Investment Management Certificate (IMC) Practice Exam

In a continuous advertising schedule, how are advertising dollars invested?

1. In fluctuating amounts

2. In zero amounts

3. In equal or relatively equal amounts

4. In declining amounts

The correct answer is: In equal or relatively equal amounts

In a continuous advertising schedule, the investment in advertising dollars is made in equal or relatively equal amounts over the specified period. This approach aims to maintain a consistent presence in the market, ensuring that the brand remains in the minds of consumers over time. By spreading the spending evenly, businesses can achieve a steady flow of advertising that helps to build brand recognition and support sales efforts without the fluctuation of spending that might occur in other advertising methods. This method contrasts with fluctuating amounts where spending might vary greatly from one period to another, potentially leading to inconsistent brand visibility. Similarly, zero amounts would imply no investment in advertising at all, which would not serve the goal of continuous market presence. Declining amounts might suggest a strategy of reducing advertising spend over time, which could lead to decreased consumer awareness and engagement rather than maintaining consistent exposure. The choice of equal or relatively equal amounts supports sustained advertising effectiveness and helps in managing budgetary expectations.