Newer and smaller companies are inclined to use which method when developing marketing communications budgets?
A)Percentage of sales
B)Meet the competition
C)What we can afford
D)Payout planning

Question

Quizplus · Accepted Answer

Newer and smaller companies are more likely to use "what we can afford" method when developing marketing communications budgets because they may not have a clear idea of what percentage of sales they should allocate nor the ability to meet the competition's advertising spend. Therefore, they tend to spend what they can afford without putting themselves into financial risk.

Newer and Smaller Companies Are Inclined to Use Which Method