Question

Which of the following is a disadvantage of using a percentage-of-sales method to determine the marketing communications budget? A) It assumes competitors know better than the company's own planners. B) It results in high communication expenditures irrespective of what the company can afford. C) It is overly focused on the relationship among communication cost, selling price, and profit per unit. D) It treats sales as what determines communication, rather than as the result of effective communication. E) It is too focused on long-range planning.

Answer 1

Answer:

d

Explanation:

The different methods of determining marketing budget includes :

Percentage of Sales method. - it is usually used by small businesses. it is when a percentage of sales is used to determine the overall budget of marketing communications.  

Objective and Task method ; this involves a firm determining it objectives and then estimating the cost of reaching these objectives  

Market Share method. - uses its market share to determine its budget

Unit Sales method. - the cost of marketing for one item is determined and then multiplied by the desired sales level