Which method of budget allocation is difficult to adopt for firms entering new markets?

Question

Quizplus · Accepted Answer

The percent-of-sales method determines the total budget allocated to advertising based on past or projected sales. This method is difficult to adopt for firms entering new markets which are more likely to benefit from budgeting methods such as competitive parity or objective-and-task. In new markets, sales figures do not yet exist and it is hard to estimate sales accurately enough to use the percent-of-sales method.

Which Method of Budget Allocation Is Difficult to Adopt for Firms