The advertising budget procedure used most frequently by both B2C and B2B companies is the _____ method.
A) percentage-of-sales
B) arbitrary allocation
C) marginal cost
D) competitive parity
E) objective-and-task

Question

The advertising budget procedure used most frequently by both B2C and B2B companies is the _____ method.
A) percentage-of-sales 
B) arbitrary allocation 
C) marginal cost 
D) competitive parity 
E) objective-and-task

Quizplus · Accepted Answer

The objective-and-task method involves setting a specific objective for the advertising campaign and then determining the tasks and costs needed to achieve that objective. This method is considered the most effective and efficient because it allows companies to align their advertising budgets with their overall business objectives and measure the success of their advertising efforts. The other methods listed (percentage-of-sales, arbitrary allocation, marginal cost, and competitive parity) have their own limitations and may not result in the most strategic use of advertising funds.

The Advertising Budget Procedure Used Most Frequently by Both B2C