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In traditional marketing organizations, how is budgeting usually handled?

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  • With quarterly budgets that don’t need prior approval to be increased
  • With budgets that aren’t set for a time period or initiative
  • With budgets that adjust to the price of stock
  • With fixed annual budgets that don’t adjust according to demand

The correct answer is: With fixed annual budgets that don’t adjust according to demand

Explanation: Traditional marketing organizations typically handle budgeting with fixed annual budgets that don’t adjust according to demand fluctuations. Such organizations allocate a specific amount for marketing for the year, and this budget remains fixed regardless of the performance or impact of different marketing channels. This approach doesn’t allow for flexibility in allocating more resources to the most effective or impactful channels as demand changes throughout the year.

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