Gabrielle 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. They decide to trust in the prevailing collective wisdom of the industry as a whole, and not wanting to instigate a communications war, settle on spending only as much as their nearest market rival does on marketing communications. What method did Gabrielle and Trent use to arrive at the marketing communications budget?

Question

Quizplus · Accepted Answer

Gabrielle and Trent used the competitive-parity method to arrive at the marketing communications budget. This method involves setting the budget based on what their nearest market rival spends on marketing communications.

Gabrielle Is the Chief Marketing Officer of Boyd Pharmaceuticals