What's a common budget strategy in traditional marketing organizations?
Fully flexible budgets based on stock price performance
No set budget for a time period or initiative
Fixed annual budgets that do not change even if demand fluctuates throughout the year
Quarterly budgets that do not need approval to increase
Choose an option to see if it’s correct. Check the explanation below. Learn Smarter, not Harder.
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Explanation: What’s a common budget strategy in traditional marketing organizations?
Explanation: The correct answer is **Fixed annual budgets that do not change even if demand fluctuates throughout the year**. Traditional marketing organizations often adhere to fixed annual budgets, regardless of fluctuations in demand or other market dynamics. These budgets are typically set at the beginning of the fiscal year and remain unchanged throughout, irrespective of changes in consumer behavior, market conditions, or performance metrics. While this approach provides a sense of stability and predictability in financial planning, it may not be as adaptive or responsive to shifts in market demand or emerging opportunities. However, it reflects a conventional approach to budgeting in many organizations, where budget allocations are predetermined and remain fixed for the duration of the fiscal period, regardless of changing circumstances.
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