Gabrielle 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 Gabrielle and Trent use to arrive at the marketing communications budget

Question

Kaya Dodson

Business

19 September, 07:14

Gabrielle 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 Gabrielle and Trent use to arrive at the marketing communications budget

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Stella · Answer 1

The correct answer is letter "C": competitive-parity method.

Explanation:

The competitive-parity method is the marketing approach in which companies simply adopt the same advertisement strategy its competitors incorporate in an attempt of reducing costs. No major research is conducted implementing this practice since entities limit themselves to follow the current marketing trend.

Incorporating similar advertisement approaches in most cases takes companies to allocate for it the same amount of money than rivals.