In using the payout planning method of developing a marketing communications budget, a higher percentage is allocated to marketing communications in the products early years when the goal is building brand awareness and brand equity.

Question

Quizplus · Accepted Answer

This statement is true. The payout planning method allocates a higher percentage of the budget towards marketing communications in the early years of a product's life cycle, when the goal is to build brand awareness and equity. As the product matures, the percentage of the budget allocated to marketing communications often decreases.

In Using the Payout Planning Method of Developing a Marketing