Which of the Following Is a Disadvantage of Using a Percentage-Of-Sales

question 28

Multiple Choice

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

• A) It discourages stability when competing firms spend approximately the same percentage of their sales on communications.
• B) By using a percentage-of-sales method, communication expenditures tend to be extremely high irrespective of what a company can afford.
• C) It discourages management from thinking of the relationship among communication cost, selling price, and profit per unit.
• D) Dependence of the percentage-of-sales method on year-to-year sales fluctuations interferes with long-range planning.
• E) The percentage-of-sales method views sales as the result in itself rather than the determiner of communications.

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Definitions:

Ambient Storage

Refers to the storage condition that does not require any controlled temperature or humidity conditions, allowing materials to be stored at room temperature.

Delayed Retrieval

The process where recalling information becomes more challenging after a period of time has passed since the initial learning or exposure.

Short-term Memory

A component of memory where small amounts of information can be stored for a short period.

Sensory Storage

A type of memory storage that temporarily retains impressions of sensory information after the original stimuli have ended.