When The Home Depot introduced its Expo Design retailing concept,it spent several billion dollars on advertising and other promotions and successfully boosted its market share.As an advertising consultant,you would advise that Home Depot:
A) double its advertising budget in order to double its market share
B) maintain the current advertising budget and continue to focus on brand awareness and market share gains
C) slowly increase the amount spent on advertising and promotion to offset competitive advertisements
D) shift the budget dollars from advertising to sales promotion and personal selling due to a change in the product life cycle stage
E) focus on maintaining market share and spend proportionately less on advertising because additional expenditures would reap diminishing benefits

Question

Quizplus · Accepted Answer

Increasing advertising spending beyond a certain point often results in diminishing returns, so focusing on maintaining market share with proportionately less spending is a more efficient strategy.

When the Home Depot Introduced Its Expo Design Retailing Concept,it