Which Method of Developing a Marketing Communications Budget Is Used

question 165

Multiple Choice

Which method of developing a marketing communications budget is used when the marketing budget is reduced as the brand reaches the point that additional dollars invested in communications yields diminishing returns?

• A) percentage of sales
• B) objective and task
• C) payout planning
• D) quantitative methods

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Definitions:

Recessionary Gap

A situation where an economy's real GDP is lower than its potential GDP, indicating underutilized resources.

Inflation Rate

measures the annual percentage increase in the average price level of goods and services across the economy.

Nominal Wages

The amount of money paid to employees without adjustment for inflation, representing the face value of wages at the time of payment.

Real Wages

The purchasing power of wages, adjusted for inflation, reflecting the actual goods and services that money earned as wages can buy.