- Budgets that adapt to stock price performance
- Budgets that aren’t set for a particular time period or initiative
- Quarterly budgets that can increase without approval
- Fixed annual budgets that don’t fluctuate with demand
The correct answer is: Fixed annual budgets that don’t fluctuate with demand
Explanation: In traditional marketing organizations, a common budgeting strategy is the use of fixed annual budgets that do not fluctuate with demand. This implies that regardless of how demand shifts throughout the year, the budget allocated for marketing activities remains the same. However, this approach often limits the organization’s ability to analyze and leverage the most effective marketing channels, potentially inhibiting the optimization of resource allocation towards impactful channels.