The method of managing promotional budget to match the outlays of competitors is called?
Correct answer: C. competitive parity method
- A. percentage of sales method
- B. affordable method
- C. competitive parity method
- D. objective and task method
Explanation
The competitive parity method sets promotional spending in line with competitors' outlays or estimated market practice. The percentage-of-sales method instead bases the budget on the firm's own sales level.
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