Which method sets promotional spending by determining specific communication goals, identifying tasks needed to achieve them, and estimating costs?
AObjective-and-Task Method
BPercentage-of-Sales Method
CCompetitive-Parity Method
DAffordable Method
Explanation
* Objective-and-Task Method establishes promotion budgets by defining specific objectives, tasks required, and estimated cost metrics.
* It forces management to spell out assumptions about relationship between dollars spent, exposure levels, and sales impact.
* It is the most logically sound promotional budgeting approach.
Exam Relevance
- Topic: Promotion Strategy
- Subtopic: Promotional Budgeting

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