Which of the following is true of the affordable method of setting an advertising budget?
A)It undervalues the importance of promotion in sales.
B)It always results in overspending on advertising.
C)It is ideal for long-range market planning.
D)It leads to a certain, and planned annual promotion budget.
E)It is optimal for companies that wish to avoid underspending on advertising.

Question

Quizplus · Accepted Answer

The affordable method often leads to undervaluing the importance of promotion in sales because it bases the budget on what the company thinks it can afford rather than on the potential return on investment from advertising.

Which of the Following Is True of the Affordable Method