Author Question: Identify competitive-party budgeting methods.[br][br][b][color=#566D7E]Question ... (Read 74 times)

brutforce · **on:** Jun 29, 2018

Identify competitive-party budgeting methods.

Question 2

What is the difference between the percentage-of-unit-past-sales method and the percentage-of-unit-anticipated-sales method?

ebe · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

At least four budgeting methods are known as competitive-parity methods: match industry norms, match competitors, outspend competitors, and share of voice/market.

Answer to Question 2

The percentage-of-unit-past-sales method states that a marketing communications budget can be determined as a percentage of the unit price for last year's sales. The only difference between this method and the percentage-of-unit-anticipated-sales method is the source of the sales figure. The sales figure in the percentage-of-unit-anticipated-sales method is based on a sales forecast assuming a certain price level, while this method relies on past sales based on a fixed price.