Question

(p.195-196)What is the greatest shortcoming for the percentage-of-sales method of setting the advertising budget?
A.The percentage-of-sales method is too expensive to be used by small business owners.
B.The percentage-of-sales method violates the basic marketing principle of marketing activities stimulating demand and thus sales and not occurring as a result of sales.
C.The percentage-of-sales method assumes a certain number of dollars are needed to sell a certain number of units.
D.The percentage-of-sales method encourages top management to think of growth in terms of percentages.
E.The percentage-of-sales method assumes the marketplace will be dynamic.

Answer

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