Question

When companies set their promotion budgets to match​ competitor's outlays, they are using the​ __________ method.

A.competitive-parity
B.​push-and-pull
C.percentage-of-sales
D.affordable
E.objective-and-task

Answer 1

Companies using the competitive-parity method determine their promotional budget by aligning it with the spending level of their competitors, ensuring that their marketing efforts stay competitive in the industry.

Step-by-step explanation:

When companies set their promotion budgets to match competitor's outlays, they are using the competitive-parity method. This method bases the budget allocation on what competitors are spending on promotions rather than on the company's own sales figures or marketing objectives. Some businesses believe this approach minimizes risk by keeping promotional expenses in line with industry standards, ensuring that their marketing efforts are not outmatched by their competitors.