Future Business Leaders of America (FBLA) Advertising Practice test

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Prepare for the Future Business Leaders of America Advertising Test with engaging content and practice questions. Understand exam expectations and increase your chances of success with our helpful tips and resources!

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Advertising budgets based on competitor spending utilize which method?

Market response model
Percentage of sales method
Competition-matching method
Objective and task method

The correct answer is: Competition-matching method

The competition-matching method is an approach where a business sets its advertising budget by looking at how much its competitors are spending on advertising. This method takes into account the overall competitive landscape, ensuring that the company remains competitive in its advertising efforts. It allows a business to allocate resources in a way that aligns with what similar companies are doing, potentially increasing its visibility in the market. This method is particularly useful in industries where competitive dynamics play a significant role, as it can help a company gauge the advertising intensity needed to maintain or grow its market share. By matching competitor spending, businesses aim to achieve a similar level of market presence and consumer awareness, ultimately contributing to the effectiveness of their marketing strategy.