Which of the following is a disadvantage of using a percentage-of-sales method to determine the marketing communications budget?
A) It discourages stability when competing firms spend approximately the same percentage of their sales on communications.
B) By using a percentage-of-sales method, communication expenditures tend to be extremely high irrespective of what a company can afford.
C) It discourages management from thinking of the relationship among communication cost, selling price, and profit per unit.
D) Dependence of the percentage-of-sales method on year-to-year sales fluctuations interferes with long-range planning.
E) The percentage-of-sales method views sales as the result in itself rather than the determiner of communications.
Answer: D