If a company sets the communication budget so that the firm's share of communication expenses equals its share of the market,what IMC budgeting method is it using?

Question

Quizplus · Accepted Answer

The method described in the question is the competitive parity budgeting method, where a company sets its communication budget based on what its competitors are spending. The aim is to ensure that the firm's share of communication expenses is equal to its market share, which implies that the company is spending the same amount on communication as its competitors in the market. This method is used to avoid either overspending or underspending on communication, as both can have negative impacts on a company's marketing performance.

If a Company Sets the Communication Budget So That the Firm's