to be spent on its marketing communications package (or advertising budget)?

Answer 1

Ogden Publications would likely use the objective and task method to align its advertising budget with corporate goals, due to this method's focus on achieving specific business objectives through precise budgeting. Advertising plays a critical role in monopolistic competition, especially as new media expands opportunities for targeted marketing efforts.

Step-by-step explanation:

If Ogden Publications is focused on aligning its advertising expenditures with their key corporate goals, the company would most likely adopt an objective and task method for determining its advertising budget. This approach involves identifying specific objectives that are in line with the company's goals, determining the tasks required to achieve these objectives, and then estimating the costs associated with these tasks to set the budget. This method is precise and allows for better alignment with corporate goals compared to other methods such as percentage of sales or competitive parity.

Advertising plays a pivotal role in monopolistic competition by differentiating products, building brand recognition, and influencing consumer preferences. The significant amount spent on advertising in the U.S. economy, as noted, reflects its importance in a market where many firms compete on product differentiation rather than price alone. With the emergence of new media platforms like mobile devices, the opportunities for targeted and effective advertising have expanded, further emphasizing the role of a well-strategized advertising campaign in achieving corporate objectives.