Matthew McKinney, director of marketing for Greenwald Industrial Products, complains to his advertising director that the continuing slump in orders has apparently been perpetuated by the firm's failure to have the necessary advertising expenditures. Based on this information, Greenwald is most likely using the ____ approach to determine its advertising expenditures.

Question

Quizplus · Accepted Answer

The statement suggests that Greenwald is linking their advertising expenditures to the level of sales they generate. This indicates that they are using the percent-of-sales approach, where the advertising budget is set as a fixed percentage of past or anticipated sales.

Matthew McKinney, Director of Marketing for Greenwald Industrial Products, Complains