In the competitive-parity method of setting an advertising budget, the budget is set based on ________.
A) a percentage of future sales
B) the total revenues that a company makes
C) the amount spent by similar companies in the same industry
D) objectives set by the company and the cost required to accomplish them
E) a percentage of current sales

Question

Quizplus · Accepted Answer

In the competitive-parity method, the advertising budget is set based on the amount spent by similar companies in the same industry. This approach assumes that competitors are facing similar market conditions and have similar marketing objectives. The goal of this method is to keep the company's advertising spending competitive with that of its rivals.

In the Competitive-Parity Method of Setting an Advertising Budget, the Budget