Newer and smaller companies are inclined to use the ________ 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

Smaller and newer companies generally do not have a lot of resources to allocate towards marketing, so they tend to use the "what we can afford" method when developing marketing communications budgets. This involves determining how much money the company can realistically set aside for marketing without affecting other aspects of the business. The other methods (percentage of sales, meet the competition, payout planning) may be used by larger and more established companies with more predictable revenue streams.

Newer and Smaller Companies Are Inclined to Use the ________