Asked by Candace Stubblefield on Jun 17, 2024
Verified
Starbucks decides to allocate 30% of their total online marketing funding to social media.This decision represents a variation of which of the following?
A) Competitive parity method.
B) Creative message strategy.
C) Percentage of ad spend method.
D) Center of excellence model.
E) Objective and task method.
Percentage of Ad Spend Method
A budgeting technique for advertising in which the budget is set based on a fixed percentage of the company’s sales or projected sales, making it a simple and commonly used method for allocating advertising funds.
Competitive Parity Method
A budgeting method where a company sets its advertising and marketing budget based on the spending of its competitors.
Objective and Task Method
A budgeting method in marketing where objectives are set first, and then tasks and activities needed to achieve these objectives are determined and budgeted for.
- Comprehend the techniques for distributing funds across social media operations.
Verified Answer
JZ
Jazmin ZamoranoJun 18, 2024
Final Answer :
C
Explanation :
Allocating a specific percentage of the total marketing budget to a particular channel, like social media in this case, is an example of the percentage of ad spend method. This approach bases the budget on a set percentage of either the projected or actual sales or the overall marketing budget.
Learning Objectives
- Comprehend the techniques for distributing funds across social media operations.