Question

What is a general advantage of setting promotion budgets to whatever level companies believe they can afford? Does not acknowledge marketing as an investment toward sales. Could help companies remain solvent during prolonged recession. Could cause companies to react too slowly to a competitive threat. Could make long-range marketing planning difficult.

Answer 1

Answer: Could help companies remain solvent during prolonged recession.

Explanation:

A promotion budget is a specific amount of money destined to promote the goods or services of a business.

During a recession, many businesses reduce their promotion budgets, although is the opposite of what could actually help them survive tough economical periods. It´s the businesses that improve promotion during recessions the ones that get a sales increase during and even after the recession.