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Which budgeting method aims to keep the promotional investment proportionate to the competition's investment?
  • a)
    Percent of profit method
  • b)
    Matching the competition method
  • c)
    Keep pace method
  • d)
    Percent of sales method
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Which budgeting method aims to keep the promotional investment proport...
The keep pace method involves setting the promotional budget based on the proportion of the competition's investment in promotion. This method attempts to stay competitive by matching the promotional efforts of rivals. However, it may not necessarily lead to achieving a competitive advantage or outperforming the competition.
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Which budgeting method aims to keep the promotional investment proportionate to the competition's investment?a)Percent of profit methodb)Matching the competition methodc)Keep pace methodd)Percent of sales methodCorrect answer is option 'C'. Can you explain this answer?
Question Description
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