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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Definitions:

Uncertainty

The state of having limited knowledge or understanding, making it difficult to accurately predict outcomes or make decisions.

Group Of Specialists

A team composed of individuals with advanced knowledge and skills in specific fields or areas of expertise.

Internal Structures

The organizational frameworks and hierarchies within a company that dictate how activities are directed to achieve the organization's goals.

Dominant Technologies

The most advanced and widely accepted technologies in a particular field or industry at a given time.