When using the payout planning method of developing a marketing communications budget, the marketing budget would be reduced:
A)at the product's introduction, then increased when brand acceptance occurs.
B)when the brand becomes the market leader.
C)when the brand reaches the point at which additional dollars invested in communications yields diminishing returns.
D)when the market becomes saturated.

Question

Quizplus · Accepted Answer

The payout planning method involves reducing the marketing budget when the brand reaches a point at which additional dollars invested in communications yield diminishing returns. This means that the budget is decreased when the point of diminishing returns is reached in order to optimize the marketing spend. Therefore, option C is the best choice. Options A, B, and D do not accurately describe the payout planning method.

When Using the Payout Planning Method of Developing a Marketing