Question

Clara, who manages the marketing efforts for Glade air freshener, has just completed researching the marketing expenditures for Wizard air freshener. Prior to that, Clara had estimated Glade's 2006 marketing budget based on the objectives, strategies, and tactics as stated in the 2006 Marketing Plan. Now, she will adjust the budget as needed to achieve the necessary Share of Voice. Which of the following are true? I Clara is using affordable budgetingII Clara is using competitive parity budgeting methodsIII Clara should not use a combination of budgeting methodsIV Clara is using objective and task budgetingV If Clara wants Glade to grow 10% points in market share, they will need to have an additional 10% Share of Voice

Answer 1

II Clara is using competitive parity budgeting methods

IV Clara is using objective and task budgeting

Step-by-step explanation:

Share of voice basically measures your brand's share of total advertising in a market. It is very useful to determine your brand's visibility and helps to develop you company's external competitive analysis. It differs from market share since market share represents the actual share of total market sales that your company has.

In this case, Clara is adjusting her marketing budget to reach the appropriate share of voice for Wizard air freshener. She needs to compare the product's current share of voice with the competition's and the projected marketing expenses for next year.

A high share of voice doesn't necessarily match a high market share, although it helps to increase it.