Which of the following refers to the method of determining a communications budget in which the firm's share of the communication expenses is in line with its market share?
A)Percentage-of-sales method
B)Objective-and-task method
C)Competitive parity method
D)Brand equity method
E)Affordable budgeting method

Question

Quizplus · Accepted Answer

The competitive parity method involves setting the communication budget based on how much competitors are spending on their communication efforts. This ensures that the firm's communication expenses are in line with its competitors and its market share. The percentage-of-sales method is based on a percentage of the firm's sales revenue and does not consider the competition. The objective-and-task method involves setting communication objectives and then determining the budget needed to achieve them. The brand equity method is based on the value of the brand and its ability to generate revenue. The affordable budgeting method sets the communication budget based on what the firm can afford to spend.

Which of the Following Refers to the Method of Determining