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. 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 Kelly and Trent use to arrive at the marketing communications budget?

Question

Quizplus · Accepted Answer

Kelly and Trent used the competitive-parity method to arrive at the marketing communications budget by matching their spending to their nearest market rival's spending. This method involves setting the budget based on the level of spending by competitors in the same market.

Kelly Is the Chief Marketing Officer of Boyd Pharmaceuticals