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

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The competitive-parity method involves setting the promotion budget based on what competitors are spending. This method takes into account the industry norms and ensures that the company is not overspending or underfunding its promotion efforts. It provides a more realistic evaluation of the company's promotion budget compared to other methods.

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