What is the difference between the percentage-of-past-sales ...

[nevelica]

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

Question 2

What are the different ratio-to-sales methods? On what do these methods rely?

[kalskdjl1212]

Answer to Question 1

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

Answer to Question 2

Ratio-to-sales methods calculate a budget based on percentage of anticipated sales, percentage of unit anticipated sales, percentage of past sales, and percentage of unit past sales. These methods rely heavily on industry norms and customs.

[nevelica]

Thanks for the timely response, appreciate it

[komodo7]

Gracias!