The four common methods that companies use to decide on a promotion budget includes the affordable method, the percentage-of-sales method, ________, and the objective-and-task method.

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The competitive-parity method is a common and effective method used by companies to decide on a promotion budget. This method involves analyzing the promotion budgets of competitors and setting a similar budget to remain competitive in the market. This ensures that the company's promotional activities are on par with their competitors while avoiding overspending or underspending on promotions.

The Four Common Methods That Companies Use to Decide on a Promotion