Which of the Following Is an Advantage of Using the Percentage-Of-Sales

question 27

Multiple Choice

Which of the following is an advantage of using the percentage-of-sales method to determine the marketing communications budget?

• A) The percentage-of-sales method encourages stability when competing firms spend approximately the same portion of their sales on communications.
• B) The percentage-of-sales method views sales as the determiner of communications rather than as the result.
• C) The percentage-of-sales method leads to a budget set by market opportunities rather than the availability of funds.
• D) The percentage-of-sales method encourages experimentation with countercyclical communication or aggressive spending.
• E) The percentage-of-sales method encourages building the communication budget by determining what each product and territory deserves.

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Definitions:

Long-range Planning

Long-range Planning involves setting goals and determining strategies for achieving them over an extended period, often three to five years into the future, to guide sustainable business growth.

Long-range Plans

Strategic plans that encompass a broad vision and long-term goals of an organization, typically extending several years into the future.

Long-term Goals

Objectives or targets a company or individual aims to achieve over an extended period, usually exceeding one year.

Operating Budgets

Detailed projections of income and expenses associated with the day-to-day operations of a business for a specific period.