Colin McKinney, director of marketing for Greenwald Industrial Products, complains to his advertising director that the continuing slump in orders has apparently been perpetuated by the firm's failure to have the necessary advertising expenditures. Based on this information, Greenwald is most likely using the ____ approach to determine its advertising expenditures.

Question

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The statement "the continuing slump in orders has apparently been perpetuated by the firm's failure to have the necessary advertising expenditures" suggests that Greenwald Industrial Products is using the percent-of-sales approach to determine its advertising expenditures. This approach involves allocating a fixed percentage of sales revenue towards advertising, which can lead to fluctuations in advertising spending based on the company's sales performance.

Colin McKinney, Director of Marketing for Greenwald Industrial Products, Complains