MANAGEMENT

Detailed explanation-1: -Company A fixes its marketing communication budget by observing the budget set by Company B. This is an example of establishing budget by: Affordable method.

Detailed explanation-2: -There are four common methods used by companies to decide on the communications budget. These are the affordable method, the percentage-of-sales method, the competitive parity method, and the objective-and-task method. Many companies employ more than one method to arrive at relatively accurate budget figure.

Detailed explanation-3: -Top-Down Budgeting Typically, they use a percentage-of-sales method, in which the budget is based on the amount the company spent on advertising in the previous year and the sales in that year.

Detailed explanation-4: -Communications budget: This budget is set aside to spread a particular message instead of educating and advertising. This also budgets for personal or one-on-one communications. Marketing and communications budgets can be: Distinct: When your advertising and personal communications do not intersect.