There are four basic methods of determining the promotional budget. Of these, which is unsound and illogical because it assumes promotion is a result of sales and not the reverse?

Question

Quizplus · Accepted Answer

The percentage of sales method is considered unsound and illogical for determining the promotional budget because it assumes that promotion is a result of sales rather than a driving force behind sales. This method bases the promotional budget on a fixed percentage of past or forecasted sales, which does not account for the potential of promotion to generate sales.

There Are Four Basic Methods of Determining the Promotional Budget