American Express is dissatisfied with the degree of penetration of its Gold Rewards Plus card in the U. S. market. Marketing managers at American Express feel that the firm needs to increase advertising to small entrepreneurial businesses to encourage more acceptance of the card for use in purchasing office supplies and durable goods like computers and office furniture. American Express feels that to accomplish the goal of increased penetration in this sector, the budget should be based on communications objectives aimed at certain target markets. (Scenario 8-4) The marketers are keenly aware that many budgeting methods fail to address the objectives originally set and relate these to the dollars to be spent. Which budgeting technique does American Express ultimately most likely decide to use, based on this awareness and the information in this scenario? share-of-market approach objective-and-task approach percentage-of-sales approach share-of-voice approach

Question

Adonis Villa

Business

19 November, 09:35

American Express is dissatisfied with the degree of penetration of its Gold Rewards Plus card in the U. S. market. Marketing managers at American Express feel that the firm needs to increase advertising to small entrepreneurial businesses to encourage more acceptance of the card for use in purchasing office supplies and durable goods like computers and office furniture. American Express feels that to accomplish the goal of increased penetration in this sector, the budget should be based on communications objectives aimed at certain target markets. (Scenario 8-4) The marketers are keenly aware that many budgeting methods fail to address the objectives originally set and relate these to the dollars to be spent. Which budgeting technique does American Express ultimately most likely decide to use, based on this awareness and the information in this scenario? share-of-market approach objective-and-task approach percentage-of-sales approach share-of-voice approach

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Answers (2)

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Gilbert · Answer 1

American Express ultimately most likely decide to use Objective and task approach for its budgeting technique.

Explanation:

In the objective and task approach planning system, certain measure of spending plan is been dispensed for the particular destinations rather than projections while setting the targets that an association needs to accomplish, perceiving the undertakings that must be satisfied and afterward making sense of how should cost or spending plan is expected to achieve that objective. For this situation, American express needs to expand their promoting in U. S advertises with the goal that acquisition of their gold prizes in addition to card will support, so the destinations must be set centering upon target showcase.

Makhi King · Answer 2

Objective and tasks approach

Explanation:

Noteworthy here is the fact that American Express has an objective in mind, which is for entrepreneurial businesses to encourage more acceptance of the card for use in purchasing office supplies and durable goods like computers and office furniture.

They also do not want to fail to achieve their objectives like other marketers, so they most likely will employ the objective tasks approach method so as to avoid the shortcomings of other marketers as well as to reach their goals.