Answered step by step
Verified Expert Solution
Question
1 Approved Answer
As product marketing manager, one of our jobs is to prepare recommendations to the Executive Committee as to how advertising expenditures should be allocated. Last
As product marketing manager, one of our jobs is to prepare recommendations to the Executive Committee as to how advertising expenditures should be allocated. Last year's advertising budget of $40,000 was spent in equal increments over the four quarters. Initial expectations are that we will repeat this plan in the coming year. However, the committee would like to know whether some other allocation would be advantageous and whether the total budget should be changed. Our product sells for $40 and cost us $25 to produce. Sales in the past have been seasonal, and our consultants have estimated seasonal adjustment factors for unit sales as follows:n
Q1:90% Q2:110% Q3:80% Q4:120%n
(A seasonal adjustment factor measures the percentage of average quartely demand experienced in a given quarter)n
In addition to production costs, we must take into account the cost of the sales force( projected to be $34,000 over the year, allocated as follow: Q1 and Q2, $8,000 each; Q3 and Q4, $9,000 each), the cost of advertising itself, and overhead(typical arround 15% of revenues).n
Quaterly unit sales seem to run around 4,000 units when advertising is around $10,000. Clearly advertising will increase sales, but there are limits to its impact. Our consultants several years ago estimated the relationshop between advertising and sales. Converting that realationship to current conditions gives the following formula:n
Unit sales= 35*seasonal factor * ?(3,000+advertising)n
n
Creat a data dictionary(glossary) for the advertising budget decision( only Data dictionary, do not build spreadsheet, no calculations in your answer). I need the answer step by step,pls
Q1:90% Q2:110% Q3:80% Q4:120%n
(A seasonal adjustment factor measures the percentage of average quartely demand experienced in a given quarter)n
In addition to production costs, we must take into account the cost of the sales force( projected to be $34,000 over the year, allocated as follow: Q1 and Q2, $8,000 each; Q3 and Q4, $9,000 each), the cost of advertising itself, and overhead(typical arround 15% of revenues).n
Quaterly unit sales seem to run around 4,000 units when advertising is around $10,000. Clearly advertising will increase sales, but there are limits to its impact. Our consultants several years ago estimated the relationshop between advertising and sales. Converting that realationship to current conditions gives the following formula:n
Unit sales= 35*seasonal factor * ?(3,000+advertising)n
n
Creat a data dictionary(glossary) for the advertising budget decision( only Data dictionary, do not build spreadsheet, no calculations in your answer). I need the answer step by step,pls
Step by Step Solution
★★★★★
3.43 Rating (159 Votes )
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started