Question

Increasing the promotional budget for a product in order to increase awareness is not advisable in the short run under which of the following circumstances?

Answer 1

Answer:

Production capacity is maxed out (200% plant utilization) and the company is stocking out of the product

Explanation:

Answer 2

In this question, we need to identify the circumstances.

• Production capacity is maxed out and the company is stocking out of the product.
• These circumstances do not promote increasing the promotional budget for a product to increase awareness is not advisable in the short run.
• A promotional budget is a budget that specifies how much money should be set aside to advertise an organization's services and goods.
• It aids in determining the expense required to manage the brand's image.
• An increase in marketing spending to raise brand awareness of the product in the near term once manufacturing capacity is reached.
• A budget is a financial plan created for a set period to specify how the money will be spent.
• The goal of budgeting is to maintain a balance between a company's earnings and expenses.

PROJECT CODE #SPJ2