The correct statement that describes the drawbacks of using an advertising-to-sales ratio approach to budgeting in marketing communications is:
c. It is easy to use because revenue projections can be made without considering marketing support. It relies on projections of revenue and expenses.
Drawbacks of using an advertising-to-sales ratio approach to budgeting
Using the advertising-to-sales ratio has its good points, but it also has some downsides.
Lack of flexibility: This method thinks that the amount of money
spent on marketing should always be a set percentage of the money made from sales. Sometimes, the marketing budget might need to change because of things like how well the market is doing and what other companies are doing. The set ratio may not consider these changing factors.
Ignores customer and competitor analysis: The approach to advertising and sales doesn't think about what customers want or what the competition is doing. It only looks at how ads affect sales, without considering how well marketing works or what other companies are doing.
which statement(s) describes the drawbacks of using an advertising-to-sales ratio approach to budgeting in marketing communications?
a. It is reliable because it does not vary dramatically across product categories. b. It can be calculated easily without having to analyze customers, competitors, and other contextual factors. c. It is easy to use because revenue projections can be made without considering marketing support. It relies on projections of revenue and expenses. _c. All of the answers are correct.