Card 96 / 204: What method of budgeting is generally considered to be the poorest way of determining advertising expenditures?
A)
The residual approach because no attempt is made to connect advertising dollars with marketing goals
B)
Setting levels based on the competition's advertising budget because your company will not be able to achieve a competitive advantage
C)
Fixed percentage of sales because this method is inflexible
D)
The task method because budgeting by setting objectives is ineffective
E)
None of the above; all methods are equally good for determining an advertising budget.
Answer:
A) The residual approach because no attempt is made to connect advertising dollars with marketing goals
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