Which of the following statements regarding advertising expenditures is incorrect?
a. Because advertising is a relatively large part of the total marketing budget for business firms, managers tend to follow simple rules of thumb (e.g., allocate 1% of sales to advertising).
b. The fundamental problem with percentage-of-sales rules is that they implicitly make advertising a consequence rather than a determinant of sales and profits.
c. Percentage-of-sales rules suggest that the business advertiser reduce advertising when sales volumes decline.
d. The decision to "match the competition's level of advertising spending" is an example of a rule of thumb philosophy.
Answer: A