Kelly is the chief marketing officer of Boyd Pharmaceuticals. She is meeting with Trent, the chief financial officer to decide on the company's marketing communications budget. After extensive discussions, they decide that the size of the budget will be calculated as a fraction of the overall turnover. What method did Kelly and Trent use to arrive at the marketing communications budget?

Question

Quizplus · Accepted Answer

Kelly and Trent used the percentage-of-sales method to arrive at the marketing communications budget, as they decided to calculate the budget as a fraction of the overall turnover. This method involves setting the marketing budget as a percentage of the previous year's sales, which can help ensure that the company spends an appropriate amount on marketing while also considering its overall financial performance.

Kelly Is the Chief Marketing Officer of Boyd Pharmaceuticals