Which of the following is an advantage of using the percentage-of-sales method to determine the marketing communications budget?
A) The percentage-of-sales method encourages stability when competing firms spend approximately the same portion of their sales on communications.
B) The percentage-of-sales method views sales as the determiner of communications rather than as the result.
C) The percentage-of-sales method leads to a budget set by market opportunities rather than the availability of funds.
D) The percentage-of-sales method encourages experimentation with countercyclical communication or aggressive spending.
E) The percentage-of-sales method encourages building the communication budget by determining what each product and territory deserves.

Question

Quizplus · Accepted Answer

The advantage of using the percentage-of-sales method is that it encourages stability when competing firms spend approximately the same portion of their sales on communications. This can help avoid a race to the bottom in terms of pricing and promotions, and promote more balanced competition. The other answer choices are not correct as they do not accurately describe an advantage of the method.

Which of the Following Is an Advantage of Using the Percentage-Of-Sales