The ________method budgetary allocation method is designed to promote stability and minimize marketing warfare as well as taking advantage of the collective wisdom of the industry.
A) competitive parity
B) arbitrary allocation
C) percentage of sales
D) objective and task

Question

Quizplus · Accepted Answer

Competitive parity method is designed to allocate budgets based on what competitors are spending. This method promotes stability in the industry by avoiding marketing warfare and taking advantage of the collective wisdom of the industry. This is unlike the arbitrary allocation and percentage of sales methods, which are based on internal factors and may not reflect the competitive landscape. The objective and task method is also based on internal factors but is more strategic, as it requires setting specific marketing objectives and allocating budgets accordingly.

The ________Method Budgetary Allocation Method Is Designed to Promote Stability