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:

Psychological Stress

A form of stress experienced as a result of perceived pressures, conflicts, and demands that challenge an individual’s ability to cope, potentially affecting mental health.

Voluntary Control

The ability to consciously regulate one's own thoughts, feelings, or actions.

Conversion Disorder

A psychological condition in which emotional distress or unconscious conflict is expressed through physical symptoms without a medical cause.

Functional Neurological

Pertaining to a category of medical conditions where patients exhibit neurological symptoms, such as tremors or speech issues, without a clear structural cause.