Firms typically determine their promotional budget using one of three methods: the affordable method,the percentage-of-sales-method,and the

Question

Quizplus · Accepted Answer

The objective-and-task method is considered the best choice as it involves setting specific objectives for the promotional campaign, determining the necessary tasks to achieve those objectives, and then calculating the budget required for each task. This approach ensures that promotional spending is aligned with marketing goals and eliminates the risk of overspending. The other methods, such as the affordable method and percentage-of-sales method, do not consider the specific objectives of the campaign and may result in under or overspending.

Firms Typically Determine Their Promotional Budget Using One of Three