What is competitive parity method, Marketing Management

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Q. What is Competitive Parity Method?

Competitive Parity Method: - It is usual approach in which advertising budget is framed in such a manner that our company is at par with competitors in spending money on advertising. Competitive parity budget is able to be determined in several ways these are as follows:

>> Spend the similar dollar amount on advertising as major competitor does.

>> Spend the similar % of sales on advertising as major competitor does.

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