Question

"which method of developing a marketing communications budget establishes a ratio of advertising dollars to sales or market share then reduces the percentage as sales build and the product obtains market share?"

Answer 1

The method of developing a market communication budget that establishes a ratio of advertising dollars to sales or market share then reduces the percentage as sales build and the product obtains market share is called the payout planning. Payout planning is being defined as a way of fixing the budget on communications in which is based on the revenues that are expected to be obtained in the future. This likely considers more on communication than of the expense.