To set an advertising budget,the marketer of filing cabinets examines advertising to sales ratios published in trade magazines,and then allocates a percentage of sales dollars to the advertising effort.Which two budgeting methods are being employed?
A)Competitive parity and percent of sales method.
B)Competitive parity and payout planning method.
C)Payout planning and percent of sales method.
D)Percent of sales and objective and task method.
E)Payout planning and arbitrary allocation method.

Question

Quizplus · Accepted Answer

The marketer is using the percent of sales method by allocating a percentage of sales dollars to advertising. Additionally, by examining advertising to sales ratios in trade magazines, they are employing the competitive parity method, which involves setting budgets based on competitors' spending.

To Set an Advertising Budget,the Marketer of Filing Cabinets Examines