Which budgeting method compares the total brand sales with the total marcom budget during the previous year?
A)percentage-of-sales method
B)objective-task method
C)historical method
D)competitive method
E)all you can afford method

Question

Quizplus · Accepted Answer

The percentage-of-sales method compares the total brand sales with the total marketing communication budget during the previous year. The marketing communication budget is set as a percentage of the sales, usually ranging from 3-10% depending on the industry and company. This method is easy to use and provides a quick estimate of the budget. However, it does not take into account changes in market conditions or new product launches.

Which Budgeting Method Compares the Total Brand Sales with the Total