The MOST COMMON method of setting the marketing budget is to
A) let internal politics decide.
B) estimate what competitors are spending.
C) determine the cost of the tasks to be accomplished.
D) use all uncommitted revenue.
E) use some predetermined percentage of past or forecast sales.

Question

Quizplus · Accepted Answer

Using a predetermined percentage of past or forecast sales is the most common method of setting the marketing budget because it is based on actual revenue and takes into account future growth or decline. The other options (letting internal politics decide, estimating competitors' spending, determining the cost of tasks, and using all uncommitted revenue) are not as reliable or strategic in determining a marketing budget.

The MOST COMMON Method of Setting the Marketing Budget Is