Question

If the previous year you reached 100% customer awareness in your company, this year what will you need to do to maintain this level? a. There is nothing to do. I have already reached as much awareness as I could. b. Spend the same amount of money spent the previous year to reach the same percentage of awareness this year. c. I would only need to create 33% new awareness to maintain 100% this year d. I need to spend at least half of the money spent the previous year to reach 75% of the population. e. None of the above is relevant

Answer 1

Answer:

I would only need to create 33% new awareness to maintain 100% this year ( C )

Explanation:

The reason for picking option C which states that i would only need to create 33% new awareness to maintain 1005 awareness this year is because 1/3 of the customers or potential customers who know about your business tend to forget about them so if order to maintain your previous awareness you need to create an additional 30% or as in this case 33% awareness to maintain 100% awareness the next business year

this formula can be used o achieve that.

last years awareness - ( 33% of last year awareness ) =  starting awareness

= 100 - ( 33 % of 100% ) = 77%

last year awareness - starting  awareness = additional awareness

= 100% - 77% = 33%

Answer 2

Answer:

C. I would only need to create 33% new awareness to maintain 100% this year.

Explanation:

Each product’s promotion budget determines its level of awareness. A product’s awareness percentage reflects the number of customers who know about the product. An awareness of 50% indicates half of the potential customers know it exists. From one year to the next, a third (33%) of those who knew about a product forget about it.

Last Year’s Awareness - (33% * Last Year’s Awareness) = Starting Awareness

If a product ended last year with an awareness of 50%, this year it will start with an awareness of approximately 33%. This year’s promotion budget would build from a starting awareness of approximately 33%.

Starting Awareness + Additional Awareness = New Awareness

You lose about 1/3rd each year as customers forget the product.