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

question 52

Multiple Choice

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

• A) It assumes competitors know better than the company's own planners.
• B) It results in high communication expenditures irrespective of what the company can afford.
• C) It is overly focused on the relationship among communication cost, selling price, and profit per unit.
• D) It treats sales as what determines communication, rather than as the result of effective communication.
• E) It is too focused on long-range planning.

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Chancellor

A high-ranking official in certain legal or educational institutions, or a judge in courts of equity.

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A member of a jury, which is a group of people called to render a verdict in a legal case based on evidence presented during a trial.

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The party against whom an appeal is taken—that is, the party who opposes setting aside or reversing the judgment. Sometimes referred to as the respondent.