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:

Horizontal Analysis

Horizontal Analysis is a financial analysis technique that compares historical financial information over a sequence of reporting periods.