59) Kelly is the chief marketing officer of Boyd Pharmaceuticals. She is meeting with Trent, the
chief financial officer to decide on the company’s marketing communications budget. They pore
over the sales reports and other financial records and determine the amount of resources they can
spare for marketing communications, after resources have been allocated to other functions, such
as R&D, logistics, etc. What method did Kelly and Trent use to arrive at the marketing
communications budget?
A) objective-and-task method
B) affordable method
C) competitive-parity method
D) activity-based method
E) percentage-of-sales method
60) Kelly is the chief marketing officer of Boyd Pharmaceuticals. She is meeting with Trent, the
chief financial officer to decide on the company’s marketing communications budget. They
decide to trust in the prevailing collective wisdom of the industry as a whole, and not wanting to
instigate a communications war, settle on spending only as much as their nearest market rival
does on marketing communications. What method did Kelly and Trent use to arrive at the
marketing communications budget?
A) objective-and-task method
B) affordable method
C) competitive-parity method
D) activity-based method
E) percentage-of-sales method
61) Marketing communications budgets tend to be higher when ________.
A) there is high channel support
B) there exists hardly any change in the marketing program over time
C) there are infrequent product purchases in large quantities
D) there are differentiated products and nonhomogeneous customer needs
E) there are many easily-reachable customer spread over small geographic territories